What is withholding tax on schedular payments?

Some clients are required to deduct a percentage of your payment and send it to IRD on your behalf. This is withholding tax. It counts towards your annual income tax bill.

How does withholding tax affect my annual tax return?

Withholding tax paid during the year is credited against your total tax bill. If too much was withheld, you get a refund. If not enough was withheld, you pay the difference.

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Withholding Tax Calculator

Calculate withholding tax on schedular payments. See tax withheld, net received, and an annual projection versus estimated tax.

If a client deducts withholding tax from your payments, it can be confusing to work out what you actually receive and how it affects your tax bill.

Enter your invoice amount, choose your activity and see the breakdown.

Rates last reviewed: 1 September 2026. Estimates only. Talk to us before making decisions based on these numbers.

Invoice amount (excl. GST)

Activity type

GST registered

Expected annual income (excl. GST)

Results

GST on invoice (15%)$750.00

Gross invoice$5,750.00

Tax withheld (15%)$750.00

Net received$5,000.00

Annual projection

Estimated annual tax$16,277.50

Withholding for the year$12,000.00

Tax to pay at year end$4,277.50

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Withholding Tax Calculator

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Questions

What is withholding tax on schedular payments?

How does withholding tax affect my annual tax return?