Tax for NZ Subcontractors
GST Registration
You must register for GST if your turnover exceeds $60,000 in any 12-month period. Most tradies earning a full-time income will be over this threshold. You can register voluntarily below this threshold.
GST basics: - Charge 15% on all invoices - Claim back 15% (input tax) on business expenses - File GST returns every 1 or 2 months, or 6 months (if under $500k/yr)
Tax Rates (NZ 2025)
| Income | Rate |
|---|---|
| $0 – $14,000 | 10.5% |
| $14,001 – $48,000 | 17.5% |
| $48,001 – $70,000 | 30% |
| $70,001 – $180,000 | 33% |
| $180,001+ | 39% |
Set Aside Rule
As a self-employed tradie, set aside 25–30% of every payment for tax and GST. The biggest mistake new tradies make is spending their GST component before the filing date.
Provisional Tax
If you owe more than $5,000 residual income tax in any year, you must pay provisional tax the following year. The standard method is 105% of the previous year's tax, paid in 3 instalments.
See our GST Calculator for quick invoice calculations.