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Tax deductions by occupation in New Zealand

What the work costs is much the same wherever you do it. How you claim it is not — so each guide below pairs the spending with the rules that apply in New Zealand. You report through an IR3 individual return, plus GST returns once registered.

Income tax in New Zealand

Self-employed income is declared in your individual return and taxed at the personal rates. There is no tax-free threshold — tax applies from the first dollar — and once your tax bill passes the threshold you move onto provisional tax, paying in instalments through the year.

GST in New Zealand

Rate
15%
Registration
NZD 60,000 turnover/yr
Returns
Monthly, 2-monthly or 6-monthly

This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with Inland Revenue or a registered tax adviser, and keep records to back up every claim.

How New Zealand treats the big three

Vehicle and travel

Vehicle costs are claimed on the business-use share, using either a logbook or Inland Revenue’s kilometre rates.

Home workspace

The business-use share of home costs is claimable, worked out from the area used for work or using the square-metre rate option.

Equipment and higher-cost gear

Assets over the low-value threshold are depreciated at Inland Revenue’s rates rather than claimed in full up front.

Worth knowing in New Zealand

Provisional tax catches people in year two. Your first year has no instalments, then the next year you can face both the previous year’s bill and the new year’s instalments at once — so it is worth setting money aside before it arrives.

Self-employed tax in New Zealand — common questions

When do I need to register for GST in New Zealand?

Once your turnover passes the registration threshold in any 12-month period, or if you expect it to. Below that, registering is optional — and worth weighing, since it lets you claim GST on business purchases but adds regular returns. This is general information, not personal tax advice — what you can claim depends on your circumstances, so check with Inland Revenue or a registered tax adviser, and keep records to back up every claim.

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