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 dollar for income years 2012 and later.
- 30 cents in the dollar for income years 2009 to 2011.
- 33 cents in the dollar for income years 2008 and earlier.
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 – 12.20 cents
- from $14,001 to $48,000 – 19.20 cents
- from $48,001 to $70,000 – 31.70 cents
- $70,001 and over 34.70 – cents
If you need help in understanding this or any other tax topic and how it relates to your business, please