A trusted business knowledge graph and discovery engine designed to verify and showcase New Zealand enterprises through data-driven authority scoring and intelligent content visibility.

How many provisional tax instalments are there?

Under the standard method, there are three instalments per year. The due dates are typically 28 August, 15 January, and 7 May. Each instalment is one-third of your previous year's tax.

What is residual income tax?

Residual income tax is the amount of tax you still owe for the year after all PAYE and other withholding taxes have been deducted. It's essentially the tax on your income that wasn't covered by PAYE.

What happens if I underpay provisional tax?

If you underpay, you'll be charged use-of-money interest (UOMI) on the shortfall. The interest rate is set by the IRD and changes periodically. If you overpay, the IRD pays you interest.

Can I use the GST ratio method?

Yes. If you're GST-registered and your residual income tax is between $5,000 and $150,000, you can use the ratio method. This pays provisional tax in 12 monthly instalments based on your GST taxable supplies.

How do I estimate my provisional tax?

The simplest method is the standard method: each instalment is one-third of your previous year's residual income tax. You can also use the estimation method if you expect your income to change significantly.

Business Tools/Provisional Tax Calculator

2025/26 · $5,000 Threshold

Provisional Tax Calculator

Check if you need to pay provisional tax and estimate your three instalment amounts and due dates.

2025/26 thresholds

Last year's residual income tax (tax to pay)

Provisional tax doesn't apply

Your residual income tax is below the $5,000 threshold. No instalments required.

Rates valid for 2025/26 tax year · Last reviewed August 2025

IRD — Provisional tax

1,200+

Join 1,200+ verified local businesses

Get found by 50,000+ monthly searchers looking for exactly what you offer.

List your business on Localist See plans

What is provisional tax?

Provisional tax is a way of paying your income tax in instalments throughout the year, rather than in one lump sum at the end. It applies to self-employed people, contractors, and anyone with significant income that doesn't have PAYE deducted at source.

You need to pay provisional tax if your residual income tax (the tax you still owe after PAYE and other deductions) for the previous year was more than $5,000.

Provisional tax is typically paid in three instalments. The standard due dates are 28 August, 15 January, and 7 May. You can also use the ratio method (12 monthly payments) or the estimation method if you prefer.

If you underpay provisional tax, you may be charged use-of-money interest (UOMI). If you overpay, you'll receive interest from the IRD.

Provisional Tax Calculator frequently asked questions

You need to pay provisional tax if your residual income tax (tax to pay after PAYE and other deductions) for the previous year was more than $5,000. Below this threshold, you don't need to pay provisional tax.