GST threshold calculator: do you need to register for GST?
You must register for GST when your sales in the last 12 months, or the sales you expect in the next 12, pass $60,000, and apply within 21 days. With $52,000 in the last 12 months and $68,000 expected from 1 October 2026, you are liable from that day and must apply by Thursday 22 October 2026.
Worked out for the example. Change the boxes to make it yours.
If you expect to pass $60,000 only because you are winding down or closing, or selling equipment to replace it, the next 12 months do not make you register (s 51(1)(c) and (d)).
| Sales October 2025 to September 2026 | $52,000 |
|---|---|
| Expected October 2026 to September 2027 | $68,000 |
| The threshold: more than | $60,000 |
| Liable to register at | The start of Thursday 1 October 2026 (the next 12 months) |
| Apply to Inland Revenue by | Thursday 22 October 2026 |
| Once registered: a $1,000 invoice becomes | $1,150 with 15% GST |
- Once you are registered, add 15% GST to your invoices, give tax invoices, and file GST returns monthly, two-monthly or, with sales under $500,000, six-monthly. You can also claim the GST on your business costs.
- Registration takes effect from a date Inland Revenue decides; if you never apply, it can backdate it to the day you became liable (s 51(4)).
- Sales means everything you charge for in your business, before GST: invoices for work, and goods you sell. Wages from a job are not part of it, and nor is rent from a home you let to tenants, which is an exempt supply.
- The Act's test is more than $60,000 (s 51(1)); Inland Revenue's page says at least $60,000. The calculator follows the Act, so exactly $60,000 is not over the threshold.
Free on every plan. Your account adds this client to Your Timesheets as contract work, after asking, so the hours behind each invoice are on record. Invoices with GST are on the Career and Timesheets plan or On the Move.
The two tests, month by month
Section 51(1) of the Goods and Services Tax Act 1985 makes you liable to register in either of two ways. Looking back: at the end of any month, if that month and the 11 before it add up to more than $60,000. Looking forward: at the start of any month, if there are reasonable grounds to believe that month and the 11 after it will pass $60,000. It is a rolling 12 months, not the tax year, so it is checked again every month. The Act's words are more than $60,000, so exactly $60,000 does not make you liable, although Inland Revenue's own page puts it as at least $60,000; the calculator follows the Act. The forward test is the one people miss: sign a 12-month contract worth $6,000 a month and you are liable from the start of that month, before you have invoiced a dollar.
What counts as sales
The total is the value of what you supply in your business, before GST: invoices for work and goods you sell. Salary or wages from a job are not part of it, because employment is not a taxable activity, and nor are exempt supplies such as rent from a home you let to tenants or interest. A hobby is not a taxable activity either. If you pass $60,000 only because you are closing down or selling equipment to replace it, the forward test does not apply, and if a one-off spike pushed the last 12 months over, Inland Revenue can agree you need not register when the next 12 months will stay under. Our guide to contractor tax covers GST alongside income tax and ACC.
The 21 days to apply
Once you are liable you must apply to Inland Revenue within 21 days (section 51(2)). The day you became liable is not counted (Legislation Act 2019, section 54), so liable at the end of 30 September means applying by 21 October, and liable at the start of 1 October means by 22 October. If the last day is not a working day, such as a weekend, a public holiday or a day from 25 December to 2 January, the next working day will do (section 55), and the calculator moves the date for you. If you never apply, Inland Revenue can register you from the day you first became liable, which can mean GST owed on invoices you have already been paid for without it.
What changes once you are registered
You add 15% GST to your prices, give tax invoices, and file GST returns monthly, two-monthly or, with sales under $500,000, six-monthly. In return you can claim the GST on your business costs. You can also register by choice below $60,000. Our guide to invoicing as a contractor shows what a tax invoice must say, and the article on side hustle tax covers your first tax return.
Questions
Do I need to register for GST if I earn under $60,000?
Not if your sales in the last 12 months and the sales you expect in the next 12 both stay under $60,000. You can still choose to register, and you must if you expect a coming month and the 11 after it to pass $60,000.
Is the GST threshold based on the tax year?
No. It is any 12 months in a row, checked at the end of every month for the 12 months just gone, and at the start of every month for the 12 months ahead.
Does my salary count towards the GST threshold?
No. Wages or salary from a job are not a taxable activity. Only sales from your business count, such as contracting invoices and goods you sell, before GST.
How long do I have to register for GST once I pass $60,000?
21 days from the day you become liable, not counting that day. Liable at the end of 30 September, you apply by 21 October.
What happens when I save this?
Your account adds your client to Your Timesheets as contract work, after asking, so the hours behind each invoice are on record. Your sales figures are not saved. Invoices with GST are on the Career and Timesheets plan or On the Move.
Sources
- Goods and Services Tax Act 1985, ss 6, 8 and 51.
- Holidays Act 2003, s 44.
- Inland Revenue: exempt supplies.
- Inland Revenue: registering for GST.
- Inland Revenue: which GST accounting basis and filing frequency should I use.
- Legislation Act 2019, ss 13, 54 and 55.
- Te Kāhui o Matariki Public Holiday Act 2022, schedule 1.
More free tools: see all the calculators.