Your taxable income from the previous tax year
Tax payable minus PAYE and other credits already withheld
Enter your income details
Results will appear here once you enter your residual income tax
Understanding provisional tax in New Zealand
Standard (uplift) method
The standard method calculates provisional tax at 105% of your prior year residual income tax (RIT). This is divided into three equal instalments due on 28 August, 15 January, and 7 May. Most taxpayers use this method as it is the default.
Estimation method
You can estimate your current year income and pay provisional tax based on that estimate. This is useful if your income is expected to drop significantly. However, if you underestimate, IRD may charge use-of-money interest on the shortfall.
Ratio method
The ratio method is available to GST-registered taxpayers. IRD calculates a ratio based on your prior year residual income tax divided by your taxable supplies. You apply this ratio to each GST period income to determine provisional tax.
When is provisional tax required?
You must pay provisional tax if your residual income tax is more than $5,000 in the prior year. Provisional tax is essentially paying your expected income tax in advance throughout the year rather than in one lump sum.
IRD-Aligned: Uses current provisional tax rules. For standard balance dates (31 March), due dates are 28 August, 15 January and 7 May. Contact IRD or your tax agent for non-standard balance dates.
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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