NZ Tax Guide for Tradespersons (2025-26)
Tradespersons in New Zealand work across construction, engineering, automotive, and other trades. Many tradespeople start as employed apprentices and later move to self-employment. Self-employed tradespersons can claim significant tax deductions for tools, vehicles, and other business expenses.
Quick Tax Snapshot — Median Tradesperson Salary
Based on Stats NZ data for skilled trade workers. Apprentice tradespersons earn $40,000–$55,000. Qualified tradespersons earn $60,000–$80,000. Experienced self-employed tradespersons can earn $90,000+.
| Item | Annual | Monthly |
|---|---|---|
| Gross Salary | $68,000 | $5,667 |
| Income Tax (PAYE) | −$12,621 | −$1,052 |
| ACC Levy (1.6%) | −$1,136 | −$95 |
| KiwiSaver (3%) | −$2,040 | −$170 |
| Take-Home Pay | $52,204 | $4,350 |
Key Deductions for Tradespersons in NZ
Trade qualification and registration fees
Fees for trade certifications, industry registration, and apprenticeship examinations are deductible where not covered by an employer.
Tools and trade equipment
Tools and specialised equipment required for your trade are deductible. The low-asset write-off threshold allows immediate deduction of items under $1,000.
Vehicle expenses
Work vehicle costs for driving to job sites (not commuting from home to a fixed workplace) are deductible for self-employed tradespersons.
Safety and protective equipment
Hard hats, safety boots, hi-vis gear, gloves, and other protective equipment 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 is a tradesperson's income taxed in NZ?
Employed tradespersons pay PAYE on their wages. Self-employed tradespersons pay income tax at individual rates on their net business income. Both pay ACC levies, though the rates and structure differ.
Can self-employed tradespersons claim tool purchases?
Yes. Tools used for earning income are deductible business expenses. Items costing under $1,000 can be claimed in full immediately. Higher-cost items (e.g., a $3,000 table saw) are depreciated over their useful life using IRD's published rates.
Do tradespersons need to charge GST?
Self-employed tradespersons with annual turnover exceeding $60,000 must register for GST and charge 15% on their labour. Many tradespeople will exceed this threshold, especially if they also charge for materials.
What is the apprenticeship training incentive?
Under the Apprenticeship Boost scheme, employers of apprentices in the trades may receive government payments to help cover the cost of training. Training levies paid by registered employers may also be partially deductible.
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.
Open Income Tax Calculator →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.
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