What you want in your pocket after tax and ACC
Typically 25-35 hours (allow for admin time)
52 minus holidays, sick days, quiet periods
Hourly Rate (ex GST)
$82.74
$95.15 inc. GST
Day Rate (ex GST)
$661.92
$761.21 inc. GST
Gross Revenue
$114,184.57
Total Hours
1380/yr
How the rate is calculated
We work backwards from your desired take-home pay. Starting with your target net income, we add back income tax, ACC levies, and business expenses to determine the gross revenue you need. This is then divided by your billable hours to find your hourly rate.
Why billable hours matter
Not all working hours are billable. You need time for administration, marketing, invoicing, and professional development. Most freelancers find 25-35 billable hours per week realistic. Also account for holidays and quiet periods (typically 46-48 working weeks per year).
GST on your invoices
If your turnover exceeds $60,000 you must register for GST and add 15% to your invoices. This GST is not your income -- it is collected on behalf of IRD and remitted via your GST returns.
ACC levies for freelancers
Unlike employees, freelancers must pay their own ACC levies directly. This includes the earner levy, work levy, and working safer levy. These are calculated on your liable earnings and are an unavoidable cost of freelancing in New Zealand.
IRD-Aligned: Uses 2025-26 tax rates. Day rate is based on a standard 8-hour working day (40-hour week / 5 days).
How to calculate what you should charge and keep enough after tax
How do I work out the right freelance rate?
Start with the salary you want to take home, then add back all the costs an employer would normally cover: KiwiSaver (3%), ACC levies, annual leave (4 weeks), sick leave (10 days), public holidays (11 days), and your business expenses. Divide the total by your expected billable hours. If you want a NZ$80,000 take-home, your hourly rate might need to be NZ$70 to NZ$90 depending on your costs.
Should I charge hourly or per project?
Both are common in New Zealand. Hourly rates work well when the scope is unclear or the project might change. Project rates are better when you can accurately estimate the work. Many freelancers charge NZ$50 to NZ$150 per hour depending on their field. For projects, add a 15-20% buffer for unexpected work.
Do I need to charge GST on my freelance rate?
If your annual turnover is above NZ$60,000, you must register for GST and add 15% to your invoices. On a NZ$80 hourly rate, you would charge NZ$92 including GST. Remember, the GST portion is not your income — you collect it and pay it to IRD. Below NZ$60,000, GST registration is optional but can let you claim GST back on business purchases.
What taxes do I pay as a freelancer?
You pay income tax on your profit (revenue minus expenses) at standard rates from 10.5% to 39%. You also pay ACC earner levy (about 1.39%) and self-employed ACC levy (varies by industry). If your tax bill is over NZ$5,000, you will need to pay provisional tax in advance during the year.
What business expenses can I deduct?
You can deduct any expense that is directly related to earning your freelance income. Common ones include: home office costs (a percentage of rent, power, and internet), computer and software, professional development courses, travel to client meetings, accounting fees, phone bills, and professional memberships. Keep all receipts and records.
How do I handle KiwiSaver as a freelancer?
As a self-employed freelancer, KiwiSaver is voluntary. You will not get employer contributions, but you can still contribute and receive the government contribution of up to NZ$521.43 per year (if you contribute at least NZ$1,042.86). Set up regular payments to your KiwiSaver provider to stay on track for retirement.
How much should I set aside for tax?
A safe rule is to set aside 30-35% of your gross income for tax and ACC. Open a separate savings account and transfer this amount each time you receive a payment. If you earn NZ$100,000 in a year, expect to pay roughly NZ$23,000 in income tax plus NZ$2,500 in ACC levies. Having the money ready avoids a nasty surprise at tax time.
Do I need to register as a sole trader?
There is no formal registration to become a sole trader in New Zealand — you just start trading. However, you do need an IRD number and must tell IRD you are self-employed. If your turnover exceeds NZ$60,000, you must register for GST. You should also consider professional indemnity insurance and check if you need any industry-specific licences.
IRD-Aligned: Based on 2025 IRD rates and thresholds. For personal advice, speak to a qualified tax agent.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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