Question 1

Do Uber and Ola drivers need to register for GST in NZ?

Accepted Answer

Since 1 April 2024, ride-share platforms (Uber, Ola, Bolt, Didi) must collect 15% GST on every fare regardless of whether the driver is registered. The platform sends GST to IRD. If you earn over NZ$60,000 in driver income per 12 months you must still register and submit your own returns. Under $60k registration is optional. Registered drivers can claim back input GST on car expenses, petrol, vehicle servicing.

Question 2

How is ride-share income taxed for income tax?

Accepted Answer

Ride-share income is self-employed business income — report it in your IR3 'self-employed' or IR3B (if you also have a job). You can deduct vehicle expenses, fuel, insurance, depreciation, platform fees, and IRD mileage rate (alternative to actual costs). The net profit is taxed at your marginal rate (10.5%, 17.5%, 30%, 33%, or 39%) plus the ACC earner levy.

Question 3

What is the IRD mileage rate for ride-share 2027?

Accepted Answer

For 2027 (1 April 2026 – 31 March 2027), IRD mileage rates are: Tier 1 (first 14,000 km) NZ$0.86/km for petrol/diesel and NZ$0.85/km for electric; Tier 2 (>14,000 km) NZ$0.31/km petrol/diesel and NZ$0.21/km electric. Drivers can choose IRD mileage rate OR actual costs (whichever is more), but must use the same method consistently across the tax year.

Question 4

Do I pay ACC levy as a ride-share driver?

Accepted Answer

Yes — as self-employed, you pay the ACC Earner Levy (~1.67% in 2027) on your net business income, plus the Work Levy specific to driver classification (~$0.85 per $100 of liable income). ACC sends an invoice annually based on your IR3 net income. The ACC levies are separate from your income tax — total ACC for a NZ$40,000 ride-share driver is ~$1,008/year.

Question 5

Can I claim my car as a business expense?

Accepted Answer

Yes — you can deduct the business-use portion of vehicle costs. Two methods: (1) IRD mileage rate × km driven for ride-share; OR (2) Actual costs (fuel, registration, WoF, repairs, depreciation, insurance) × business-use percentage. The business percentage is km driven ride-share ÷ total km. Keep a logbook for 90 days to establish the percentage. Once set, you can use it for 3 years.

Question 6

Should I trade as a sole trader or set up a company?

Accepted Answer

For most ride-share drivers, sole trader (self-employed) is best — simple, low compliance cost, and you can claim small business deductions directly. A company makes sense only if: you earn over NZ$80,000/year and want to retain profits in the company at 28%; you have multiple cars/drivers; you want limited liability. Talk to an accountant before incorporating — set-up costs $1,000+ and ongoing annual fees.

NZ Ride-Share Driver Tax 2027 Calculator (Uber / Ola / Bolt)

How NZ ride-share driver tax works in 2027

IRD mileage rate 2027 — the simple expense method

Example: NZ$50,000 driver income, 18,000 km

How to use this ride-share tax calculator