NZ Income Tax Rates for Sole Traders: Brackets and Example
17 October 2026 · Guide · Not tax advice
Educational information only. Not tax, legal or financial advice. We are not Inland Revenue (IRD) or ACC and are not affiliated with them. Check ird.govt.nz, or ask a qualified tax agent. Sources read October 17, 2026. Anything marked expected should be re-checked. Examples use made-up numbers. This page contains no affiliate links.
Short answer: The IRD lists these rates "from 1 April 2025", based on your total income for the tax year, with no end date shown on the page: 10.5% on $0 to $15,600; 17.5% on $15,601 to $53,500; 30% on $53,501 to $78,100; 33% on $78,101 to $180,000; 39% above $180,000. The IRD says income from self-employment is not taxed before you get paid; you pay tax on it at the end of the tax year, based on your total income.
Made-up example (taxable income $90,000, before ACC levies and other items)
| Slice | Tax |
|---|---|
| $15,600 x 10.5% | $1,638.00 |
| $37,900 x 17.5% | $6,632.50 |
| $24,600 x 30% | $7,380.00 |
| $11,900 x 33% | $3,927.00 |
| Total | $19,577.50 |
| This ignores deductions and ACC levies; see ACC levies. |
How it connects to payments
Because no tax is withheld on self-employed income, a sole trader's tax is settled via provisional tax and the year-end bill (terminal tax). Other income such as salary may have tax deducted at source; the IRD notes you could get a refund or a bill if the wrong tax code was used.
Other IRD points on the page
- Secondary tax codes apply when you have more than one source of income (SB, S, SH, ST, SA by estimated annual total income).
- Tailored tax rates exist for salary, wages and certain pensions; for schedular payments you can choose your rate.
The year to 31 March 2027
The IRD page shows the "from 1 April 2025" table as current. Whether the same rates apply for the 2027 tax year is expected but not stated, and any change would be announced separately.
FAQ
Is the earlier 2024-25 table different? Yes: the IRD page also lists the rates from 1 April 2024 to 31 March 2025, with different thresholds ($14,000, $48,000, $70,000).
Does the student loan add to this? See student loan repayments.
What we could not verify
- Whether the rates change for the 2027 tax year (the IRD page shows only "from 1 April 2025").
- ACC levies, student loan, KiwiSaver, Working for Families and the Independent Earner Tax Credit: not covered.
- Deductions and allowable expenses for your own business.
- Provisional-tax effect for a specific income level.
Sources (official)
- IRD, Tax rates for individuals — official page (read in full October 17, 2026; page shows no review date)