Calculate your exact take-home pay — income tax across 5 progressive brackets, 1.67% ACC earners' levy, KiwiSaver & student loan deductions. Updated for the full 2025–26 IRD tax year.
10.5%Lowest rate
39%Top rate
1.67%ACC Levy
5Tax brackets
NZ$/ year
Take-Home Pay BreakdownAnnual (2025–26)
Take-Home PayNZ$0Enter your salary above
0.0%
Effective tax rate
Gross IncomeAnnual salary before deductions
NZ$0
Income Tax (PAYE)5 progressive brackets: 10.5%–39%
–NZ$0
ACC Earners' Levy1.67% · cap NZ$152,790
–NZ$0
KiwiSaver3% of gross (employee)
–NZ$0
Student Loan12% on income above $24,128
–NZ$0
IETC (tax credit)Independent Earner Tax Credit
+NZ$0
Take-Home PayNet pay after all deductions
NZ$0
Income Tax Bracket Breakdown
💼Enter your salary to see your employer's KiwiSaver contribution (3% minimum, paid on top of your wage — not deducted from you).
📅These brackets apply for the full 2025–26 tax year (1 April 2025 – 31 March 2026). First introduced mid-year on 31 July 2024 as part of Budget 2024, they now apply cleanly for the entire year. No changes were made in Budget 2025.
Taxable Income
Tax Rate
Tax on Bracket
Cumulative Tax
$0 – $15,600
10.5%
$1,638.00
$1,638.00
$15,601 – $53,500
17.5%
$6,632.50
$8,270.50
$53,501 – $78,100
30%
$7,380.00
$15,650.50
$78,101 – $180,000
33%
$33,627.00
$49,277.50
$180,001 +
39%
On excess
$49,277.50 + 39%
Worked Examples
1
$55,000 salary
10.5% on $15,600 = $1,638 17.5% on $37,900 = $6,632.50 30% on $1,500 = $450
Total tax: $8,720.50 (eff. 15.9%)
2
$100,000 salary
10.5% on $15,600 = $1,638 17.5% on $37,900 = $6,632.50 30% on $24,600 = $7,380 33% on $21,900 = $7,227
Total tax: $22,877.50 (eff. 22.9%)
3
$200,000 salary
Brackets 1–4 = $49,277.50 39% on $20,000 = $7,800
Total tax: $57,077.50 (eff. 28.5%)
💡New Zealand has no tax-free threshold — income tax applies from the first dollar earned. However, the low 10.5% starting rate means low earners pay proportionally less.
1.67%ACC Earners' Levy 2025–26Capped at NZ$152,790 earnings
3%+KiwiSaver (employee min.)Employer adds at least 3% on top
12%Student Loan rateOn income above $24,128/yr
$520Max IETC credit/yrEarners $24,000–$70,000 (no WFF)
ℹ️Tax codes matter. Use M for your main job (progressive brackets apply). Use ME if eligible for IETC. For secondary employment, use S, SH, or ST based on expected secondary income. Using the wrong code leads to over- or under-payment.
⚠️From 1 April 2026, the default KiwiSaver rate for both employees and employers rises from 3% to 3.5%. Employees wishing to keep 3% must elect a reduced rate by February 2026 via myIR.
$15,600
Top of 10.5% bracket
$53,500
Top of 17.5% bracket
$78,100
Top of 30% bracket
$180K
39% rate kicks in
What is PAYE in New Zealand?
PAYE (Pay As You Earn) is New Zealand's primary method of collecting income tax from employees. Instead of a lump-sum payment at year end, your employer deducts income tax, ACC earners' levy, KiwiSaver contributions, and student loan repayments from every paycheque and forwards them directly to Inland Revenue (IRD).
New Zealand uses a progressive tax system — income is taxed in five tiers, with each portion taxed only at the rate for that bracket. The updated brackets introduced in Budget 2024 (which took partial effect from 31 July 2024 and fully apply from 1 April 2025) provide meaningful tax relief for middle-income earners by adjusting thresholds for wage growth since 2010.
1
Income Tax (PAYE)
Progressive across 5 brackets from 10.5% to 39%. Only the income within each bracket is taxed at that rate.
2
ACC Earners' Levy
1.67% of gross earnings (2025–26), capped at $152,790. Funds NZ's no-fault accident compensation scheme.
3
KiwiSaver
Optional retirement savings scheme. Employee contributes 3%–10% of gross. Employer adds at least 3% on top.
4
Student Loan
If you have a student loan, 12% is deducted on income above the $24,128 annual repayment threshold.
NZ Income Tax Brackets 2025–26 (IRD)
New Zealand's five progressive income tax brackets apply from 1 April 2025 to 31 March 2026. These thresholds were updated as part of Budget 2024 — no further changes were made in Budget 2025.
Annual Taxable Income
Tax Rate
Max Tax on Band
$0 – $15,600
10.5%
$1,638.00
$15,601 – $53,500
17.5%
$6,632.50
$53,501 – $78,100
30%
$7,380.00
$78,101 – $180,000
33%
$33,627.00
Over $180,000
39%
Unlimited
💡How progressive tax works: On a $60,000 salary, you pay 10.5% on the first $15,600, then 17.5% on the next $37,900, then 30% on the remaining $6,500. Your effective tax rate is about 17% — not 30%.
ACC Levy, KiwiSaver & Student Loan
ACC Earners' Levy (2025–26)
The ACC (Accident Compensation Corporation) earners' levy is 1.67% of gross earnings for 2025–26, deducted from all employees' wages. It funds New Zealand's world-unique no-fault accident compensation scheme — meaning you cannot sue for personal injury, but ACC covers medical costs and income support. The maximum earnings threshold is $152,790 (maximum levy: $2,551.59/year).
KiwiSaver
KiwiSaver is New Zealand's voluntary workplace retirement savings scheme. Employees can contribute 3%, 3.5%, 4%, 6%, 8% or 10% of gross pay. Employers must contribute at least 3% on top — this is not deducted from your pay but is an additional employer obligation. The default rate rises to 3.5% from 1 April 2026 for both employees and employers.
Student Loan Repayments
If you have a student loan, 12% of income above the annual repayment threshold of $24,128 is automatically deducted via PAYE. Add "SL" to your tax code (e.g., M SL) to ensure your employer deducts the right amount. No interest accrues while you live and work in New Zealand.
⚠️From 1 April 2026, the default KiwiSaver employee and employer contribution rate rises from 3% to 3.5%. Employees wanting to stay at 3% must elect this via myIR before February 2026.
Independent Earner Tax Credit (IETC)
The IETC is a tax credit of up to $520 per year ($20 per fortnight) available to New Zealand tax residents who earn between $24,000 and $70,000 per year and do not receive Working for Families tax credits, a main benefit, or New Zealand Superannuation. Eligibility for incomes between $66,000 and $70,000 is subject to a phase-out.
✓
Eligible if…
You earn $24,000–$70,000, are a NZ tax resident, and do not receive WFF, main benefit, or NZ Super.
$
Maximum credit
Up to $520/year ($20/fortnight). Applied automatically if you use the ME tax code or claim it in your tax return.
↘
Phase-out range
The credit phases out for incomes between $66,000 and $70,000, reducing by $13 for every $1 over $66,000.
Frequently Asked Questions — PAYE New Zealand
For 2025–26: 10.5% on the first $15,600; 17.5% on $15,601–$53,500; 30% on $53,501–$78,100; 33% on $78,101–$180,000; 39% on income above $180,000. These brackets apply from 1 April 2025 and were introduced in Budget 2024.
The ACC earners' levy is 1.67% of gross earnings for 2025–26 (increased from 1.60%). It's capped at $152,790 of earnings, meaning the maximum levy is $2,551.59 per year. This funds ACC — New Zealand's no-fault accident compensation scheme. From 1 April 2026, the rate is scheduled to increase to 1.75%.
Your marginal tax rate is the rate applied to your last dollar of income (e.g., 30% if you earn $60,000). Your effective tax rate is your total tax divided by total income — always lower than marginal because lower brackets apply to earlier income. On $60,000, the marginal rate is 30% but the effective rate is about 17%.
Employees can contribute 3%, 3.5%, 4%, 6%, 8% or 10% of their gross pay to KiwiSaver. The employer must contribute at least 3% on top of your salary (not deducted from you). From 1 April 2026, the default minimum for both employee and employer rises to 3.5%.
The annual repayment threshold for 2025–26 is $24,128. If your income exceeds this, 12% is automatically deducted on earnings above the threshold via PAYE. No interest accrues while you live in New Zealand. Add "SL" to your tax code to ensure correct deductions.
For your main (highest) income, use M. If eligible for the IETC (earning $24k–$70k, no WFF), use ME. For secondary income, use S (income to $53,500), SH ($53,501–$78,100), or ST (above $78,100). If you don't provide an IR330, your employer must deduct at 45% (no-declaration rate). Add SL to any code if you have a student loan.
This calculator provides general guidance based on IRD rates for the 2025–26 tax year (1 April 2025 – 31 March 2026). It does not constitute financial or tax advice. Results are estimates only — individual circumstances may vary. Always verify with ird.govt.nz or a qualified tax professional. Last updated: April 2025.
