How to Set Your Hourly Rate as a NZ Tradie
Getting your hourly rate right is one of the most important decisions you'll make as a sole trader or small business owner. Charge too little and you'll struggle to survive. Charge too much and you'll lose jobs to competitors.
The Formula
Hourly rate = (Target income + Overheads + Profit) ÷ Billable hours
What to Include in Overheads
Most tradies underestimate overheads. Include:
- Vehicle costs — fuel, registration, WOF, insurance, payments
- Tools and equipment — purchases, repairs, replacement
- Insurance — public liability, professional indemnity, tool insurance
- Phone and internet
- Accounting and admin — Xero subscription, accountant fees
- Marketing — website, Google ads, trade directories
- Superannuation / KiwiSaver (if contributing as an employer or self-employed)
A good rule of thumb: overheads are 20–35% of revenue for most NZ tradies.
ACC Levies for NZ Tradies
ACC (Accident Compensation Corporation) collects two levies from self-employed tradies: - Earners' levy — ~1.39% of your liable earnings (2024–25) - Work levy — varies by industry (construction ~0.8%, electrical ~0.5%)
Your total ACC bill is deducted from your gross earnings, so factor it into your rate.
Industry Benchmarks (NZ, 2025)
| Trade | Typical rate range (ex GST) |
|---|---|
| Builder (LBP) | $75–$110/hr |
| Electrician | $80–$120/hr |
| Plumber/Gasfitter | $90–$130/hr |
| Painter | $55–$80/hr |
| Landscaper | $50–$75/hr |
Use Tradify or Fergus to track your actual billable hours and ensure you're hitting your targets.