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New Zealand tax tool

Contractor vs Employee NZ Calculator

Compare your estimated take-home income as an employee versus a contractor in New Zealand. This tool gives a simple side-by-side estimate including income tax, ACC, KiwiSaver, expenses, and student loan deductions.

NZ-focused estimate. Not financial advice.

Employee vs contractor estimate

Enter one annual income figure and compare PAYE employment with contracting after expenses.

Live toolNZD
Uses TaxPop's year-based personal tax brackets with a simple 1.75% ACC estimate. Contractor ACC varies by industry, so this v1 keeps the ACC logic intentionally simple.
Inputs
Employee take-home income$0.00$0.00 weekly
Contractor take-home income$0.00$0.00 weekly
Difference$0.00Both options are very close.
ItemEmployeeContractor
Take-home comparison
Employee net income$0.00
Contractor net income$0.00
Tax + ACC
Expenses / deductions
Net income
Employee KiwiSaver is deducted automatically. Contractor saving is voluntary and included here for a fair cash comparison.
Tax-code note: this page uses annual taxable-income estimates rather than payroll tax codes. Tax codes mainly affect how PAYE is withheld during the year; the annual comparison is based on the selected tax year's personal tax brackets, student loan setting, ACC estimate, KiwiSaver, contractor saving, and expenses.
GST threshold note: contract revenue is at or above $60,000.00. GST registration may be required. GST is not included in take-home income and should be budgeted separately.
Decision insight

Income difference is small. Consider flexibility, risk, and lifestyle factors.

How to read the comparison

Employment usually means PAYE is handled automatically, income is more predictable, and paid leave may be available. Contracting can increase flexibility and let you claim business expenses, but you need to manage tax, ACC, admin time, and income gaps yourself.

For a deeper contractor view, try the Self-Employed Tax Calculator. For salary and wage detail, use the PAYE Calculator.

Employee KiwiSaver is deducted automatically. Contractor retirement saving is voluntary, so this page includes a matching contractor saving input to make the cash comparison fairer.

Calculation notes

Tax code: this page does not ask for a tax code because it is comparing annual outcomes, not recreating a payroll run. Tax codes can change PAYE withholding during the year, but the final annual income tax usually follows the personal tax brackets for the year.

Rates: income tax brackets, student loan settings, ACC caps, and KiwiSaver options are read from TaxPop's shared tax-year data where available. The page-specific assumptions are the simple 1.75% ACC estimate and the decision comparison logic.

GST: GST is shown as a threshold note only. It is not added to take-home income because GST collected from customers is usually paid to IRD after GST credits are considered.

Employee vs contractor factors

Employee

  • PAYE handled automatically
  • paid leave
  • predictable income
  • KiwiSaver contributions

Contractor

  • flexibility
  • can claim expenses
  • potential higher income
  • more control

Contractor downsides

  • no paid leave
  • must manage tax and ACC
  • income variability

Disclaimer

This calculator provides estimates only. Tax, ACC, KiwiSaver, and student loan deductions may vary depending on your situation. For accurate advice, consult a professional.

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