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Schedular Payments Calculator (IR330C)

Work out your withholding tax for schedular payments as a contractor. Choose the right IR330C rate (10–45%) to avoid an end-of-year tax bill or refund.

By Konstantin IakovlevPublished 28 March 2026Last reviewed
Updated 2026-27 FYData stays on your deviceIRD sourced data

About this calculator

This calculator implements schedular payments WT rates (IR330C) from Inland Revenue (IRD). Last consulted 1 April 2026. Verify the figures yourself by following the link.

Current NZ schedular WT rates (IR330C)

FY 2026-27
  • •Default (most contractors): 20%
  • •Real estate salespeople: 20%
  • •Company directors / board fees: 33%
  • •Sports / entertainment: 20%
  • •Commission salespeople: 25%
  • •Custom election range: 10% – 45%
  • •No IR330C / IRD number: 45% (penalty)

Source: IRD — Schedular payments

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

How schedular payment withholding works (IR330C)

Independent contractors fill out IR330C to choose a withholding tax (WT) rate. The payer deducts that rate from each invoice and pays it to IRD on your behalf.

  1. 1

    Default rates by industry

    Common defaults: 20% (most, incl. real estate salespeople), 33% (company directors), 20% (sports/entertainment), 25% (commission salespeople)

    Default rates apply if you don't elect a custom rate on IR330C.

  2. 2

    Election to lower rate (down to 10%)

    You can elect 10–20% if expected income is below thresholds

    Must have NZ tax number and good compliance history. IRD can decline if risky.

  3. 3

    Withheld amount

    WT = invoice_total × chosen_rate

    WT is a prepayment toward your end-of-year income tax — reconciled at year-end.

  4. 4

    Self-employed must add ACC & ESCT

    Net cash = invoice − WT − GST(if reg) − own_KS − own_ACC

    Unlike employees, contractors pay their own ACC and KS — budget accordingly.

Worked example

Inputs: $10,000 invoice, 20% WT rate

Result: WT withheld = $2,000. You receive $8,000 cash. WT is a credit at year-end.

Frequently Asked Questions

What are schedular payments in NZ?
Schedular payments are payments made to contractors for certain types of work listed in Schedule 4 of the Income Tax Act — including labour-only building work, real estate commission, media and entertainment work, agricultural contracting, and commission selling. Instead of the contractor handling all their own tax, the payer must deduct withholding tax (WT) from each payment at the rate the contractor has chosen on form IR330C, and pass it to Inland Revenue. The contractor still files an IR3 return at year-end: the withheld amounts are a prepayment that credits against their final income tax bill. Schedular payments are different from wages (no PAYE codes, no ACC earner's levy deducted at source) and different from ordinary business invoicing, where no tax is withheld at all. Source: IRD — Schedular payments (ird.govt.nz).
What withholding rate should I choose on my IR330C?
Each activity has a default rate — 20% for most contractor categories (including real estate salespeople), 33% for company directors, 25% for commission salespeople — but you can elect a different rate on the IR330C. The goal is to match your true effective tax rate: too low and you face a terminal tax bill (and possibly provisional tax obligations next year); too high and you give IRD an interest-free loan until your refund. NZ tax residents can elect as low as 10% (15% for non-residents); electing below the standard rate may require IRD approval via a special tax rate certificate if your circumstances do not obviously justify it. A practical approach: estimate your annual profit after expenses, look up the effective tax rate on that profit, and add a small buffer for ACC levies. Source: IRD — Choosing your tax rate (ird.govt.nz).
What happens if I don't give my payer an IR330C?
If you do not provide a completed IR330C (or you provide one without a valid IRD number), the payer is legally required to deduct withholding tax at the no-notification rate of 45% — more than the top personal tax rate of 39%. This is deliberately punitive to encourage compliance. The over-withheld tax is not lost: it still credits against your income tax when you file your IR3, and any excess is refunded after year-end. But you have effectively lent IRD the difference for up to a year. Completing the one-page IR330C when you start with each new payer takes minutes and immediately drops the rate to your elected or default rate. Source: IRD — Schedular payments (ird.govt.nz).
Do I still pay ACC levies and GST on schedular income?
Yes to both, and neither is included in the withholding. ACC: unlike employees, no earner's levy is deducted from schedular payments — instead ACC invoices you directly each year for the Earners' levy plus the Work levy based on your liable income and industry classification, so set aside roughly 2-3% on top of income tax. GST: if your turnover exceeds $60,000 in 12 months you must register, add 15% GST to your invoices, and file GST returns; withholding tax is always calculated on the GST-exclusive amount. Many contractors also voluntarily register below the threshold to claim input credits. Budgeting rule of thumb: from each invoice, put aside your WT shortfall (if any), GST collected, and an ACC allowance before spending the rest. Source: IRD and ACC (ird.govt.nz, acc.co.nz).
Is withholding tax on schedular payments my final tax?
No. Withholding tax is a prepayment, not a final tax. At year-end you file an IR3 return declaring your gross schedular income and deducting your business expenses — vehicle, tools, home office, insurance, accounting fees — which the flat withholding rate knows nothing about. Your actual tax is then calculated on the net profit, and the WT already deducted is credited against it. Most contractors with meaningful expenses receive a refund if they used the default rate; contractors with low expenses or a rate set too low face terminal tax, and if that bill exceeds $5,000 they enter the provisional tax regime for the following year, paying tax in three instalments. This is why rate selection and expense records matter more for contractors than for salaried employees. Source: IRD — Income tax for self-employed (ird.govt.nz).

The schedular payments calculator works out withholding tax (WT) on contractor invoices under the IR330C rules — showing what your payer deducts, what lands in your bank account, and how the withheld tax credits against your end-of-year income tax.

How this calculator works

Contractors doing schedular work — labour-only building, real estate commission, media, agriculture, and many other categories — receive payments with tax withheld at source. You choose your rate on form IR330C: each industry has a default (20% for most, including real estate salespeople; 33% for company directors; 25% for commission sales), and you may elect a custom rate as low as 10% if your circumstances justify it, or higher to avoid a year-end bill. If you fail to supply an IR330C or an IRD number, the payer must deduct a punitive 45%. Crucially, WT is not a final tax: it is a prepayment credited against your income tax when you file your IR3, so choosing a rate close to your true effective rate is what prevents both nasty terminal-tax bills and interest-free loans to IRD. Remember GST is separate — if registered you add 15% to invoices, and WT applies to the GST-exclusive amount.

Common IR330C withholding rates (FY 2026-27)

Most schedular contractors, incl. real estate salespeople20%
Company directors / board fees33%
Commission salespeople25%
Sports and entertainment20%
Custom election range10% - 45%
No IR330C or no IRD number45% (non-declaration rate)
Year-endWT credits against your IR3 income tax

Worked Examples

$10,000 invoice from a labour-only contractor on the 20% default rate

$2,000 withheld — $8,000 paid to you, with the $2,000 credited at year-end.

  1. Withholding: $10,000 × 20% = $2,000
  2. Cash received: $8,000
  3. At year-end the $2,000 offsets your assessed income tax on the IR3
  4. Budget separately for ACC levies and KiwiSaver — contractors pay their own

Real estate salesperson: $6,000 commission at the 20% default, GST-registered

WT $1,200 on the GST-exclusive amount — $4,800 plus GST lands in the account.

  1. Invoice: $6,000 + 15% GST = $6,900
  2. Withholding on the GST-exclusive amount: $6,000 × 33% = $1,980
  3. Received: $6,900 − $1,980 = $4,920 (of which $900 is GST you hold for IRD)
  4. Net working cash: $4,020

Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.

Last reviewed:

Official Sources

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