Side Hustle Income Tax Calculator NZ 2026/27

Related: Are you owed a tax refund? A part year, a second job on a secondary code, or the wrong tax code all leave too much PAYE deducted. Work out what IRD owes you.
Quick answer: Yes, side hustle income is taxable in New Zealand from the first dollar. It's added to your main income and taxed at your marginal rate, the rate on your top combined dollar, not a flat rate. You'll usually also owe 1.75% ACC earner's levy on the extra income, and once your side hustle turnover passes $60,000 in any rolling 12-month period you must register for and charge GST. Enter your numbers below to see exactly what to set aside.

This calculator works out the real tax position on a New Zealand side hustle, whether that's freelancing, selling online, driving for a rideshare app, tutoring, renting out a room, or any other extra income alongside a main job. Enter your main income, your side hustle income for the year, and any deductible expenses, and it works out your side hustle profit, the extra income tax that profit creates at your marginal rate, the 1.75% ACC earner's levy on that profit up to New Zealand's combined earnings cap, and roughly how much to set aside from every payment so there's no nasty surprise at tax time. It also checks your side hustle turnover against the $60,000 rolling 12-month GST registration threshold, so you know if or when you need to register for and start charging GST. The calculator updates instantly as you type, with no need to press a button. It's built for anyone earning extra income on top of salary or wages who wants a clear, defaults-matched answer to "do I actually pay tax on this, and how much should I keep aside", rather than guessing or hoping Inland Revenue doesn't notice. Figures use 2026/27 income tax brackets and ACC rates and are indicative only, so confirm your own position with Inland Revenue or a tax agent before filing.

Calculate.co.nz is proud to be partnered with realtor.co.nz, a trusted resource for navigating the New Zealand property market. Their Helpful Articles section offers clear, well-structured insights across buying, selling, and building, making complex real estate topics more accessible. With a focus on up-to-date guidance and practical knowledge, they empower Kiwis to move forward with clarity and confidence in a constantly evolving property landscape.
Calculate.co.nz partner: realtor.co.nz
Updated  Current rates and legislation applied.
Verification & Methodology
Income tax: 2026/27 brackets of 10.5% to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, and 39% above that, per the Income Tax Act 2007. Extra tax is calculated as tax on (main income + side profit) minus tax on main income alone, so it reflects the true marginal impact of the side hustle, including any bracket it pushes you into.
ACC earner's levy: 1.75% for the 2026/27 year, capped at maximum liable earnings of $156,641 across all income sources combined, per the Accident Compensation Act 2001 and Inland Revenue's published ACC levy rates.
GST registration threshold: $60,000 rolling 12-month turnover, per section 51 of the Goods and Services Tax Act 1985.
Last verified: 1 April 2026, against current Inland Revenue and ACC published rates.
Source data: Inland Revenue, ACC, and the GST Act 1985.
$
$
$
$4,077.00
to set aside for income tax and ACC on your side hustle
Side hustle profit$12,000.00
Extra income tax$3,867.00
ACC earner's levy (1.75%)$210.00
Set-aside rate34.0%
Net from side hustle$7,923.00

Your side hustle turnover of $15,000.00 is $45,000.00 below the $60,000 rolling 12-month GST registration threshold, so you don't need to register for GST yet. Track your turnover over any 12-month period, not just a tax year, since you must register as soon as you pass the threshold.

Estimate only, based on 2026/27 income tax brackets and ACC rates. It does not include a self-employed ACC work levy, student loan repayments, or KiwiSaver contributions, which may also apply. This is general information, not tax advice.

What to do next: Once you know roughly what to set aside, the easiest way to stop thinking about it is to automate it. A service like Hnry deducts your income tax, ACC levy and (once you're registered) GST from every side hustle payment as it lands, then files and pays Inland Revenue on your behalf, so the number above is already set aside before you can spend it.

How this calculator works

The calculator first finds your side hustle profit by taking your side hustle income and subtracting your deductible expenses, because you're taxed on profit, not on turnover. It then works out the extra income tax by comparing the income tax on your combined income, main income plus side profit, with the income tax on your main income alone. The difference is the tax caused specifically by the side hustle, because that profit sits on top of your main income and is taxed at your marginal rate, the rate that applies to your highest dollars, which can mean part of it lands in a higher bracket than your main job alone would suggest. The ACC earner's levy is worked out the same way: 1.75% of the side profit, but only up to New Zealand's combined maximum liable earnings of $156,641 across all income sources for the 2026/27 year, so if your main income is already at or near the cap, little or no extra levy is added.

Worked example

Say your main job pays $75,000 a year, your side hustle brings in $15,000 of turnover, and you have $3,000 of deductible expenses. Your side hustle profit is $12,000. Income tax on $75,000 alone is $14,720.50. Income tax on the combined $87,000, main income plus profit, is $18,587.50, because the extra income straddles the $78,100 threshold and part of it is taxed at 33% instead of 30%. The difference, $3,867.00, is the extra income tax your side hustle creates. Your combined income of $87,000 is still well under the $156,641 ACC cap, so the ACC earner's levy on the $12,000 profit is a straightforward 1.75%, or $210.00. In total you should set aside $4,077.00, which is 34.0% of your side hustle profit, leaving $7,923.00 as your real take-home from the side hustle. Because your side hustle turnover of $15,000 is well under the $60,000 GST threshold, you don't need to register for GST on this income yet.

Is side hustle income actually taxable in New Zealand?

Yes, and this is the single most common misunderstanding. New Zealand has no general tax-free threshold for casual, part-time or "just a side thing" income the way some other countries do. If you're earning money with an intention of profit, whether from freelance work, selling things you've made or bought to resell, driving for a platform, tutoring, or renting out a spare room, that income is taxable from the very first dollar. The exception is a genuine one-off private sale, such as clearing out your own used furniture on an online marketplace, which is not a taxable activity because there's no repeated intention to profit. Once the activity is regular, organised, or run with a business-like intention to make money, Inland Revenue treats the profit as taxable income regardless of how small or casual it feels.

Hobby or business: what Inland Revenue looks at

There's no single dollar figure that turns a hobby into a business for tax purposes. Instead, Inland Revenue weighs up several factors together: whether you intend to make a profit rather than just cover costs, how often and regularly you carry out the activity, whether you operate in a business-like way, for example by invoicing, advertising, or keeping records, and the overall scale of what you're doing. A person who occasionally bakes a cake for a friend for petrol money is very different from someone taking regular orders through an Instagram page with set prices and a waiting list. If in doubt, it's safer to assume the income is taxable and keep records from day one than to find out later that Inland Revenue disagrees.

What counts as a deductible expense

You're only taxed on profit, so legitimate costs of earning the side income reduce what's taxable. Common deductible expenses include materials, stock or ingredients, a fair portion of home office running costs if you work from home, business-related vehicle costs claimed at the IRD kilometre rate, software subscriptions and website or listing fees, marketing and advertising, and payment platform or marketplace transaction fees. Costs need to be genuinely related to earning the side income rather than personal expenses, and mixed-use costs, such as a phone used for both personal and side hustle purposes, should only be claimed for the business-use portion.

ACC on side hustle income

This is the part people most often miss. ACC's earner's levy, 1.75% for 2026/27, is charged on your total liable income across all sources, employment and self-employment combined, up to the maximum liable earnings of $156,641. If you're already an employee, your employer deducts the levy from your PAYE automatically, but that only covers your salary, not your side income. Once you file your return, ACC can invoice you directly for the earner's levy owing on the extra income, up to whatever headroom is left under the combined cap. Separately, fully self-employed side hustlers with no PAYE job also pay an ACC work levy set by their industry's risk classification, which sits on top of the earner's levy and is not included in this calculator.

GST and your side hustle

GST is a turnover test, not a profit test, and it runs on a rolling 12-month basis rather than resetting each tax year. As soon as your side hustle's total sales pass $60,000 in any trailing 12 months, you're required to register for GST with Inland Revenue under the Goods and Services Tax Act 1985. Once registered, you must charge GST on your sales, generally by adding 15% or treating your prices as GST-inclusive, and file regular GST returns, but you also get to claim back GST on your business expenses. Voluntary registration below the $60,000 threshold is allowed and can suit side hustlers with significant upfront costs, though it does add compliance work. Watch the rolling window carefully: a strong three or four months can tip you over $60,000 well before a full year has passed.

What this calculator assumes

  • Your main job income is taxed through PAYE and the side hustle profit is genuinely additional income on top of it.
  • The 2026/27 income tax brackets and the 1.75% ACC earner's levy, capped at $156,641 of combined liable earnings.
  • The side hustle turnover figure is GST-exclusive and represents total sales, not profit, for the GST threshold check.
  • It does not include a self-employed ACC work levy, KiwiSaver contributions, or student loan repayments, all of which may also apply depending on your circumstances.
  • Results are indicative and rounded for display; confirm your actual liability with Inland Revenue or a tax agent.

Who this calculator is for

This is built for anyone in New Zealand earning income alongside a main job or benefit, including freelancers and contractors, online sellers, rideshare and delivery drivers, tutors, market stallholders, content creators, and people renting out a room or a caravan on the side. It's equally useful for someone just starting out who wants to know if they need to worry about tax at all, and for someone with an established side hustle who wants to check their set-aside percentage or work out when GST registration will bite.

Related calculators

Official NZ sources

This calculator is built from primary New Zealand sources. Always confirm current figures against the official source for your situation:

Frequently asked questions

Do I have to pay tax on side hustle income in New Zealand?

Yes. Inland Revenue does not have a tax-free threshold for casual, hobby or side income. If you earn money from freelancing, selling goods, driving, renting out a room, or any other side activity carried out with an intention of profit, it is taxable from the first dollar. Side income is added to your main income and taxed at your marginal rate, not at a separate flat rate.

How much tax will I pay on my side hustle?

Your side hustle profit is taxed at your marginal rate, meaning the rate that applies to your top dollar of combined income once the profit is added on top of your main income. It is not necessarily the same rate you pay on your main job, because the extra income can push part or all of it into a higher tax bracket. This calculator finds the exact extra tax by comparing tax on your combined income with tax on your main income alone.

Do I pay ACC levies on side hustle income?

Usually yes. ACC's earner's levy of 1.75% for 2026/27 applies to your total liable income from all sources combined, up to a cap of $156,641. If your main job's PAYE already covers the levy on your salary, you can still owe additional earner's levy on your side income once you file, up to the combined cap. Self-employed side hustlers with no main job also pay a separate ACC work levy set by their industry classification, which is not covered by this calculator.

When do I need to register for GST on a side hustle?

Once your side hustle's turnover, meaning total sales, not profit, passes $60,000 in any rolling 12-month period, not just a calendar or tax year, you must register for GST with Inland Revenue under section 51 of the Goods and Services Tax Act 1985. You can also register voluntarily below that threshold. Once registered you must charge GST on your sales and file GST returns, but you can also claim GST back on your business expenses.

What expenses can I deduct from side hustle income?

You can generally deduct costs directly related to earning the side income, such as materials and stock, a portion of home office costs, business-related mileage at the IRD kilometre rate, software subscriptions, marketing, and platform or transaction fees. You are taxed on profit, income minus expenses, not on turnover, so keeping receipts and records is worthwhile.

Is my side hustle a hobby or a business for tax purposes?

Inland Revenue looks at factors such as whether you intend to make a profit, how regularly you carry out the activity, whether you operate in a business-like way, for example invoicing, marketing and record keeping, and the scale of the activity. A genuine one-off private sale, such as selling an old couch, is not taxable, but a repeated or organised activity carried out with an intention of profit generally is, even if it started as a hobby.

Do I need to file a tax return for side hustle income?

In most cases, yes. If your side income is not taxed at source, for example through PAYE or resident withholding tax, you will usually need to file an IR3 individual tax return to declare it and pay any tax owing. If your side income is subject to schedular payments with withholding tax deducted by the payer, you typically still need to file to reconcile the correct amount.

What happens if I do not declare side hustle income?

Inland Revenue receives information from banks, payment platforms and third parties, and can identify undeclared income. Not declaring side income can lead to back taxes, use-of-money interest, and shortfall penalties. It is far cheaper to set aside tax as you go than to face a bill with interest and penalties later.