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What do you actually take home as a contractor?
Day rates and hourly rates look big until GST, income tax and ACC take their cut. Enter your rate to see your real take-home, and exactly how much to set aside for the taxman.
Enter your rate excluding GST (what you bill before adding GST).
Enter your rate to see your real take-home after tax, ACC, and what to set aside for GST.
What this works out
- GST set-aside.If you're registered, the 15% you add on top of your fees isn't yours, it's collected for IRD. We show it separately so you never spend it by accident.
- Income tax.Your fees (less expenses) run through the 2026/27 tax brackets, the same as anyone else's income.
- ACC + student loan. The ACC earner levy, plus 12% student loan over the threshold if you have one.
- What to actually set aside. One number to park from every invoice, so a tax bill never catches you out.
Contractor questions, answered
- How much should a contractor set aside for tax in NZ?
- It depends on your rate and expenses, but the total set-aside is income tax plus the ACC earner levy plus any GST you've collected. The calculator gives you one number to park from every invoice so a tax bill never catches you out.
- Do contractors have to charge GST?
- Only if you're GST-registered, which is required once your turnover tops $60,000 a year (and optional below that). If registered, you add 15% to your fees and set it aside for IRD. See our GST guide and calculator for the detail.
- How is contractor income taxed in New Zealand?
- Your fees, less business expenses, run through the same income-tax brackets as a salary, plus the ACC earner levy and 12% student loan over the threshold if you have one. There's no employer doing PAYE for you, so you carry it yourself.
- What's the difference between my rate and my take-home?
- Your rate is gross. Take-home is what's left after income tax, ACC, GST set-aside, KiwiSaver and expenses. The gap is often larger than people expect, which is exactly what this calculator makes visible.
A guide, not tax advice. Rates and thresholds change, so confirm the current figures with ird.govt.nz or your accountant. New to GST? Read our GST guide for sole traders and contractors.
Stop doing this in a spreadsheet.
We're building a contractor tier for KeaBudget: automatic GST and tax set-asides as you get paid, receipts in one place, and a read-only link to your accountant at year-end. Join the contractor waitlist to get in first.