Understanding the income tax estimate on your dashboard
What the tax set-aside panel shows, how it's calculated, and why it's an estimate.
What you see on the dashboard
The amber panel on your dashboard shows two numbers:
Net GST to IRD — GST collected on paid invoices minus GST credits from expenses, for the current NZ financial year (1 April – 31 March).
Income tax estimate — a rough provision based on your net profit (received revenue minus expenses) at NZ individual progressive tax rates.
How income tax is calculated
PayWren uses the NZ individual tax rates applied to your net profit (revenue received minus expenses recorded):
$0 – $14,000 at 10.5% $14,001 – $48,000 at 17.5% $48,001 – $70,000 at 30% $70,001 – $180,000 at 33% Over $180,000 at 39%
Why it's an estimate
PayWren only knows about income and expenses you've entered. It doesn't know about: other income sources, KiwiSaver, student loan repayments, family scheme credits, depreciation, home office deductions, or vehicle expenses. Your actual liability will be different.