Skip to content
mathbehind

New Zealand Contractor and Sole Trader Toolkit 2026/27

New Zealand taxes income from the first dollar, starting at 10.5% and rising to 39% above $180,000. The bracket thresholds were raised in July 2024 and haven't changed for 2026/27. On top of income tax, earners pay the ACC earners' levy.

Contractors and sole traders usually pay through provisional tax during the year rather than PAYE, and GST is 15% once you're registered. The calculators below cover each.

  1. 1. Income tax and ACC

    Your 2026/27 income tax, ACC earners' levy and take-home pay.

  2. 2. Rates and GST

    Convert day rates, check your rate covers costs, and add or remove 15% GST.

  3. 3. Save and invoice

    Set aside tax from each payment and set clear invoice due dates.

Questions people ask

What is the GST rate in New Zealand?

15%. To remove GST from a GST-inclusive price, divide by 1.15.

Is there a tax-free threshold in New Zealand?

No. Income is taxed from the first dollar at 10.5%.

How do contractors pay tax in New Zealand?

Usually through provisional tax instalments during the year, or by having schedular payments tax withheld by the client. Either way, set money aside from each invoice.