ACC earner levy rate
1.75%
2026/27 IRD published rate
🇳🇿 New Zealand2026/27 Tax YearIRD RatesGST + provisional flags
Sole Trader Calculator New Zealand 2026
Enter annual turnover and deductible expenses (NZD) — get income tax, ACC earner levy, take-home, GST registration likelihood, and a provisional tax instalment hint. Optional KiwiSaver and student loan. ACC work levy by industry is not modelled.
By Sammy S. · Founder · AuthorUpdated for 2026
$75,372
Take-home on NZ$100k
$60,000
GST threshold
$7,626
Provisional / instalment (NZ$100k)
2026/27
Tax year
Calculate sole trader take-home (NZD)
Enter turnover and expenses — we model income tax, ACC earner levy, GST likelihood, and provisional tax on taxable profit.
Sole trader inputs (NZD)
Enter turnover and expenses — we model income tax, ACC earner levy, GST likelihood, and provisional tax
$
GST-exclusive tax base. GST registration flag uses turnover vs $60,000 unless you override.
$
Allowable business costs — capped at turnover in this model.
Default is opted out (0%).
Include compulsory student loan when applicable
Need invoice GST maths? See the New Zealand GST calculator or the New Zealand paycheck calculator.
Take-home (NZD)
$75,372
from $100,000 taxable profit
Total tax
$24,628
24.6% of profit
GST flag
Likely
registration
Effective rate
24.6%
tax ÷ profit
Tax breakdown
Taxable profit$100,000
Income tax$22,878
ACC earner levy$1,750
GST registration likelyYes
Provisional / instalment≈ $7,626
ACC work levyNot modelled
Take-home$75,372
- • GST turnover $100,000 is at or above the IRD registration threshold ($60,000). This tool flags likelihood only — it does not model GST collected or remitted. See the New Zealand GST calculator for add/remove GST maths.
- • Provisional tax may apply when residual income tax exceeds $5,000 — educational three-instalment hint ≈ $7,626 each (Aug/Jan/May timing education; not IRD standard uplift, estimation, or AIM).
- • ACC earner levy is included. ACC work levy by industry classification is not modelled (no industry rates in this tool).
- • Not PAYE employment withholding — annual liability model for sole traders / contractors.
How to use
1
Enter turnover (NZD)
Gross business income for the year — GST-exclusive tax base in this model.
2
Add deductible expenses
Allowable business costs reduce taxable profit (capped at turnover).
3
Choose KiwiSaver & student loan
Optional KiwiSaver employee rate (default opted out) and student loan repayments.
4
Review take-home & flags
Income tax, ACC earner levy, GST registration likelihood, and provisional tax hint.
GST maths
This tool flags GST registration likelihood only. Use the GST calculator to add or remove the IRD 15% rate on invoice amounts.
GST Calculator New ZealandSole trader hubWhat we model
Taxable profit
Turnover − deductible expenses
Income tax (PAYE bands)
IRD progressive individual rates + IETC where applicable
ACC earner levy
1.75% up to $156,641
ACC work levy
Not modelled (industry rates excluded)
Student loan (optional)
12% above $24,128
The take-home and tax figures above come from the turnover, expenses, and options you enter—not a third-party feed. We treat taxable profit as turnover minus deductible expenses, then apply the same New Zealand PAYE + ACC earner levy engine used for employment modelling. GST registration likelihood and provisional-tax instalment hints use published IRD thresholds. Below are the formulas, steps, and a worked example from the same engine as the live calculator.
Worked example
$100,000 turnover, $0 expenses, KiwiSaver 0%, student loan off, 2026/27
| Annual turnover | $100,000 |
| Expenses | $0 |
| Taxable profit | $100,000 |
| Income tax | $22,878 |
| ACC earner levy | $1,750 |
| Take-home | $75,372 |
| GST registration likely | Yes |
| Provisional hint / instalment | $7,626 |
| Effective tax rate | 24.6% |
- Turnover $100,000 − expenses $0 = taxable profit $100,000
- $22,878 income tax + $1,750 ACC earner levy = $24,628 total tax (24.6% of profit)
- $100,000 − $24,628 tax = take-home $75,372
- ACC work levy not modelled (industry rates excluded)
Formulas
- Taxable profit: Turnover − deductible business expenses (expenses capped at turnover)
- Income tax (PAYE bands): Progressive IRD individual rates on taxable profit, less Independent Earner Tax Credit where applicable (full credit $520 between $24,000 and $66,000)
- ACC earner levy: 1.75% of liable earnings up to $156,641 (max levy $2,741.22)
- KiwiSaver / student loan (optional): KiwiSaver employee rate when selected (default opted out at 0%); student loan 12% on income above $24,128 when enabled
- Take-home: Taxable profit − income tax − ACC earner levy − optional KiwiSaver − optional student loan (additive rounded lines)
- ACC work levy: Not modelled — industry classification rates are not in this tool
- GST registration flag: Likely when turnover ≥ $60,000 (IRD), or when you override “GST registered”. Standard GST rate 15% shown for education; collected/remitted GST not modelled.
- Provisional tax hint: Educational three equal instalments when income tax (RIT proxy) exceeds $5,000 — not IRD standard uplift, estimation, or AIM
Calculation steps
- Compute taxable profitTurnover − expenses
Expenses cannot exceed turnover. Profit is the base for income tax and ACC earner levy.
- Apply optional deductionsKiwiSaver rate · student loan toggle · GST registered override
Same PAYE engine options used for New Zealand employment modelling; KiwiSaver defaults to opted out (0%).
- Run income tax + ACC earner levyPAYE brackets, IETC, ACC earner levy, optional KiwiSaver/student loan
Uses published IRD rates for tax year 2026/27.
- Flag GST and provisional taxGST if turnover ≥ $60,000 (or override); provisional hint when income tax > $5,000
Flags are educational likelihoods — not GST ledgers or IRD provisional notices.
- Return take-home and notesTake-home, tax lines, GST/provisional notes, ACC work levy exclusion
Component lines are rounded to whole NZD; take-home uses additive total tax for display consistency.
We model sole-trader trading profit under standard individual PAYE rates—not company structures, trusts, partnership splits, or GST collected/remitted ledgers. ACC work levy by industry classification is excluded (no industry rates here). Provisional instalment amounts are educational thirds of income tax when residual income tax likely exceeds the IRD gate—not standard uplift, estimation method, or AIM. Results are planning figures for education, not IRD advice.
Key takeaways — New Zealand sole trader tax (2026/27)
- On $100,000 turnover with NZ$0 expenses (2026/27, KiwiSaver opted out): about $75,372 take-home after $22,878 income tax and $1,750 ACC earner levy.
- ACC earner levy is included; ACC work levy by industry is not modelled.
- GST registration is likely from $60,000 turnover (IRD). At $80,000 with NZ$0 expenses this tool flags GST likely.
- With $10,000 expenses on $50,000 turnover, taxable profit falls to $40,000 and total tax falls to about $6,088 (take-home from profit ≈ $33,912).
- Provisional tax may apply when income tax exceeds $5,000 — about $7,626 per educational instalment on the NZ$100k expenses=0 vignette.
How New Zealand sole trader tax planning works
Sole traders pay income tax and ACC earner levy on trading profit — not on raw turnover. This calculator uses the same engine as our New Zealand employment tools, with GST and provisional tax flags and no ACC work levy by industry.
Turnover vs taxable profit
Turnover is gross business income. Taxable profit is turnover minus deductible expenses. Take-home is profit after income tax, ACC earner levy, and any KiwiSaver or student loan you model.
Unlike employment payday withholding, this is an annual liability model for sole traders and contractors.
What we model
Taxable profitTurnover − deductible expenses
Income tax (PAYE bands)IRD progressive individual rates + IETC where applicable
ACC earner levy1.75% up to $156,641
ACC work levyNot modelled (industry rates excluded)
Student loan (optional)12% above $24,128
KiwiSaver (optional)Employee rate when selected — default opted out (0%)
GST registration threshold$60,000 (15% rate for education; amounts not modelled)
New Zealand PAYE income tax bands (2026/27)
Headline individual structure used by the engine (IRD). Independent Earner Tax Credit may reduce tax between $24,000 and $70,000.
| Rate | Taxable range | Notes |
|---|---|---|
| 10.5% | $0 – $15,600 | 2026/27 IRD band |
| 17.5% | $15,600 – $53,500 | 2026/27 IRD band |
| 30% | $53,500 – $78,100 | 2026/27 IRD band |
| 33% | $78,100 – $180,000 | 2026/27 IRD band |
| 39% | Over $180,000 | Top individual rate |
ACC earner levy
ACC earner levy is included on liable earnings. ACC work levy by industry classification is not modelled.
Max liable earnings
$156,641
Max annual levy $2,741.22
ACC work levy
Not modelled
Industry classification rates are not in this tool
GST registration threshold
Likelihood only — collected and remitted GST dollars are not modelled. Use the New Zealand GST calculator for add/remove GST maths.
Registration threshold
$60,000
IRD — likelihood flag only in this calculator
Standard GST rate
15%
Education only — collected/remitted GST not modelled
Provisional tax (educational)
IRD generally requires provisional tax when residual income tax exceeded $5,000. This tool uses income tax as an RIT proxy and shows an educational three-instalment hint — not standard uplift, estimation, or AIM.
| Item | Detail | Notes |
|---|---|---|
| Residual income tax gate | More than $5,000 | IRD provisional tax entry (income tax used as RIT proxy here) |
| Educational instalments | Three equal parts | Aug / Jan / May timing education — not standard uplift, estimation, or AIM |
Student loan in the calculator
Repayments only apply if you enable the toggle. Rate and threshold follow published IRD figures.
| Item | Detail | Notes |
|---|---|---|
| Repayment threshold | $24,128 | No compulsory repayment at or below this income |
| Repayment rate | 12% | On income above the threshold when student loan is enabled |
Take-home by turnover (expenses = NZ$0)
KiwiSaver opted out, no student loan. GST likely when turnover ≥ $60,000. Figures from our engine for 2026/27.
Worked examples — NZ$50k, NZ$80k, and NZ$100k turnover
Expenses = NZ$0 unless noted — all from the same engine as the live calculator.
NZ$50k, KiwiSaver off
$41,987
Tax $7,138 · ACC $875
NZ$80k + student loan
$55,617
Student loan ≈ $6,705 · GST likely
NZ$100k (locked vignette)
$75,372
Tax $22,878 · ACC $1,750
When to use this sole trader calculator
Useful if…
- •Sole traders and contractors modelling tax on trading profit (NZD)
- •Comparing expense levels before setting aside tax money
- •Checking whether GST registration is likely near the IRD threshold
- •Planning for provisional tax cash flow vs annual return timing
Use other tools if…
- •Company, trust, or partnership structures (different rules)
- •GST collected/remitted ledgers — this tool flags likelihood only
- •ACC work levy by industry classification (not modelled)
- •Final IRD liability after return adjustments, standard uplift, or AIM
Common mistakes
Treating turnover as take-home
Taxable profit is turnover minus expenses. Income tax and ACC earner levy still apply to that profit — cash left is not the same as invoiced revenue.
Expecting employment PAYE withholding
This is an annual liability model for sole traders and contractors — not payday PAYE withholding from an employer.
Ignoring the GST registration threshold
IRD GST registration generally applies from $60,000 GST turnover — not only when you “feel big”. This tool flags likelihood; it does not model GST remittances.
Forgetting provisional tax cash flow
When residual income tax exceeds $5,000, provisional tax instalments often apply. Plan cash flow early — this tool’s three-way split is educational only.
Sole trader checklist
- 1Enter GST-exclusive turnover for the income year you are modelling.
- 2Claim only allowable business expenses — do not invent deductions.
- 3Leave KiwiSaver at 0% unless you contribute as an employee/member rate.
- 4Toggle student loan if compulsory repayments apply to your income.
- 5Watch the GST flag once turnover approaches the IRD registration threshold.
- 6Budget for provisional tax if income tax exceeds the residual income tax gate.
- 7Remember ACC work levy by industry is outside this model.
- 8Compare with the New Zealand paycheck calculator for employment PAYE.
- 9Confirm rates on ird.govt.nz before relying on a figure.
Myths vs facts
Myth: Sole traders skip ACC earner levy.
ACC earner levy at 1.75% generally applies to liable earnings for individuals — including sole-trader profit modelled here.
Myth: GST only matters once you hit NZ$100k.
IRD registration generally applies from $60,000 GST turnover. At $60,000 this expenses=0 vignette already flags registration as likely.
Myth: Provisional tax always equals one-third of last year’s tax with no other rules.
IRD offers several calculation methods (including standard uplift, estimation, and AIM). This calculator only shows an educational three-instalment hint when income tax exceeds the residual income tax gate.
Myth: Student loan is a flat percentage of all profit.
Repayments apply at 12% on income above $24,128 when enabled — at $80,000 profit with student loan on, take-home is about $55,617 vs $62,322 without.
Glossary
- Turnover
- Gross business income for the year — the GST-exclusive tax base used in this calculator.
- Taxable profit
- Turnover minus deductible business expenses (expenses cannot exceed turnover in this model).
- Take-home
- Taxable profit after income tax, ACC earner levy, and any KiwiSaver or student loan you enable.
- ACC earner levy
- Levy at 1.75% of liable earnings (capped). Separate from ACC work levy by industry, which is not modelled.
- GST registration threshold
- $60,000 GST turnover — IRD registration requirement. This tool flags likelihood only.
- Provisional tax
- Periodic payments toward expected tax when residual income tax exceeds $5,000 — educational three-instalment hint here, not a full IRD method.
Fixed turnover pages
Dedicated SEO pages with expenses = NZ$0 vignettes (includes NZ$60k+ for GST flag):
Related tools
- GST Calculator New ZealandAdd or remove IRD-standard 15% GST on invoices
- New Zealand paycheck calculatorEmployee PAYE gross → net
- Net to Gross New ZealandSalary needed for a take-home target
- New Zealand tax insightsIRD rates overview
- Metro paycheck examples NZCity take-home vignettes
- Effective tax rate NZ by incomeEffective rate ladder
- Tax Freedom Day New ZealandWhen you “work for yourself”
- NZ take-home vs countriesCross-border take-home compare
- Sole Trader Calculator AustraliaAU twin — Medicare, GST & PAYG flags
- Sole Trader Calculator IrelandIreland sole trader twin
Figures use published IRD rates for modelling and education — not personalised tax advice. Returns, provisional options, and business structures can change your real position.
FAQ
New Zealand sole trader — frequently asked questions
Turnover, expenses, ACC earner levy, GST flags, and provisional tax (2026/27).
It models income tax and ACC earner levy on trading profit (turnover minus expenses) for New Zealand sole traders and contractors. Optional KiwiSaver and student loan. It also flags GST registration likelihood and an educational provisional tax instalment hint.
Income year 2026/27 (1 April 2026 – 31 March 2027). PAYE bands and ACC earner levy 1.75% follow published IRD rates; student loan uses 12% above $24,128 when enabled.
About $75,372 with KiwiSaver opted out and no student loan — income tax about $22,878 and ACC earner levy about $1,750 (2026/27).
With $10,000 deductible expenses, taxable profit is $40,000, total tax about $6,088, and take-home from that profit about $33,912 (KiwiSaver opted out, no student loan).
When GST turnover reaches $60,000 (IRD), or when you mark GST registered. At $60,000 turnover with NZ$0 expenses this tool flags GST as likely. Standard GST rate 15% is shown for education — collected/remitted GST dollars are not modelled.
When income tax (used here as a residual income tax proxy) exceeds $5,000, an educational three-instalment hint appears. On $100,000 profit with NZ$0 expenses, about $7,626 per instalment in this model — confirm method and amounts with IRD (standard uplift, estimation, and AIM are out of scope).
Yes. The 2026/27 rate is 1.75% of liable earnings up to $156,641. ACC work levy by industry classification is not modelled.
Only if you enable the student loan toggle. Repayments are 12% on income above $24,128. On $80,000 profit with student loan on, take-home is about $55,617 vs $62,322 without.
Yes when you select an employee contribution rate above 0%. Default is opted out (0%) so the baseline vignettes match income tax + ACC only.
KiwiSaver opted out, NZ$0 expenses: about $41,987 at $50,000 and about $62,322 at $80,000 (GST flag on at NZ$80k). Open the amount pages or run the calculator for expenses and student loan variants.
The paycheck calculator models employment PAYE from gross salary. This tool starts from sole-trader turnover and expenses, adds GST and provisional tax flags, and excludes ACC work levy by industry.
On the NZ$0 expenses vignette, income tax is about $3,638 — at or below the $5,000 residual income tax gate, so provisional tax is not flagged as likely in this model.
No. Company and trust structures are out of scope. Use this tool for individual sole-trader / contractor profit only.
No. Figures use published IRD rates for modelling and education only. Check your return, provisional options, and ird.govt.nz for your exact position.
Related calculators
Sole Trader vs Employee NZ
Cash tie + employer KiwiSaver package gap
GST Calculator New Zealand
Add or remove IRD-standard 15% GST
KiwiSaver Calculator New Zealand
Employee, CEC after ESCT & government contribution
New Zealand Tax Calculator
Employee PAYE + ACC + KiwiSaver
Net to Gross New Zealand
NZD salary for take-home
New Zealand Tax Insights
IRD rates overview
Metro Paychecks New Zealand
NZ$100k COL ranking by city
NZ ETR by Income
NZ$30k–NZ$150k PAYE + ACC ladder