What are the New Zealand income tax rates for 2025-26?

For 2025-26, New Zealand tax rates are: $0-$15,600 = 10.5%, $15,601-$53,500 = 17.5%, $53,501-$78,100 = 30%, $78,101-$180,000 = 33%, $180,001+ = 39%. These rates include the Budget 2024 threshold changes effective from 31 July 2024.

What is the Student Loan repayment threshold for 2025-26?

The Student Loan repayment threshold for 2025-26 is $24,128 per year. You repay 12% of every dollar you earn above this threshold. Student loans are interest-free while you live in New Zealand.

What is the ACC Earners' Levy for 2025-26?

The ACC Earners' Levy for 2025-26 is 1.67% of your liable earnings, up to a maximum of $152,790. This covers you for non-work-related injuries and is automatically deducted with your PAYE.

What is the KiwiSaver contribution rate for 2025-26?

For 2025-26, the minimum KiwiSaver contribution rate is 3% for both employees and employers. Employees can choose to contribute 3%, 4%, 6%, 8%, or 10%. From 1 April 2026, the minimum will increase to 3.5%.

Does New Zealand have a tax-free threshold?

No, New Zealand does not have a tax-free threshold like Australia. All income is taxed from the first dollar earned. The lowest tax rate of 10.5% applies to the first $15,600 of income for the 2025-26 tax year.

What are the tax brackets in New Zealand for 2025-26?

For the 2025-26 tax year (1 April 2025 to 31 March 2026): $0-$15,600 = 10.5%, $15,601-$53,500 = 17.5%, $53,501-$78,100 = 30%, $78,101-$180,000 = 33%, $180,001+ = 39%. New Zealand uses a progressive tax system where only the income within each bracket is taxed at that rate.

What is PAYE tax in New Zealand?

PAYE (Pay As You Earn) is the system where your employer deducts income tax from your wages before paying you. Your tax code tells your employer how much to deduct. If you don't provide a tax code, tax is deducted at the non-declaration rate of 45%.

What tax code should I use?

For your main job, use M (primary income) or ME (if eligible for the Independent Earner Tax Credit). For a secondary job, use S, SH, ST, or SA depending on your total expected income. Add 'SL' to your code if you have a student loan (e.g., M SL). Complete an IR330 form and give it to your employer.

What happens if I have two jobs?

Use the M tax code for your main job (usually the highest-paying one) and a secondary tax code (S, SH, ST, or SA) for additional jobs. The secondary tax code ensures enough tax is deducted across your combined income to avoid a bill at year-end.

What is the ACC earner's levy?

The ACC earner's levy funds New Zealand's no-fault accident compensation scheme. For 2025-26, the rate is 1.67% (GST inclusive) of your earnings, up to a maximum of $152,790. This means the maximum levy you'll pay is $2,551.59 per year. It's automatically deducted from your pay along with PAYE.

What is the Independent Earner Tax Credit (IETC)?

IETC is a tax credit of up to $520 per year for New Zealand tax residents earning between $24,000 and $70,000 who don't receive Working for Families, NZ Superannuation, or a main benefit. The full credit applies up to $66,000 income, then reduces by 13 cents per dollar until $70,000.

Can employees claim work-related expenses as tax deductions?

Generally, no. In New Zealand, employees cannot claim deductions for work-related expenses like uniforms, tools, or travel costs. The tax system assumes employers cover these costs. Only self-employed individuals and contractors can claim business expenses against their income.

What expenses can self-employed people claim?

Self-employed people can claim business expenses including: office supplies and equipment, vehicle expenses (using logbook method), home office costs (using square metre rate of $55.60/m² for 2024-25 or actual expenses), professional services, insurance, and work-related travel. Expenses must be genuinely for business purposes.

What is the home office square metre rate?

For 2024-25, the IRD square metre rate is $55.60 per square metre of dedicated home office space. This covers utility costs like power, internet, and phone. You can still claim rent/mortgage interest and rates separately based on the percentage of floor area used for work.

When do I need to start repaying my student loan?

For 2025-26, you start making repayments when you earn over $24,128 per year (or $464 per week). You repay 12% of every dollar earned above the threshold. For example, if you earn $600/week, your repayment is ($600-$464) × 12% = $16.32. Student loans are interest-free while you live in New Zealand.

How do student loan repayments work with a secondary job?

The repayment threshold only applies to your main job. For secondary jobs, you repay 12% of every dollar earned (no threshold). For example, if you earn $200/week from a second job, your repayment is $200 × 12% = $24. Use a tax code with 'SL' for both jobs if you have a student loan.

What is KiwiSaver and how much do I contribute?

KiwiSaver is New Zealand's voluntary retirement savings scheme. You can choose to contribute 3%, 4%, 6%, 8%, or 10% of your gross pay. If you don't choose, the default is 3%. Your employer must also contribute at least 3%. From 1 April 2026, the minimum rates increase to 3.5% for both.

What is the KiwiSaver government contribution?

From 1 July 2025, the government contributes 25 cents for every dollar you contribute (down from 50 cents), up to a maximum of $260.72 per year. To receive the full amount, you need to contribute at least $1,043 per year. Those earning over $180,000 are no longer eligible for government contributions.

When is the New Zealand tax year?

The New Zealand tax year runs from 1 April to 31 March. For example, the 2025-26 tax year is from 1 April 2025 to 31 March 2026. This is different from the calendar year, so keep this in mind when reviewing your tax position.

When is my tax return due?

If you need to file an IR3 return (for untaxed income), the deadline is 7 July if filing yourself through myIR. If you use a registered tax agent, you may have until 31 March of the following year. Most PAYE earners don't need to file a return – IRD automatically assesses your tax.

Do I need to file a tax return if I only earn salary or wages?

Usually not. If all your income is taxed at source (PAYE), IRD will automatically calculate your tax position after 31 March. You'll receive an income tax assessment showing any refund or amount owing. You only need to file an IR3 return if you have untaxed income over $200.

What is the donation tax credit?

You can claim 33.33 cents back for every dollar donated to approved charities (on the IRD's approved donee list). The maximum you can claim is based on your taxable income. Claim through myIR after the tax year ends or include it in your tax return.

What is Resident Withholding Tax (RWT)?

RWT is tax deducted from interest and dividends you earn from NZ investments. You choose your RWT rate (10.5%, 17.5%, 30%, 33%, or 39%) to match your income tax rate. If you don't provide your IRD number, 45% is deducted. If your RWT rate doesn't match your tax rate, you may have tax to pay or a refund at year-end.

How do I track my tax refund or bill?

Log into your myIR account to check your tax position, view assessments, and track any refunds or payments due. IRD processes income tax assessments from May onwards, with most completed by July. Refunds are typically paid directly to your bank account within 2-3 weeks of assessment.

When is tax owing due for payment?

If you have tax to pay after your income tax assessment, it's due by 7 February the year after receiving the bill. For example, tax owing for the 2024-25 tax year is due by 7 February 2026. You can set up a payment arrangement with IRD if you can't pay the full amount.

What changes are coming to KiwiSaver in 2026 and 2028?

From 1 April 2026, the minimum contribution rate increases to 3.5% for both employees and employers. From 1 April 2028, it increases again to 4%. Employees can apply for a temporary rate reduction back to 3% if needed. Also from April 2026, employers must contribute for workers aged 16-17.

Free New Zealand Income Tax Calculator

How much tax will I pay? Use our free New Zealand Income Tax Calculator 2025-26 to find out instantly. Enter your salary to see your tax payable, ACC levy, student loan repayments, and take-home pay — calculated using the latest IRD tax rates.

NZ Tax Calculator

2025-26 IRD PAYE Rates • Tax Year 1 April 2025 - 31 March 2026

1 Basic Information

Tax Year

Tax Code

2 Income Details

Base Salary

Show detailed hours/days settings

Hours/Week

Weeks/Year

Days/Week

Hours/Day

Bonus (Annual)

Bonus Frequency

Overtime Hours/Week

Overtime Rate

Other Taxable Income

Interest, dividends, rental income, etc.

Secondary Job Income

Annual income from secondary employment

Employee KiwiSaver Rate % Contribution from your gross pay

Employer KiwiSaver Rate % Employer contribution (min 3%)

Voluntary Contributions

Extra annual contributions

💡 Government Contribution:
From 1 July 2025, 25c per $1 contributed (max $260.72/year). Contribute at least $1,042.86/year to maximise. Not available for incomes over $180,000.

⚠️ KiwiSaver Changes 2026:
From 1 April 2026, default rate increases to 3.5% (employee & employer).

Charitable Donations (DGR)

33.33% tax credit on donations to approved charities

Income Protection Insurance

Other Deductions

Note: New Zealand has limited deductions for PAYE employees. Most work-related expenses are not deductible. Donation tax credits are claimed via your tax return or myIR.

3 Options

I have a Student Loan This is my secondary job ACC Earner's Levy exempt

Your Estimated PAYE Tax

$16,278

Gross Income$80,000

Income Tax (PAYE)$14,942

ACC Earner's Levy$1,336

Student Loan$0

KiwiSaver (Employee)$0

Your Take Home Pay$63,722

Marginal Tax Rate33%

Pay Breakdown by Period

Period	Gross Pay	Tax + ACC	Net Pay	KiwiSaver

Tax Breakdown

PAYE Income Tax$14,942

ACC Earner's Levy (1.67%)$1,336

IETC (Tax Credit)-$0

Student Loan Repayment (12%)$0

KiwiSaver (Employee)$0

KiwiSaver (Employer)+$0

KiwiSaver (Govt Contribution)+$0

Donation Tax Credit-$0

Total Deductions from Pay$16,278

Independent Earner Tax Credit (IETC)

Annual IETC$520

Per Fortnight$20

💵 Bonus Impact: A $1,000 bonus gives you $670 after tax (at your marginal rate).

About This Calculator

Uses official IRD PAYE tax tables for the 2025-26 tax year (1 April 2025 - 31 March 2026). Includes ACC Earner's Levy, KiwiSaver, Student Loan repayments, and IETC. Results are estimates only.

See how your income compares to other New Zealanders based on Stats NZ data.

68th

Income Percentile

You earn more than 68% of NZ workers

$72,500

Average Income

$60,500

Median Income

$120,000

Top 10% Threshold

$40,000

To Reach Top 10%

Income Distribution

Data Source

Stats NZ - Income Statistics

Budget 2024 Tax Relief Savings

$1,040

Equivalent to 4 weeks of groceries

2023-24 Tax (Old Thresholds)$17,320

2025-26 Tax (New Thresholds)$16,278

Budget 2024 Tax Changes Summary:
• 10.5% threshold raised from $14,000 to $15,600
• 17.5% threshold raised from $48,000 to $53,500
• 30% threshold raised from $70,000 to $78,100
• IETC extended to incomes up to $70,000
• 33% and 39% thresholds unchanged

Where your $16,278 in tax goes (NZ Government Budget)

● Social Security: $5,370

● Health: $3,581

● Education: $2,605

● Core Govt: $1,302

● Finance: $977

● Other: $2,443

Source

Budget.govt.nz - NZ Government Budget

Personalized tax-saving suggestions based on your calculation.

Effective Tax Rate

20.3%

Marginal Tax Rate

33%

Total Tax + ACC

$16,278

Disclaimer: These recommendations are for informational purposes only and should not be considered as professional financial advice.

New Zealand Income Tax Rates 2025-26

The 2025-26 tax year runs from 1 April 2025 to 31 March 2026. These PAYE rates apply to salary and wage earners.

Taxable Income	Tax Rate	Tax on This Income
$0 – $15,600	10.5%	10.5c for each $1
$15,601 – $53,500	17.5%	$1,638 + 17.5c for each $1 over $15,600
$53,501 – $78,100	30%	$8,270.50 + 30c for each $1 over $53,500
$78,101 – $180,000	33%	$15,650.50 + 33c for each $1 over $78,100
$180,001+	39%	$49,277.50 + 39c for each $1 over $180,000

Student Loan 2025-26

Repay 12% of every dollar earned above the threshold. Interest-free while living in NZ.

Annual Threshold $24,128

Weekly Threshold $464

Repayment Rate 12%

Interest (NZ-based) 0%

ACC Earners' Levy 2025-26

Covers non-work injuries. Automatically deducted with PAYE.

Levy Rate 1.67%

Max Liable Earnings $152,790

Maximum Levy $2,551.59

KiwiSaver 2025-26

Retirement savings scheme. Minimum rates increase to 3.5% from 1 April 2026.

Minimum Rate 3%

Employer Match 3% minimum

Employee Options 3-10%

Govt Contribution Max $260.72/yr

KiwiSaver Contribution Rates 2025-26

KiwiSaver is a voluntary workplace savings scheme for retirement. The government contribution rate changed from 1 July 2025.

Contribution Type	Rate	Notes
Employee (Minimum)	3%	Can choose 3%, 4%, 6%, 8%, or 10%
Employer (Minimum)	3%	Compulsory if employee contributes
Government Contribution	25c per $1	Max $260.72/year (from 1 July 2025)
Income Cap for Govt Contribution	$180,000	No govt contribution above this income

From 1 April 2026, minimum contribution rates will increase to 3.5% for both employees and employers. From 1 April 2028, rates will increase to 4%.

Tax Credits 2025-26

Independent Earner Tax Credit (IETC)

The IETC provides tax relief for earners not receiving Working for Families or a main benefit:

Taxable Income	IETC Amount
$24,000 – $44,000	Up to $520 per year ($10/week)
$44,001 – $48,000	Reduces by 13c per $1 over $44,000
$48,001 – $70,000	$520 minus 13c per $1 over $48,000
Above $70,000	No credit

Working for Families Tax Credits

Support for families with dependent children (income tested):

Credit Type	Maximum Amount	Notes
Family Tax Credit (FTC)	$7,173/year (eldest child)	All families with children under 18
In-Work Tax Credit (IWTC)	$3,770/year	For families in paid work (min hours)
Best Start	$3,770/year per child	Children under 3 years old
Minimum Family Tax Credit	Varies	Tops up income to minimum threshold

Non-Resident & Secondary Tax Rates 2025-26

Non-Residents

Non-resident withholding tax rates:

Income Type	Rate
Interest (with IRD number)	10.5% – 15%
Dividends	15% – 30%
Royalties	15%
Contract payments	15%

Secondary Tax Codes

For additional jobs or income sources:

Tax Code	Rate
SB	10.5%
S	17.5%
SH	30%
ST	33%
SA	39%

Common Tax Deductions 2025-26

Expenses you may be able to claim if you're self-employed or have work-related expenses:

🏠 Home Office Portion of rent, power, internet if working from home

🚗 Vehicle Expenses Business use portion of running costs

💻 Equipment Computers, tools for work (depreciate if over $1,000)

🏥 Income Protection Premiums for income protection insurance

📚 Training Work-related courses and education

🎁 Donations 33.33% rebate on donations to approved charities

Key Tax Dates 2025-26

1 April 2025

Tax Year Starts

31 March 2026

Tax Year Ends

7 July 2026

IR3 Return Due

7 Feb 2027

Terminal Tax Due

Official IRD Sources

Tips to Maximise Your Tax Return

General strategies New Zealanders can consider to optimise their tax situation.

Boost Your KiwiSaver Contributions

Making voluntary contributions to your KiwiSaver can help build retirement savings. Contribute at least $1,042.86/year to receive the full $521.43 government contribution.

Claim All Eligible Expenses

If you're self-employed or have rental income, track deductible expenses carefully: home office costs, vehicle expenses, professional subscriptions, and work-related tools.

Check for Working from Home Deductions

If you work from home and your employer doesn't reimburse expenses, you may be able to claim a portion of household costs proportional to your work use.

Review Your Tax Code

Ensure your employer is using the correct tax code (M, ME, S, SH, etc.). Using the wrong code can result in over or underpayment throughout the year.

Make Charitable Donations

Donations of $5 or more to approved donee organisations qualify for a 33.33% tax credit. Keep receipts and claim via your tax return or IR526 form.

Consider Income Splitting

For couples with different income levels, structuring investments or rental properties appropriately can help minimise overall household tax through lower marginal rates.

New Zealand Income Tax News & Updates

The recent changes, policy discussions, and key updates on income tax in New Zealand.

Showing 14 updates

Government KiwiSaver From April 2026

January 2026

KiwiSaver Default Contribution Rate Rising to 3.5% from 1 April 2026

The default KiwiSaver contribution rate for both employees and employers will increase from 3% to 3.5% from 1 April 2026. A further increase to 4% is scheduled for 1 April 2028. Employees can apply for a temporary rate reduction if needed.

Key Changes

From 1 April 2026: Default rate increases to 3.5% (employee and employer)
From 1 April 2028: Default rate increases to 4%
Temporary Opt-Down: Apply from 1 February 2026 to stay at 3% for 3-12 months
16-17 Year Olds: Now eligible for employer contributions from 1 April 2026
Impact: KiwiSaver balances expected to grow ~30% larger over working life

For Employers

Update payroll systems by 1 April 2026. Employer contributions must match employee rate (minimum 3.5%).

Opt-Down Option

Apply via myIR from 1 February 2026 if you want to continue at 3%. Valid for 3-12 months, can reapply.

Government ACC From April 2026

January 2026

ACC Earners' Levy Increasing to $1.75 per $100 from 1 April 2026

The ACC earners' levy rate will increase from 1.67% to 1.75% ($1.75 per $100 of liable earnings) from 1 April 2026. The maximum liable earnings threshold is also increasing.

Key Changes from 1 April 2026

New Rate: $1.75 per $100 of liable earnings (up from $1.67)
Maximum Liable Earnings: $156,641 (up from $152,790)
Maximum Levy: Approximately $2,741 per year
Collection: Deducted automatically through PAYE for employees

How It Works

ACC earners' levy is included in your PAYE deductions - no separate calculation needed for employees.

Self-Employed

Self-employed pay through their tax return. Consider CoverPlus Extra for agreed weekly compensation.

Government FamilyBoost Now Law

October 2025

FamilyBoost Childcare Rebate Increased: Now 40% Up to $1,560 Per Quarter

FamilyBoost has been significantly increased to help families with early childhood education costs. The rebate is now 40% of eligible ECE costs, up to a maximum of $1,560 per quarter.

Key Changes (From July-September 2025 Quarter)

Rebate Rate: 40% of eligible ECE costs (previously 25%)
Maximum Per Quarter: $1,560 (previously $975)
Maximum Per Year: Up to $6,240 per family
Income Threshold: $57,286 per quarter ($229,144 annual)
Abatement Rate: 7% for income over $35,000 per quarter

How to Claim

Claim quarterly through myIR after each quarter ends. Keep receipts from licensed ECE providers.

Current Quarter

Oct-Dec 2025 quarter claims open from 1 January 2026. Processing starts 8 January 2026.

Government Tax Relief In Effect

1 April 2025

New Tax Brackets Now Fully in Effect: Higher Thresholds for 2025-26 Tax Year

The Budget 2024 tax bracket changes now apply for the full 2025-26 tax year. The bottom three tax brackets have higher thresholds, providing tax relief for most earners.

Current Tax Brackets (2025-26 Tax Year)

$0 - $15,600: 10.5% (was $0 - $14,000)
$15,601 - $53,500: 17.5% (was $14,001 - $48,000)
$53,501 - $78,100: 30% (was $48,001 - $70,000)
$78,101 - $180,000: 33%
$180,001+: 39%

Savings Example

Income $70,000: Save approximately $877 per year compared to pre-Budget 2024 rates.

How It Works

Automatic - PAYE withholding updated. Check your payslips to see the lower deductions.

Government KiwiSaver Important

1 July 2025

KiwiSaver Government Contribution Halved: Now 25 Cents Per Dollar

From 1 July 2025, the KiwiSaver government contribution has been reduced from 50 cents to 25 cents for every dollar you contribute, with a new maximum of $260.72 per year. High earners ($180,000+) are no longer eligible.

Key Changes

New Rate: 25 cents per $1 you contribute (was 50 cents)
New Maximum: $260.72 per year (was $521.43)
To Get Full Amount: Contribute at least $1,042.86 per year
Income Cap: Not available if you earn over $180,000
16-17 Year Olds: Now eligible for government contribution

Who's Affected

Self-employed and those not in paid work will see reduced total contributions without employer matching.

Eligibility

Must be aged 16+, NZ tax resident, earn under $180,000, and not yet eligible to withdraw.

Government Business New

22 May 2025

Investment Boost: 20% Immediate Tax Deduction for New Business Assets

Budget 2025 introduced Investment Boost - a new tax incentive allowing businesses to claim an immediate 20% deduction on eligible new assets, with the remaining 80% depreciated as normal.

Key Details

Deduction: 20% of asset cost claimed immediately in year of purchase
Remaining 80%: Depreciated under normal tax depreciation rules
Effective From: Assets first available for use on or after 22 May 2025
Eligible Assets: New depreciable assets including machinery, vehicles, computers, commercial buildings
Excluded: Land, residential buildings, intangible assets
Second-Hand: Overseas purchases only (not domestic second-hand)

Example

$100,000 machine: Claim $20,000 immediately + standard depreciation on $80,000. Saves ~$5,600 in year one (at 28% company rate).

R&D Eligible

Investment Boost expenditure remains eligible for the R&D tax credit for additional benefit.

Government Tax Credit In Effect

31 July 2024

Independent Earner Tax Credit Extended to $70,000 Income

The Independent Earner Tax Credit (IETC) has been extended to include earners up to $70,000 (previously $48,000). Eligible taxpayers can receive up to $520 per year.

New Eligibility (From 31 July 2024)

Income Range: $24,000 to $70,000 per year
Maximum Credit: $520 per year (~$10 per week)
Full Credit: Income between $24,000 and $66,000
Abatement: Reduces by 13 cents per dollar over $66,000
Phases Out: At $70,000 income

Not Eligible If

You receive Working for Families, a benefit, NZ Super, Veteran's Pension, or student allowance.

How to Claim

Use tax code ME (or ME SL with student loan) for PAYE. Self-employed claim on IR3 return.

Government Student Loan Frozen

1 April 2025

Student Loan Repayment Threshold Frozen at $24,128

The student loan repayment threshold has been frozen indefinitely at $24,128 per year. This means more borrowers will make repayments as incomes rise with inflation. Interest rates for overseas borrowers have also increased.

Key Details

Repayment Threshold: $24,128 per year (frozen - not indexed to inflation)
Repayment Rate: 12% of every dollar earned over the threshold
Weekly Threshold: $464 per week
NZ-Based: Remain interest-free while living in New Zealand
Overseas Interest: 4.9% per year (up from 3.3%)

Example

Earning $600/week: ($600 - $464) × 12% = $16.32 weekly repayment.

Late Payment Interest

Increased to 8.9% (was 7.3%). Reduced rate if paying: 6.9%.

Government ACC Rate Increase

1 April 2025

ACC Earners' Levy Increased to 1.67% for 2025-26

The ACC earners' levy has increased from 1.60% to 1.67% (GST inclusive) for the 2025-26 tax year. This levy funds cover for non-work injuries.

Current Rates (2025-26)

Earners' Levy Rate: 1.67% ($1.67 per $100 of earnings)
Maximum Earnings: $152,790 per year
Maximum Levy: $2,551.59 per year
Collection: Automatically included in PAYE deductions

What It Covers

Non-work personal injuries (sports, home, vehicle accidents). Work injuries covered by employer's Work levy.

Self-Employed

ACC sends a separate invoice. Consider CoverPlus Extra for agreed weekly compensation cover.

Government Deductions New Structure

30 May 2025

Vehicle Kilometre Rates Expanded to Four Categories by Fuel Type

IRD has restructured the kilometre rates for business vehicle expenses, expanding from a single rate to four categories based on vehicle fuel type: Petrol, Diesel, Hybrid, and Electric.

Tier 1 Rates (First 14,000 km) - 2024-25

Petrol: $1.17 per km
Diesel: $1.26 per km
Petrol Hybrid: $0.86 per km
Electric: $1.08 per km

Tier 2 Rates (Over 14,000 km)

Lower rates apply after 14,000 km as fixed costs are already covered. Running costs only.

No GST Claim

When using kilometre rates, you cannot claim GST separately. Depreciation is also included in the rates.

Government Compliance Enforcement

May 2025

IRD Receives Additional $35 Million Per Year for Compliance Activities

Budget 2025 allocated an additional $35 million per year to Inland Revenue for compliance and debt management activities. The Government expects an 8:1 return on this investment through increased collections.

Key Details

New Funding: $35 million per year for compliance work
Existing Extension: $26.5 million per year extended to 2028/29
Expected Return: $1.5 billion additional revenue collected over time
Focus Areas: Audit, compliance review, debt collection
Data Matching: Enhanced cross-referencing with banks, employers, property records

What This Means

Expect increased scrutiny on income declarations, especially self-employed and rental income.

Key Advice

Keep accurate records. Update income estimates promptly. Pay tax on time to avoid penalties.

Government Tax Relief Major Change

31 July 2024

Budget 2024 Tax Relief Package: $3.7 Billion in Tax Cuts Begin

The Government's tax relief package took effect from 31 July 2024, delivering tax cuts worth $3.7 billion annually through higher tax brackets, extended IETC, increased Working for Families payments, and the new FamilyBoost childcare rebate.

Key Components

Higher Tax Thresholds: Bottom three tax brackets increased
IETC Extended: Now available up to $70,000 income (was $48,000)
In Work Tax Credit: Increased by $25 per week
Minimum Family Tax Credit: Threshold increased
FamilyBoost: New 25% childcare rebate (later increased to 40%)

Savings Example

Single earner on average wage ($70,000): ~$50 per fortnight in tax relief.

How It Works

PAYE tables automatically updated. No action needed - check payslips for lower deductions.

Government Property Restored

1 April 2024

Rental Property Interest Deductions Restored to 100%

From 1 April 2024, landlords can again claim 100% of mortgage interest as a tax deduction on residential rental properties. This reverses the previous Labour government's phase-out of interest deductibility.

Key Details

Deduction Rate: 100% of interest now deductible (was being phased out)
Effective From: 1 April 2024
Ring-Fencing: Excess deductions still ring-fenced (carried forward)
New Builds: Were always fully deductible - no change

Impact

Significant tax savings for property investors with mortgages. Reduces tax on rental income.

Record Keeping

Keep all loan statements showing interest paid. Separate personal and rental property loans.

Government Working for Families Increased

31 July 2024

Working for Families: In Work Tax Credit Increased by $25/Week

The In Work Tax Credit (IWTC) increased by $25 per week for eligible working families. Combined with higher Minimum Family Tax Credit thresholds, families receive significantly more support.

Key Changes

In Work Tax Credit: Increased by $25 per week
Minimum Family Tax Credit: Higher threshold
Family Tax Credit: Annual adjustment for inflation
Abatement Threshold: Proposed increase from 1 April 2026

Who Benefits

Working families with children. Must work minimum hours (20-30 per week depending on circumstances).

How to Claim

Apply or update details through myIR. Can receive weekly payments or end-of-year lump sum.

Frequently Asked Questions

Everything you need to know about income tax in New Zealand.

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About this calculator

This calculator provides an estimate based on official IRD tax rates. We don’t store your data. This is not financial advice. For official information, please refer to the Inland Revenue .

Free New Zealand Income Tax Calculator

Select Details

Enter Income

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NZ Tax Calculator

Pay Breakdown by Period

Income Distribution

New Zealand Income Tax Rates 2025-26

Student Loan 2025-26

ACC Earners' Levy 2025-26

KiwiSaver 2025-26

KiwiSaver Contribution Rates 2025-26

Tax Credits 2025-26

Independent Earner Tax Credit (IETC)

Working for Families Tax Credits

Non-Resident & Secondary Tax Rates 2025-26

Non-Residents

Secondary Tax Codes

Common Tax Deductions 2025-26

Key Tax Dates 2025-26

Official IRD Sources

Tips to Maximise Your Tax Return

Boost Your KiwiSaver Contributions

Claim All Eligible Expenses

Check for Working from Home Deductions

Review Your Tax Code

Make Charitable Donations

Consider Income Splitting

New Zealand Income Tax News & Updates

KiwiSaver Default Contribution Rate Rising to 3.5% from 1 April 2026

Key Changes

For Employers

Opt-Down Option

ACC Earners' Levy Increasing to $1.75 per $100 from 1 April 2026

Key Changes from 1 April 2026

How It Works

Self-Employed

FamilyBoost Childcare Rebate Increased: Now 40% Up to $1,560 Per Quarter

Key Changes (From July-September 2025 Quarter)

How to Claim

Current Quarter

New Tax Brackets Now Fully in Effect: Higher Thresholds for 2025-26 Tax Year

Current Tax Brackets (2025-26 Tax Year)

Savings Example

How It Works

KiwiSaver Government Contribution Halved: Now 25 Cents Per Dollar

Key Changes

Who's Affected

Eligibility

Investment Boost: 20% Immediate Tax Deduction for New Business Assets

Key Details

Example

R&D Eligible

Independent Earner Tax Credit Extended to $70,000 Income

New Eligibility (From 31 July 2024)

Not Eligible If

How to Claim

Student Loan Repayment Threshold Frozen at $24,128

Key Details

Example

Late Payment Interest

ACC Earners' Levy Increased to 1.67% for 2025-26

Current Rates (2025-26)

What It Covers

Self-Employed

Vehicle Kilometre Rates Expanded to Four Categories by Fuel Type

Tier 1 Rates (First 14,000 km) - 2024-25

Tier 2 Rates (Over 14,000 km)

No GST Claim

IRD Receives Additional $35 Million Per Year for Compliance Activities

Key Details

What This Means

Key Advice

Budget 2024 Tax Relief Package: $3.7 Billion in Tax Cuts Begin

Key Components

Savings Example

How It Works

Rental Property Interest Deductions Restored to 100%

Key Details

Impact