NZ Self-Employment Tax Calculator
Calculate your tax liability as a self-employed individual, sole trader, or contractor in New Zealand.
Self-Employment Tax in New Zealand
Self-employed individuals in New Zealand pay income tax on their net profit (gross income minus allowable business expenses) at the same progressive rates as employees.
Unlike employees, self-employed people must pay provisional tax in advance. Standard provisional tax is paid in three installments throughout the year: 28 August, 15 January, and 7 May.
Self-employed individuals also pay the ACC earner's levy (1.67% up to the cap for 2025-26). KiwiSaver is optional for the self-employed — you can choose to contribute voluntarily.
Frequently Asked Questions
How is self-employment income taxed in NZ?
Self-employment income is taxed at the same progressive rates as employment income: 10.5% on the first $15,600, 17.5% on $15,601-$53,500, 30% on $53,501-$78,100, 33% on $78,101-$180,000, and 39% over $180,000 for 2025-26. Tax is calculated on your net profit (income minus expenses).
What is provisional tax?
Provisional tax is income tax paid in advance during the year. If your residual income tax is more than $5,000, you generally need to pay provisional tax. Standard method pays in 3 installments based on the previous year's tax plus 5%.
What expenses can I deduct?
You can deduct expenses incurred in earning your self-employment income, including office costs, vehicle expenses, professional fees, insurance, and depreciation on business assets. Keep records for at least 7 years.
Do I need to pay ACC as a self-employed person?
Yes. Self-employed individuals pay the ACC earner's levy at 1.67% on earnings up to the cap ($152,790 for 2025-26). You may also need to pay the ACC working safer levy depending on your industry.
Sources
Tax rates from Inland Revenue (IRD). Provisional tax rules from IRD — Provisional Tax.
Last updated March 2026. Rates sourced from IRD.