Side income: what to put aside for tax, at your own rate
Money from Uber, Airtasker or freelance work has no tax taken off. KeaBudget works out what to put aside at your own tax rate, on top of your wages, and how close you are to the $60,000 GST threshold.
Side income is taxed on top of your wages, so it's taxed at your top rate, not from the bottom bracket up. Earn $70,000 in a job and $10,000 on the side, and most of that $10,000 is taxed at 30% and 33%, plus the ACC levy.
Put that money in the Side income category and a Side income section appears on your dashboard:
- Put aside for tax: the tax on this tax year's side income so far, worked out with the same NZ tax figures as our pay calculator.
- GST threshold: your last 12 months against $60,000. Past that in any 12 months, GST registration is compulsory, so it warns you from $50,000.
It also reminds you that untaxed income means an IR3 tax return, and when provisional tax is likely. Business costs reduce the tax, so treat it as an estimate, not tax advice.