New Zealand self-employed net income calculator (sole trader)
Your net income as a New Zealand sole trader is profit minus income tax at the ordinary individual rates — there is no tax-free threshold — plus the ACC earner levy on liable earnings up to the annual maximum.
Worked example: with Annual profit after expenses of 85,000, this model computes Net income / year 65,585. See the full breakdown.
⚠ Illustrative rates Updated for 2026 · sources checked 2026-08-22
How sole trader in New Zealand is calculated
New Zealand has no tax-free threshold at all. Every dollar of profit is taxed from the first one, with a low 10.5% starting band standing in for the allowance most countries give. That makes the system unusually simple to compute and unusually unforgiving of a small income.
The ACC earner levy is the second charge and the one that has no equivalent elsewhere in this catalog. It funds cover that replaces up to 80% of your income if injury stops you working, is charged on liable earnings up to an annual maximum, and is invoiced separately from the tax. The default CoverPlus is priced on your last completed year; CoverPlus Extra lets you agree a fixed level of cover in advance instead.
Worked example
| Annual profit after expenses (NZD) | 85000 |
|---|---|
| Income tax ✓ | 17927.5 |
| ACC earner levy ✓ | 1487.5 |
| Net income / year ✓ | 65585 |
Every row is computed by the engine from the inputs above. Rows marked ✓ are additionally pinned by a published self-test vector.
Frequently asked questions
How much tax does a sole trader pay on 85,000 NZD?
About 17,928 NZD of income tax plus roughly 1,488 NZD of ACC earner levy, leaving about 65,585 NZD.
Is there a tax-free threshold in New Zealand?
No. Income is taxed from the first dollar at 10.5%, rising through 17.5%, 30%, 33% and 39%. The low starting rate is the substitute for a threshold.
What is the ACC earner levy?
A levy on liable earnings, 1.75% for 2026/27 up to a maximum of 156,641 NZD, that funds income replacement if an injury stops you working. It is invoiced separately from income tax.
Sources
- Inland Revenue / business.govt.nz — Tax basics for sole traders · checked 2026-08-22
- NZ tax rates and the 2026/27 ACC earner levy (1.75%, maximum liable earnings 156,641 NZD) · checked 2026-08-22
Estimate. Not tax advice. The rates in this calculator are illustrative: they reproduce the shape of the charge through 3 self-test cases, but they are not the official schedule, so the amount shown will not match your bill. Use the official source above for that.
Check the arithmetic yourself: how this calculator is verified — the formula behind every derived value, the 3 test cases the engine reproduces, and what the badge does and does not claim. Also available as machine-readable JSON.
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Also for New Zealand: New Zealand take-home pay · New Zealand rego & ruc
All New Zealand calculators · All calculators
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