Gig Economy Income Tax
Gig economy income tax in New Zealand is income tax on net profit from short gigs, apps, and cash jobs. Inland Revenue treats that work as self employment. It is not a secondary PAYE code on the cafe wage.
You use your individual IRD number. You file an individual income return. You claim expenses for that business activity. The app collecting GST on a ride does not file your IR3 for you.
Trap: cash Uber is not a hobby wage
Forum threads still dump Uber Eats into a secondary income box, or skip small weeks as coffee money. Inland Revenue’s IR3 list includes self employment and under the table cash jobs. The Individual income tax return guide IR3G 2026 lists cash jobs or under the table payments. Calling it a side hustle does not move it onto a PAYE tax code.
What gig work is for tax
business.govt.nz working multiple jobs: gig workers do multiple short term jobs. The page names Uber and Fiverr as the old platform picture, then says casual short term jobs get called gigs too. The same rules that apply to gig workers apply to contractors, freelancers, self employed people, and casual workers.
Inland Revenue’s self employed page: self employed people carry out business activity on their own. That includes contracting, working as a sole trader, and small business owners. Usually you can start without following any formal or legal set up tasks. You pay tax on net profit by filing an individual income return. Filing clocks sit on the Self Employed Tax hub.
business.govt.nz: many people taking on casual or gig work are sole traders. You do not need to do anything formal or legal to set up as a sole trader. For tax purposes the rules are the same as those for contractors or self employed people. You normally use your personal IRD number for income tax and GST. A New Zealand Business Number is optional. It does not replace the IR3.
Official starting point
Inland Revenue’s IR3 page: you need to complete an IR3 if you received more than $200 (before tax) in income it has not been told about, even for part of the year. The tax year is 1 April to 31 March. Send the completed return by 7 July unless you have a tax agent or an extension of time. Self employed people are taxed as individuals. Small weeks still count from day one if that $200 test is met.
The four clocks on one gig
PAYE job, IR330C, or a plain invoice
| How the money arrives | Income tax treatment |
|---|---|
| Cafe wage or other salary | Taxed before you get paid. Use the right tax code, including SL if you have a student loan. Secondary codes are for a second wage, not for app profit. |
| Labour hire or listed schedular activity | business.govt.nz: the payer uses IR330C. Tax code WT. You choose a rate from 10% to 100%. You still file an IR3. You still pay ACC, KiwiSaver, student loan, and child support yourself. |
| Uber, DoorDash, Fiverr, cash lawns, Trade Me resale as a business | Usually not taxed before you get paid. Inland Revenue: self employment or cash jobs go on the IR3. Net profit after expenses. Add self employment in myIR. |
| Listed services through an online marketplace | Income tax still on net profit. GST: the marketplace collects 15% from 1 April 2024. You give them your name, IRD number, and GST status. |
Inland Revenue’s tax rates for individuals page from 1 April 2025: 10.5% on 0 to $15,600, then 17.5%, 30%, 33%, and 39% from $180,001. Gig profit sits on leftover bands once the cafe wage has used the lower ones. Do not run 10.5% on the invoices as if they were your only dollars. Set aside steps sit in how much tax to set aside NZ sole trader.
business.govt.nz: if the activity is not on the IR330C, or the payer does not deduct tax, set money aside from each pay. If the payer is required to withhold and refuses, tell Inland Revenue. Vehicle and home office claims for the delivery car sit in deductible expenses home office vehicle.
Pull highlight: Inland Revenue, more than $200 (before tax) in income it has not been told about, even for part of the year. Self employment, Airbnb, Bookabach, and under the table cash jobs are on that IR3 list.
Listed services GST is not the IR3
Inland Revenue’s 2022 digital platforms consultation is now live law for GST on listed services. Inland Revenue’s GST for drivers, deliverers and accommodation owners page: if you perform listed services in New Zealand using an online marketplace, the marketplace collects and returns GST on the sale. Listed services are ride sharing, food and beverage delivery, and short stay and visitor accommodation. Closely connected fees on the same listing, such as holiday rental cleaning, are in too.
If you are not GST registered, from 1 April 2024 the marketplace collects 15%, pays 6.5% to Inland Revenue, and passes 8.5% to you. Inland Revenue: that flat rate credit is for you to keep. You can choose to include it as assessable income in your income tax return, or not. It is not automatically a tax free bonus. If you are GST registered, you include marketplace listed services as a zero rated supply, you can still claim GST on costs, and if you receive a flat rate credit by mistake you return it as a debit adjustment. Penalties may apply if you keep taking it. The GST walkthrough is Uber and gig economy GST rules.
The marketplace rules do not apply if the app is supplying the service itself and hires you as an employee or independent contractor. Check with the platform. Services you sell on your own website, by phone, or in person stay on normal GST rules. Registration steps: register for GST in NZ.
Inland Revenue’s information reporting overview: New Zealand tax resident online marketplaces must collect and report seller information, then file by 7 February each year and send sellers a copy. Relevant services for that report include short stay accommodation, ride sharing, food and beverage delivery, and graphic and web design. That is the platform’s filing duty. Your income tax still sits on the IR3.
Hobby talk versus cash jobs on the IR3
GST hobby tests live in taxable activity hobby vs business. Income tax still wants the cash on the IR3 when Inland Revenue has not been told about it. Inland Revenue’s I’ve been asked to complete an IR3 page lists under the table cash jobs next to self employment and Airbnb. The Individual income tax return guide IR3G 2026 lists cash jobs or under the table payments in the same breath as self employed income.
Add self employment in myIR when the gigs start. Inland Revenue: even if you stop that income type during the year, you still complete an IR3 at the end of that year. Wait until June to file if wage, benefit, interest, or KiwiSaver or PIE files are still landing. IR3 steps: IR3 filing checklist for sole traders.
Use case: Auckland delivery, labelled
Situation: PAYE supermarket job plus weekend food delivery through an app. The app collects GST on listed services. The driver is not GST registered.
Action: add self employment in myIR. File an IR3 on net profit after vehicle costs. Do not use a secondary wage code for the app. Decide whether to include the 8.5% flat rate credit as assessable income. Keep cash and non cash records for 7 tax years.
Use case: Wellington designer, labelled
Situation: Fiverr and local cash logos. No labour hire. No IR330C. First year in their own name.
Action: set money aside. Inland Revenue: first year is usually a lump sum at year end, then provisional tax may start. File by 7 July. Graphic design is not a listed service for the 15% app GST rules. A New Zealand tax resident marketplace may still report graphic and web design as a relevant service. Normal GST registration still follows the $60,000 taxable activity test.
Caution: Afirmo’s $60,000 first year mix
Afirmo’s gig FAQ still talks about provisional tax in the first year unless tax liability exceeds $60,000. Inland Revenue’s tax rates for businesses page: first year is generally a lump sum, then provisional tax. $60,000 is the GST registration test on turnover, not that first year income tax lump. First year timing: first year self employed no provisional myth.