New Zealand Income Tax Calculator

PAYE (Pay As You Earn) is the system where employers deduct income tax from your wages each pay period and pass it to IRD. It includes:

• Income tax on the progressive 10.5%/17.5%/30%/33%/39% scale
• ACC earner levy at 1.67% on income up to the cap
• Student loan repayments (12% above threshold) if your tax code ends in "SL"
• KiwiSaver deductions at your chosen rate (separate from PAYE but deducted from the same pay)

Your employer pays the total to IRD by the 20th of the following month.

The ACC earner levy funds NZ's no-fault accident insurance scheme. It is deducted from wages alongside PAYE.

• 2026–27 rate: 1.75% of liable earnings up to NZD 156,641
• 2026–27 rate: 1.75% of liable earnings up to NZD 156,641 (from 1 April 2026)

If you earn above the cap, no further levy is charged on the excess. The levy is included in PAYE figures shown on your payslip.

Your tax code tells your employer how much tax to deduct. Common codes:

• M — main job, no IETC, no student loan
• ME — main job, eligible for IETC (income NZD 24,000–70,000)
• M SL — main job with student loan
• ME SL — main job with IETC and student loan
• S, SH, ST, SA — secondary income at flat rates matching the bracket your total income falls into
• SB — secondary income, total income under NZD 15,600

If you have no IRD number or don't complete an IR330, your employer must use the non-declaration rate of 45%.

Bonuses are "extra pay" for PAYE purposes. The withholding rate depends on your annualised income from regular salary plus the bonus:

• 10.5% if estimated annual income is up to NZD 14,000 (rare with bonus)
• 17.5% for NZD 14,001–48,000
• 30% for NZD 48,001–70,000
• 33% for NZD 70,001–180,000
• 39% for above NZD 180,000

The ACC earner levy and student loan repayments also apply. KiwiSaver contributions apply if you contribute on bonus pay.

For the 2026–27 tax year, the minimum employee contribution is 3.5% of gross pay (raised from 3% on 1 April 2026 per Budget 2025). Your employer must also contribute at least 3.5%.

Members can temporarily opt down to the previous 3% rate, with the employer matching at that rate. A further increase to 4% is scheduled for 1 April 2028.

You can choose to contribute at higher rates of 4%, 6%, 8%, or 10%. From 1 February 2026, members can apply to IRD for a temporary rate reduction (3–12 months) to stay at 3% after the April 2026 change.

From 1 July 2025, the government contribution is 25 cents for every NZD 1 you contribute, capped at NZD 260.72 per year. This was halved from the previous 50¢ per NZD 1 (max NZD 521.43).

The full annual government contribution requires contributions of at least NZD 1,042.86 in the 1 July to 30 June year.

Members earning over NZD 180,000 are no longer eligible for the government contribution from 1 July 2025. 16- and 17-year-olds are now eligible for the government contribution (from 1 July 2025) and will qualify for employer contributions from 1 April 2026.

Yes. You can withdraw most of your KiwiSaver balance for a first-home purchase, provided you:

• Have been in KiwiSaver for at least 3 years
• Are buying your first home (some second-chance criteria apply)
• Plan to live in the property for at least 6 months

You must leave a minimum of NZD 1,000 in your KiwiSaver. You may also be eligible for the First Home Grant (up to NZD 5,000 for existing or NZD 10,000 for new homes), administered by Kāinga Ora.

You can withdraw your full KiwiSaver balance when you reach age 65, regardless of whether you continue working. This is the qualifying age for NZ Superannuation.

If you joined KiwiSaver after age 60, you must remain a member for at least 5 years before withdrawing. You can withdraw partial amounts, set up regular withdrawals, or transfer to a retirement fund — your choice. After age 65, employer contributions are voluntary and the government contribution stops.

The IETC is a tax credit of up to NZD 520 per year (NZD 10/week) for individuals earning between NZD 24,000 and NZD 70,000 who don't receive other forms of government support.

For 2026–27:

• NZD 24,000–66,000: full NZD 520 credit
• NZD 66,001–70,000: abates by 13 cents per dollar earned over NZD 66,000

To get the IETC, use tax code ME (or ME SL if you have a student loan). You must not be receiving Working for Families, NZ Super, an income-tested benefit, or a student allowance.

If you have a New Zealand student loan and earn above the threshold, your employer deducts repayments automatically through PAYE.

• 2026–27 annual threshold: NZD 24,128 (unchanged from prior year)
• Repayment rate: 12% of every dollar earned above the threshold
• Tax code suffix: "SL" — e.g., M SL, ME SL

NZ-based borrowers pay 0% interest. Overseas-based borrowers (away more than 184 days) accrue 5.6% interest in 2026–27 (up from 4.9% in 2025–26) and have fixed annual obligations based on their loan balance.

Working for Families (WFF) is a package of tax credits for families with dependent children under 18. The four main credits:

• Family Tax Credit (FTC): base support based on family income and number of children — abates from NZD 44,900 family income (from 1 April 2026)
• In-Work Tax Credit (IWTC): NZD 5,070/year base for working families (rising by NZD 50/week temporary increase from 1 April 2026)
• Best Start Tax Credit: NZD 73/week per child under age 1; income-tested up to age 3
• Minimum Family Tax Credit (MFTC): tops up incomes — NZD 35,316/year after-tax threshold from 31 July 2024

WFF is administered by IRD. You can receive payments weekly, fortnightly, or as an end-of-year lump sum.

FamilyBoost is a rebate of up to 25% of weekly early childhood education (ECE) costs, capped at NZD 75 per week (NZD 975 per quarter).

• Available to households with combined income under NZD 180,000
• Abates from NZD 140,000 family income
• Claim quarterly via myIR by uploading ECE invoices
• IRD assesses eligibility based on real-time pay data

Children must be aged 5 or under and attending a licensed ECE service. The rebate is paid to your bank account.

Most salary and wage earners on PAYE do not need to file. IRD performs an automatic income tax assessment after 31 March each year, then either issues a refund or bill.

You must file an IR3 return if you have:

• Income from self-employment or as a sole trader
• Rental property income
• Overseas income (including foreign superannuation, FIF investments)
• Income from a trust or partnership
• Schedular payments (contractors with WT tax)

Returns are due by 7 July following the end of the tax year (or later if you use a tax agent).

Use a primary tax code (M, ME, M SL, or ME SL) for your main job and a secondary tax code (S, SH, ST, SA, or SB) for other jobs.

Pick the secondary code based on your combined total income from all sources:

• SB: total income under NZD 15,600
• S: NZD 15,601–53,500
• SH: NZD 53,501–78,100
• ST: NZD 78,101–180,000
• SA: above NZD 180,000

The flat secondary rate matches the marginal bracket — without the threshold benefit. If you under or over-pay during the year, IRD reconciles via the auto-assessment.

For most PAYE-only earners, IRD issues an auto-assessment in late May to July following the end of the tax year. If you're due a refund, it's deposited to your nominated bank account in myIR.

If you have a tax bill, it's typically due by 7 February the following year (or 7 April if you have a tax agent). Late payment interest applies to balances over NZD 100. Use myIR to check your assessment status, view your income summary, and request a payment plan if needed.

If your circumstances change (e.g., you become eligible for IETC, take on a student loan, or start a second job), update your tax code by:

• Completing a Tax Code Declaration (IR330) form and giving it to your employer
• Or updating your tax code online via myIR

Your employer applies the new code to subsequent pays. Tax already deducted at the old code is reconciled at the end of the tax year. If unsure, IRD's online tax code finder walks you through the right code based on your situation.