Tax rates are different for individuals and companies. Rates can also change if legislation changes.

For small businesses, the rates for income tax vary depending on which type of business (sole trader, partnership, and company) you are operating:

  • A sole trader is taxed at the individual tax rates.
  • Partnership income is distributed to the partners, who each pay tax on their own share.
  • Company profits are taxed at the rate of 28 cents in the dolla
    • 28 cents in the dollar for income years 2012 and later.

Income tax rates for individuals, for every $1 of taxable income:

Excluding ACC earners’ levy:

  • up to $14,000 – 10.5 cents
  • from $14,001 to $48,000 – 17.5 cents
  • from $48,001 to $70,000 – 30 cents
  • $70,001 and over – 33 cents

PAYE rates including ACC earners’ levy:

  • up to $14,000 – 11.95 cents
  • from $14,001 to $48,000 – 18.95 cents
  • from $48,001 to $70,000 – 31.45 cents
  • $70,001 and over 34.45 – cents

ACC

  • The ACC Earner Levy is $1.45 per $100 earned
  • The Minimum Liable Earnings is $29,640
  • The Maximum Liable Earnings is $120,070

If you need help in understanding this or any other tax topic and how it relates to your business, please contact us.