Company tax rates in New Zealand
New Zealand companies pay income tax at a flat rate of 28% on their net profit. This applies to all New Zealand-resident companies, regardless of size.
How it works
Unlike personal income tax, which uses a progressive scale (where higher earners pay higher rates), company tax is a single flat rate. This means:
| Net Profit | Tax Rate | Tax Payable |
|---|---|---|
| $50,000 | 28% | $14,000 |
| $100,000 | 28% | $28,000 |
| $250,000 | 28% | $70,000 |
Comparing company tax to personal income tax
If you're a sole trader, you pay personal income tax on your profit at these rates (2025–26):
| Income | Rate |
|---|---|
| $0 – $14,000 | 10.5% |
| $14,001 – $48,000 | 17.5% |
| $48,001 – $70,000 | 30% |
| $70,001 – $180,000 | 33% |
| Over $180,000 | 39% |
If your business profit is above around $70,000, the flat 28% company rate may be lower than the personal rate you'd pay as a sole trader.
Provisional tax
Companies generally pay tax in instalments throughout the year, known as provisional tax. This avoids a large lump-sum bill at the end of the year. IRD will tell you when payments are due based on your previous year's income.
What about GST?
GST is separate from income tax. If your company is GST-registered, you collect and return GST on your taxable supplies — this does not affect your company's income tax calculation.