Free tool
Income tax calculator
For New Zealand sole traders and the self-employed. Enter your profit for the year and see your income tax, ACC earner’s levy and take-home — using the 2025/26 rates.
Running a business? Wrightly tracks your live tax position from your real income and expenses, all year.
- Income tax
- $13,220.50
- ACC earner's levy
- $1,169.00
- Take-home after tax & ACC
- $55,610.50
Effective rate 20.6% · income tax plus ACC earner's levy. Excludes the industry ACC work levy, IETC, student loan and KiwiSaver.
New Zealand income tax rates, 2025/26
Individual income tax is progressive — each band of income is taxed at its own rate, so moving into a higher band only lifts the rate on the income above the threshold.
| Taxable income | Tax rate |
|---|---|
| Up to $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| Over $180,000 | 39% |
The self-employed also pay an ACC earner’s levy of 1.67% on liable earnings up to $142,283, billed separately by ACC.
Income tax questions
- What are the income tax rates in New Zealand?
- For the 2025/26 year, individual income is taxed at 10.5% up to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, and 39% above that. The rates are progressive, so each slice of income is taxed at its own rate.
- How is tax calculated when you are self-employed?
- You pay income tax on your net profit — business income minus allowable expenses — at the same individual rates as everyone else. No PAYE is withheld during the year, so you settle it through your IR3 return, and pay provisional tax in instalments once your tax bill passes $5,000.
- What is the ACC earner’s levy?
- On top of income tax, the self-employed pay an ACC earner’s levy of 1.67% on liable earnings up to $142,283 (2025/26). ACC bills it separately from your IRD tax, along with an industry-specific work levy this calculator does not include.
- Do I pay tax on all my income or just the profit?
- Just the profit. Deduct your allowable business expenses from your income first; income tax and ACC apply to what is left.
Wrightly is record-keeping software, not tax advice. Figures are indicative — check ird.govt.nz or your accountant for your own situation.