Work out your self-employed take-home pay in seconds. This free NZ contractor tax calculator estimates the income tax and ACC earner levy on your net profit, so you can see roughly what you actually keep. Built for sole traders, contractors and tradies.
Estimate only, based on 2024–25 tax year rates (income tax brackets effective 31 July 2024 and the 2024/25 ACC earner levy). GST is collected separately on behalf of IRD and is not your income, so enter GST-exclusive figures. This excludes student loan repayments and KiwiSaver contributions. Always confirm with IRD or your accountant.
As a contractor or sole trader, you don't get taxed on every dollar that comes in. You're taxed on your net profit — your gross self-employed income minus your allowable business expenses. That net profit is what this self employed tax calculator NZ uses to work out your tax.
Income tax is charged on a progressive scale. For the 2024–25 tax year (brackets effective 31 July 2024) the first $15,600 is taxed at 10.5%, then 17.5% up to $53,500, 30% up to $78,100, 33% up to $180,000, and 39% above that. On top of income tax you also pay the ACC earner levy, which funds cover for work and non-work injuries. The calculator applies the 2024/25 earner levy rate of 1.60% on your taxable income up to the annual income cap. The result is your estimated take home pay calculator NZ figure — what's left after tax and ACC.
Employees have PAYE deducted automatically; the self-employed usually don't. Instead, once your tax bill passes a threshold, IRD asks you to pay provisional tax in instalments through the year. It's not an extra cost — it spreads the income tax this provisional tax calculator estimates across the year so you're not hit with one big bill. Putting tax aside as you invoice is a core part of managing cashflow as a tradie.
For some contract work the payer deducts withholding tax before paying you — these are called schedular payments and they work a bit like PAYE. That tax counts toward your end-of-year bill, so you may still owe more (or get a refund) once your net profit is finalised. Knowing your true take-home helps you set the right price — check your numbers with the charge-out rate calculator.
If you're GST-registered, the 15% GST you add to invoices isn't yours — you collect it for IRD and pass it on. That's why you enter GST-exclusive figures here. To add or remove GST on a price, use the GST calculator, and make sure your invoices are clear and correct by reading how to write invoices that get paid. Knowing your contractor take home pay NZ figure, your tradie tax, and your income after tax all starts with getting paid the full amount on time.
As a self-employed contractor or sole trader you pay income tax on your net profit (income minus allowable business expenses), not on your gross income. The tax is worked out using the same progressive brackets as everyone else, starting at 10.5% and rising to 39%. On top of that you pay the ACC earner levy. This take-home pay calculator estimates both for you.
Provisional tax is how IRD collects income tax during the year rather than in one lump sum. If your residual income tax was more than $5,000 in the previous year, you generally pay provisional tax in instalments toward the current year. It is not an extra tax — it is a prepayment of the income tax shown in this provisional tax calculator estimate.
If you do certain contract work, the payer may deduct withholding tax (called schedular payments) before paying you — similar to PAYE for employees. That tax counts toward your end-of-year income tax bill. You still file a return and may owe more or get a refund depending on your net profit.
No. If you are GST-registered, the GST you charge is collected on behalf of IRD and is not your income. Enter GST-exclusive figures into this calculator. Use our GST Calculator to add or remove the 15% GST on a price.
No. This is an estimate of income tax and the ACC earner levy only. It does not include student loan repayments, KiwiSaver contributions, or any tax credits. Always confirm your actual figures with IRD or your accountant.