ACC levies for sole traders: what you actually pay
How the three ACC levies are calculated for NZ's self-employed, what the 2026/27 rates are, when the invoice arrives, and what CoverPlus Extra does.
Why ACC is separate from income tax
ACC levies are not income tax, but they arrive alongside it. They fund New Zealand's accident compensation scheme and come as a separate ACC invoice after you file your IR3, typically July to October each year.
As a sole trader you're on CoverPlus, ACC's standard scheme for the self-employed. Your levy is based on your self-employed earnings for the year, between a floor (minimum liable earnings) and a ceiling (maximum liable earnings).
The three levies
Every self-employed ACC invoice has three components, all charged per $100 of liable earnings (excl GST; ACC adds GST to its invoice):
1. Work levy: covers injuries at work. The rate is classification-unit (CU) specific: it varies by industry and by the industry's historical claim costs. The published 2026/27 average across all industries is $0.69 per $100 (excl GST). Your actual rate is on your ACC invoice and can be lower or higher.
2. Earners' levy: covers injuries off the job (sport, home, road). The 2026/27 rate is $1.52 per $100 excl GST ($1.75 per $100 incl GST).
3. Working Safer levy: funds WorkSafe NZ. A flat $0.08 per $100 for 2026/27.
All three apply to the same liable earnings base.
Liable earnings: the floor and ceiling
For 2026/27:
Minimum liable earnings (full-time self-employed): $50,501. If your taxable profit is below this and you work 30+ hours a week on average, ACC still levies you on $50,501. If you work fewer than 30 hours a week on average, tell ACC you're part-time, and they'll levy on your actual earnings instead.
Maximum liable earnings: $156,641. Earnings above the cap are not levied, so the maximum annual levy is capped regardless of income.
If you're on CoverPlus Extra, your agreed earnings replace actual earnings for the levy calculation, subject to the $156,641 ceiling.
When the invoice arrives
ACC invoices self-employed people after they file their IR3. The typical window is July to October of the year following the levy year: July–October 2026 for the levy year ended 31 March 2026.
The levy year aligns with the NZ income year (1 April – 31 March). ACC uses your most recently filed income tax return to set the earnings base.
PayWren's Tax Planner shows a levy estimate based on your projected taxable profit, so the invoice shouldn't be a surprise. The estimate is separate from and additional to your tax set-aside.
CoverPlus Extra: agreeing your level of cover
Standard CoverPlus levies you on actual earnings and, if you're injured, pays weekly compensation based on what you earned before injury.
CoverPlus Extra (CPX) lets you agree a fixed level of cover with ACC. If you agree to cover of, say, $60,000, you pay levies on that amount regardless of actual earnings, and your weekly compensation if injured is based on the agreed figure.
Lower agreed cover means a lower levy and lower weekly payout. It's a genuine insurance trade-off: you're buying less cover, not finding a discount (Accident Compensation Act 2001 ss 208–209). Useful when your actual earnings vary significantly year to year, or when you have other income protection in place.
Talk to ACC or a financial adviser before changing your cover level.
Which levies are tax-deductible?
For income tax purposes:
Work levy and Working Safer levy: generally deductible as a business expense (Income Tax Act 2007 ss DA 1–DA 2). Both cover work-related insurance and are incurred in earning your income.
Earners' levy: generally not deductible. It covers non-work injuries (a personal insurance cost rather than a business one).
Confirm the split with your accountant, particularly if your income comes from multiple sources.