NZ Sole Trader Tax Calculator
Calculate your complete tax picture as a NZ sole trader — income tax, ACC levy, GST, provisional tax, and take-home pay in one place.
Employment, investments, etc. Used for correct marginal rate.
Sole Trader Tax in New Zealand
As a sole trader in New Zealand, you have multiple tax obligations to manage. Unlike PAYE employees who have tax deducted automatically, sole traders must calculate and pay their own income tax, ACC earner's levy, and potentially GST and provisional tax.
Your taxable income is your gross business income minus allowable business expenses. Common deductible expenses include home office costs, vehicle expenses, professional fees, equipment, insurance, phone, internet, and marketing costs.
If your annual turnover exceeds $60,000, you must register for GST. You can voluntarily register if you are below the threshold. GST-registered sole traders collect 15% GST on their sales and claim back GST paid on business purchases.
If your residual income tax exceeds $5,000, you are required to pay provisional tax — tax paid in advance during the year in three installments. The standard method calculates this as 105% of your prior year's tax.
Frequently asked questions
What taxes do sole traders pay in NZ?
Sole traders pay income tax on their net profit (at the same rates as employees: 10.5% to 39%), ACC earner's levy (1.67% up to the cap for 2025-26), and GST at 15% if registered. You may also need to pay provisional tax if your residual income tax exceeds $5,000.
When do I need to register for GST?
You must register for GST if your taxable supplies (turnover) exceed $60,000 in any 12-month period, or if you expect them to exceed $60,000 in the next 12 months. You can voluntarily register if you are below the threshold.
What is provisional tax and when do I need to pay it?
Provisional tax is income tax paid in advance during the year. If your residual income tax (total tax minus tax credits) exceeds $5,000, you must pay provisional tax. Under the standard method, payments are due on 28 August, 15 January, and 7 May.
What business expenses can I deduct?
You can deduct expenses incurred in earning your business income: home office costs (proportion of rent/mortgage interest, power, internet), vehicle expenses, equipment and tools, professional fees, insurance, phone, marketing, and depreciation on business assets. Keep records for at least 7 years.
How is sole trader tax different from being a PAYE employee?
Sole traders pay the same income tax rates as employees, but must manage their own tax payments rather than having PAYE deducted automatically. Sole traders can deduct business expenses, must pay provisional tax if over the threshold, and may need to manage GST. KiwiSaver is optional (not compulsory as it is for employees).
Related Calculators
Income Tax Calculator
NZ income tax by bracket with effective and marginal rates.
ACC Levy Calculator
ACC earner's levy at 1.67% up to the annual cap.
GST Calculator
Add or remove GST at 15%. Registration threshold check.
Provisional Tax Calculator
Compare Standard, Estimation, and AIM methods.
Contractor vs Employee
Compare take-home pay as an employee vs independent contractor.
Self-Employment Tax
Income tax, ACC, and provisional tax installments.
Sources
Tax rates from Inland Revenue (IRD). ACC levy rates from ACC. GST rules from IRD — GST. Provisional tax from IRD — Provisional Tax.
Last updated April 2026. Rates sourced from IRD.