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NZ Tax Guide for Lawyers (2025-26)

Lawyers in New Zealand are employed in law firms, in-house legal roles, and the Crown Law Office. Partners and sole practitioners operate as self-employed and face income tax, provisional tax, and ACC obligations. New Zealand Law Society practising certificate fees are required to practice.

Quick Tax Snapshot — Median Lawyer Salary

Based on Stats NZ and NZ Law Society data. Graduate lawyers (cadets) earn $60,000–$75,000; senior associates $100,000–$150,000; partners at large firms $200,000+.

Item Annual Monthly
Gross Salary $100,000 $8,333
Income Tax (PAYE) −$22,878 −$1,906
ACC Levy (1.6%) −$1,670 −$139
KiwiSaver (3%) −$3,000 −$250
Take-Home Pay $72,453 $6,038
Effective tax rate: 22.9% · Marginal rate: 33.0% · Tax year: 2025-26

Key Deductions for Lawyers in NZ

NZLS annual practising certificate

New Zealand Law Society practising certificate fees paid by the lawyer (not reimbursed) are deductible as a condition of earning income from legal work.

Continuing legal education (CLE)

CLE course fees required to maintain your practising certificate are deductible where not covered by your employer.

Legal professional indemnity insurance

Self-employed solicitors paying their own professional indemnity insurance can deduct the premium as a business expense.

Legal reference materials

Lexis Nexis, CCH, or other legal database subscriptions and textbooks purchased for work are deductible.

Deductibility depends on individual circumstances. Consult a registered tax agent or accountant for personalised advice. See IRD guidance on individual expenses.

Frequently Asked Questions

How much income tax does a lawyer earning $100,000 pay in NZ?

On a $100,000 annual salary in 2025-26, a lawyer pays approximately $22,878 in income tax. The effective tax rate is about 22.9% and the marginal rate is 33%. After ACC levy and 3% KiwiSaver, take-home pay is approximately $72,500.

Do law partners pay different tax to employed lawyers?

Yes. Partners in a law firm are typically self-employed and pay income tax at individual rates on their share of partnership profits. Unlike employees, they do not have tax withheld automatically and must pay provisional tax during the year.

Are NZLS fees tax deductible?

Yes. NZLS annual practising certificate fees are generally deductible for lawyers as they are a prerequisite for earning income from legal practice. The IRD accepts these as necessary employment-related expenses.

Do lawyers need to charge GST?

Most law firms are registered for GST and charge 15% on their legal fees. If you are a sole practitioner with annual fees over $60,000, you must register for GST. GST charged on services is collected and paid to IRD.

Calculate Your Actual Take-Home Pay

The figures above are based on a median salary estimate. Use our free calculator to see your exact take-home pay for your own salary — including student loan repayments if applicable.

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Explore Other Professions

See NZ tax breakdowns for other common professions:

Calculations assume 2025-26 tax year, 3% KiwiSaver employee contribution, no student loan, and ACC earner's levy at 1.6% (capped at $152,790). Figures are estimates only. New Zealand has no personal allowance — income tax applies from the first dollar of income.

Related Calculators

Last updated 21 June 2026Tax year 2025-26

Data sources: Inland Revenue (ird.govt.nz)

This tool is general information only, not financial advice.

Reviewed by NZ Tax Tools Editorial Desk

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