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Income tax calculator NZ

Estimate your NZ personal income tax, ACC earners levy, and set-aside rate for the 2026-27 tax year. Free, no email gate, no signup required.

Income is
2026-27 tax yearNo signup

Optional - reduces taxable income. Always an annual figure, regardless of the income period selected above.

Enter your income to see your set-aside estimate.

What you get, and where it stops

This calculator helps sole traders budget accurately throughout the year. Here is what is covered and where official filing takes over.

What it does

  • Calculates marginal income tax across all five NZ tax brackets for the 2026-27 tax year.
  • Computes the ACC earners levy at 1.75% up to the $156,641 liable earnings cap.
  • Estimates your combined effective tax rate and recommended percentage to set aside per invoice.
  • Flags when your gross turnover approaches or crosses the $60,000 GST registration threshold.

What it does not do

  • Does not prepare or file your IR3 annual return or provisional tax assessments with IRD.
  • Does not factor in student loan repayments, KiwiSaver deductions, or Working for Families credits.
  • Does not calculate secondary income sources, overseas investments, or company tax rates.
  • Does not provide personalised financial, accounting, or formal tax advice.

If you want the record kept

Invio tracks what you bill and get paid so your income tax set-aside is based on real numbers. The free invoicing plan includes 5 invoices a month with no credit card required. See what each plan adds

Tax brackets (2026-27 tax year)

New Zealand uses a progressive tax structure. Each marginal rate applies only to the dollars earned within that specific income band.

Taxable income bracket$0 to $15,600Marginal tax rate10.5%
Taxable income bracket$15,600 to $53,500Marginal tax rate17.5%
Taxable income bracket$53,500 to $78,100Marginal tax rate30%
Taxable income bracket$78,100 to $180,000Marginal tax rate33%
Taxable income bracketOver $180,000Marginal tax rate39%

ACC earners levy: in addition to income tax, sole traders pay the ACC earners levy of 1.75% on taxable earnings up to $156,641 (maximum annual levy: $2,741).

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Frequently Asked Questions

How much tax should I set aside as a sole trader in NZ?
A common rule of thumb is to set aside 20% to 25% of every invoice payment. The exact percentage depends on your annual net income and expenses. On a net taxable income of $50,000 you owe roughly 17% in combined income tax and ACC earners levy. On $80,000 it is closer to 22%, and on $150,000 around 28%. Use the calculator above to find your exact set-aside rate and transfer that percentage to a separate tax account each time you are paid.
What is the ACC earners levy and do sole traders pay it?
Yes. All self-employed individuals pay the ACC earners levy. For the 2026-27 tax year, the rate is 1.75% of liable income, capped at a maximum liable income of $156,641 (giving a maximum levy of $2,741). Unlike employees whose employers deduct ACC at source, sole traders pay this levy directly via their annual tax assessment or provisional tax.
Do I need to register for GST as a sole trader?
You must register for GST with Inland Revenue once your turnover is $60,000 or more in the last twelve months, or you expect it to reach that in the next twelve months. GST is completely separate from income tax: you collect it on your sales, subtract GST paid on business expenses, and remit the net difference to IRD.
How is self-employed tax different from PAYE?
With PAYE, an employer deducts income tax and ACC before you receive your salary. As a sole trader, clients pay you gross and no tax is withheld. You are responsible for calculating, saving, and paying your tax bill. If your end-of-year tax bill exceeds $5,000 (residual income tax), IRD will require you to pay provisional tax in three instalments during the following year.
Does Invio file my tax returns with Inland Revenue?
No. Invio is invoicing software, not a tax agent or filing intermediary. It tracks your invoiced income and client payments so you know exactly what you earned. Filing your annual IR3 return and GST returns is done through myIR or with your accountant. This calculator provides an estimate for planning purposes and does not constitute formal tax advice.

Stop guessing your tax set-aside.

Invoice your clients cleanly with Invio, know your gross earnings at a glance, and put the right percentage into your tax account every time.

No credit card required • 5 free invoices/month