New Zealand PAYE Calculator
This calculator estimates New Zealand income tax and the ACC earner levy for the 2025–26 tax year. Calculations apply IRD’s progressive tax rates and the 1.67% ACC earner levy capped at NZD 152,790.
Enter Your Income
Input annual income in NZD, pay frequency, and any secondary income.
Select Tax Code
Choose the IRD tax code that applies to your circumstances.
Review the Breakdown
Estimated income tax, ACC levy, and take-home pay update automatically.
New Zealand PAYE Tax Calculator
2025–26 IRD rates · ACC earner levy · KiwiSaver · IETC
Payslip
ANNUALAnnual tax summary
A plain-English read of where every dollar of your gross income lands — using IRD 2025–26 PAYE rates, ACC earner levy, KiwiSaver, and any IETC / student loan applicable to your tax code.
IRD 2025–26 personal income tax brackets
NZ uses progressive PAYE rates from 10.5% to 39%. There is no tax-free threshold — every dollar of taxable income is taxed. The bracket your total income reaches is highlighted.
| Taxable Income | Rate | Cumulative tax at top of band |
|---|
Effective vs marginal tax rate
NZ's progressive system means the rate on your last dollar earned is higher than your overall rate.
Where you sit in New Zealand's income distribution
Based on Stats NZ Income Survey indicative percentile data. Your gross income is compared against full-time New Zealand earners.
Indicative figures — refer to Stats NZ — Income Statistics for the latest official data.
Where your tax goes
Approximate breakdown of NZD 0 in PAYE income tax allocated across NZ Government spending categories. Note: income tax is one component of total Crown revenue alongside GST, corporate tax, and other levies.
New Zealand Tax Rates Reference
IRD-confirmed personal income tax rates for the 2025–26 tax year (1 April 2025 – 31 March 2026), ACC earner levy, KiwiSaver, IETC, student loan thresholds, and tax codes. All figures sourced from official Inland Revenue, ACC, and Treasury data.
Personal Income Tax Brackets · 2025–26
Progressive PAYE rates apply to taxable income for New Zealand tax residents. NZ has no tax-free threshold — every dollar of taxable income is taxed. These thresholds were updated on 31 July 2024 and apply for the full 2025–26 tax year.
| Taxable Income | Rate | Tax on This Income |
|---|---|---|
| NZD 0 – 15,600 | 10.5% | 10.5¢ for each $1 = NZD 1,638 at top of bracket |
| NZD 15,601 – 53,500 | 17.5% | NZD 1,638 + 17.5¢ for each $1 over NZD 15,600 = NZD 8,270.50 |
| NZD 53,501 – 78,100 | 30% | NZD 8,270.50 + 30¢ for each $1 over NZD 53,500 = NZD 15,650.50 |
| NZD 78,101 – 180,000 | 33% | NZD 15,650.50 + 33¢ for each $1 over NZD 78,100 = NZD 49,277.50 |
| Above NZD 180,000 | 39% | NZD 49,277.50 + 39¢ for each $1 over NZD 180,000 |
Note: ACC earner levy (1.67% in 2025–26, 1.75% from 1 April 2026) is deducted in addition to PAYE on liable earnings up to the cap. The trustee tax rate is 39% from 1 April 2024 (de minimis: 33% for trusts with annual income under NZD 10,000).
ACC Earner Levy 2025–26
Funds the no-fault accident compensation scheme. Deducted alongside PAYE.
KiwiSaver 2025–26
Voluntary retirement savings scheme. Default minimum rates from 1 July 2007.
Student Loan 2025–26
Compulsory repayments via PAYE for borrowers using "SL" tax codes.
ACC Earner Levy — Year-by-Year
The ACC earner levy is reviewed annually based on the scheme's funding requirements. Both the rate and the maximum liable earnings cap are adjusted.
| Levy Year | Rate | Max Liable Earnings | Max Annual Levy |
|---|---|---|---|
| 2024–25 | 1.60% | NZD 142,283 | NZD 2,276.53 |
| 2025–26 (current) | 1.67% | NZD 152,790 | NZD 2,551.59 |
| 2026–27 (upcoming) | 1.75% | NZD 156,641 | NZD 2,741.22 |
KiwiSaver Contribution Rate Timeline
Per Budget 2025, the default minimum contribution rate is rising in two stages.
employee / employer
temporary reduction available
final scheduled increase
max NZD 260.72/year
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. Members earning over NZD 180,000 are no longer eligible for the government contribution from 1 July 2025.
NZ Tax Codes for Individuals
Your tax code tells your employer how much PAYE to deduct. Choose the right primary code for your main job and a secondary code for any other jobs.
Primary Codes (Main Job)
| Code | Use When |
|---|---|
| M | Main job · no IETC · no student loan |
| ME | Main job · eligible for Independent Earner Tax Credit (income NZD 24k–70k, no WFF/benefit/super) |
| M SL | Main job with student loan (no IETC) |
| ME SL | Main job with both IETC eligibility AND student loan |
Secondary Codes (Second Jobs)
Pick the secondary code based on your combined total income from all sources. Add "SL" suffix if you have a student loan (e.g., S SL, ST SL).
| Code | Total Income (all sources) | Flat Rate |
|---|---|---|
| SB | Up to NZD 15,600 | 10.5% |
| S | NZD 15,601 – 53,500 | 17.5% |
| SH | NZD 53,501 – 78,100 | 30% |
| ST | NZD 78,101 – 180,000 | 33% |
| SA | Above NZD 180,000 | 39% |
Non-declaration rate of 45% applies if no IRD number or completed IR330 is provided to your employer.
Independent Earner Tax Credit (IETC) · 2025–26
A tax credit of up to NZD 520 per year for individuals earning between NZD 24,000 and NZD 70,000 who do not receive Working for Families, NZ Super, an income-tested benefit, or a student allowance.
| Income Range | IETC Entitlement |
|---|---|
| Below NZD 24,000 | No credit |
| NZD 24,000 – 66,000 | NZD 520/year (NZD 10/week, full credit) |
| NZD 66,001 – 70,000 | Abates 13¢/$ over NZD 66,000 |
| Above NZD 70,000 | No credit |
Use tax code ME (or ME SL with student loan) to receive IETC through your pay. Otherwise, IRD applies it at the end-of-year auto-assessment. The upper threshold was lifted from NZD 48,000 to NZD 70,000 on 31 July 2024.
Working for Families Tax Credits · 2025–26
A package of tax credits for families with dependent children under 18. Administered by IRD, paid weekly, fortnightly, or as an end-of-year lump sum.
| Credit | Base Amount / Rate |
|---|---|
| Family Tax Credit (FTC) — eldest child | NZD 7,524/year |
| FTC — each subsequent child | NZD 6,153/year |
| In-Work Tax Credit (IWTC) base — 1–3 children | NZD 5,070/year |
| IWTC additional — 4+ children | NZD 780/year per extra child |
| Best Start Tax Credit (under age 1, all) | NZD 73/week |
| Best Start (ages 1–2, income-tested) | Up to NZD 73/week |
| Minimum Family Tax Credit (MFTC) threshold | NZD 35,316/year (after-tax) |
| Family Income Abatement Threshold (from 1 Apr 2026) | NZD 44,900 |
From 1 April 2026, the IWTC base rate receives a temporary +NZD 50/week boost (one year, or until petrol price condition is met). FamilyBoost ECE rebate is separate from WFF — up to 40% of weekly fees, capped at NZD 1,560/quarter, with a NZD 229,100 income cut-off.
Other Tax Credits & Deductions
Common items individuals can claim or use to reduce tax payable. NZ does not have broad-based deductions for individual salary/wage earners — most are paid via PAYE without itemised deductions.
New Zealand Tax News & Updates
Recent IRD announcements, Budget 2025 measures, KiwiSaver changes, and policy shifts affecting New Zealand taxpayers — sourced from official government channels.
KiwiSaver Minimum Contribution Rises to 3.5% from 1 April 2026
From 1 April 2026, the default KiwiSaver employee and employer contribution rates rise from 3% to 3.5% of gross pay. The change applies automatically to anyone on the default rate. A further increase to 4% is scheduled for 1 April 2028.
Key Changes from 1 April 2026
- Default rate: 3% → 3.5% for both employee and employer
- Higher options unchanged: employees can still choose 4%, 6%, 8%, or 10%
- 16- and 17-year-olds: become eligible for compulsory employer contributions for the first time
- Next step: further increase to 4% scheduled for 1 April 2028
Temporary Rate Reduction
From 1 February 2026, members can apply to IRD for a temporary rate reduction (3–12 months) to stay at 3%. If approved, the employer can also choose to match at 3% only.
Take-home Pay Impact
For someone on NZD 75,000 default rate, the change reduces weekly take-home by about NZD 7.20 — directing more to retirement savings.
ACC Earner Levy Rises to 1.75% from 1 April 2026
The ACC earner levy increases for the 2026–27 levy year, with both the rate and the maximum liable earnings cap going up.
2025–26 (current)
- Rate: 1.67%
- Max liable earnings: NZD 152,790
- Max levy: NZD 2,551.59
2026–27 (from 1 April 2026)
- Rate: 1.75%
- Max liable earnings: NZD 156,641
- Max levy: NZD 2,741.22
In-Work Tax Credit Temporary Boost: +NZD 50/week from 1 April 2026
Working families receive a temporary NZD 50/week increase to the In-Work Tax Credit (IWTC) base rate from 1 April 2026, on top of regular Family Tax Credit indexation.
What's Changing
- IWTC boost: +NZD 50 per week base rate increase for 2026–27 only
- Sunset clause: runs until petrol prices fall below NZD 3 per litre for 4 consecutive weeks, or one year — whichever is earlier
- Approximately 150,000 families impacted — total Working for Families population is around 430,000
- Family Tax Credit abatement: threshold lifts to NZD 44,900 from 1 April 2026
2026–27 Tax Year Begins — Brackets Unchanged
The new tax year (1 April 2026 – 31 March 2027) begins with personal income tax brackets unchanged from 2025–26. The 31 July 2024 threshold updates remain in full effect.
Brackets Continue from 2025–26
- NZD 0–15,600: 10.5%
- NZD 15,601–53,500: 17.5%
- NZD 53,501–78,100: 30%
- NZD 78,101–180,000: 33%
- Above NZD 180,000: 39%
No tax-free threshold — every dollar of taxable income is taxed.
Government KiwiSaver Contribution Halved from 1 July 2025
From 1 July 2025, the government's matching KiwiSaver contribution was halved as a Budget 2025 cost-saving measure. High earners are also no longer eligible.
Old (until 30 June 2025)
- Match rate: 50¢ per $1 contributed
- Max annual: NZD 521.43
- To get max: contribute NZD 1,042.86
- Eligibility: aged 18–64
New (from 1 July 2025)
- Match rate: 25¢ per $1 contributed
- Max annual: NZD 260.72
- To get max: contribute NZD 1,042.86
- NZD 180k+ earners: no longer eligible
New Eligibility for 16- and 17-Year-Olds
Workers aged 16 and 17 became eligible for the government KiwiSaver contribution from 1 July 2025 — the first time this age group has qualified. Employer contributions for 16- and 17-year-olds will follow on 1 April 2026.
Budget 2025: Investment Boost — 20% Asset Write-off for Businesses
Finance Minister Nicola Willis delivered Budget 2025 on 22 May 2025. The flagship policy is "Investment Boost" — an immediate 20% deduction for new productive business assets.
Investment Boost Mechanics
- 20% immediate deduction on new productive business assets acquired from 22 May 2025
- Recorded as depreciation in IR10 financial statements summary
- Treasury projects 1% GDP and 1.5% wage uplift over 20 years (half within 5 years)
- Companies still depreciate the remaining 80% under standard rules
No New Personal Tax Cuts
Budget 2025 did not introduce further personal income tax bracket changes — the 2024 threshold updates remain in place.
KiwiSaver Reforms
Government contribution halved (1 July 2025); employee/employer minimums rise to 3.5% from 1 April 2026; 4% from 1 April 2028.
FamilyBoost Expanded — 40% Refund and Higher Cap from Q3 2025
FamilyBoost — the early childhood education rebate scheme — was expanded from 1 July 2025 to support more families with higher refund rates and an increased income threshold.
Old (1 Jul 2024 – 30 Jun 2025)
- Refund: 25% of ECE costs
- Quarterly cap: NZD 975
- Income cut-off: NZD 180,000
New (from 1 July 2025)
- Refund: 40% of ECE costs
- Quarterly cap: NZD 1,560 (NZD 120/week)
- Income cut-off: NZD 229,100
- Slower abatement (7% from NZD 35k/quarter)
Updated Tax Brackets Apply for Full 2025–26 Year
From 1 April 2025, the personal income tax thresholds first introduced on 31 July 2024 apply for the entire tax year — no more transitional blended calculations.
Updated Thresholds (Effective 1 April 2025 – 31 March 2026)
- 10.5% on income up to NZD 15,600 (was up to NZD 14,000)
- 17.5% on NZD 15,601–53,500 (was up to NZD 48,000)
- 30% on NZD 53,501–78,100 (was up to NZD 70,000)
- 33% on NZD 78,101–180,000 (unchanged)
- 39% above NZD 180,000 (unchanged)
Average earner on NZD 78,100 avoids the 33% bracket entirely — saving roughly NZD 1,040 per year compared to the old thresholds.
Mortgage Interest Deductibility Restored to 100% for Rentals
For the 2025–26 tax year, residential rental property owners can claim 100% of mortgage interest as a deductible expense. The phase-back was completed.
Restoration Timeline (for properties acquired before 27 March 2021)
- 2024 tax year: 50% deductible
- 2025 tax year: 80% deductible
- 2026 tax year: 100% deductible (full restoration)
For rental properties acquired on or after 27 March 2021, full deductibility was already available. Note that the bright-line test was also reduced to 2 years from 1 July 2024.
Fees Free Switches from First-Year to Final-Year Model
From 1 January 2025, the Fees Free tertiary scheme moved from a first-year model to a final-year model, with transitional rules for 2024 learners.
What Changed
- Old model: first year of tertiary study fees-free
- New model: final year fees-free (paid as a credit at completion)
- Aimed at incentivising students to complete qualifications
- Transitional rules for those who started under the old scheme in 2024
- Student loan threshold for 2024–25 and 2025–26: NZD 24,128 (12% repayment)
Personal Income Tax Thresholds Increased — First Update Since 2010
From 31 July 2024, NZ's personal income tax thresholds were lifted for the first time in 14 years (since 2010), as part of Budget 2024's NZD 3.7 billion tax relief package.
Old Thresholds (pre-2024)
- 10.5% to NZD 14,000
- 17.5% to NZD 48,000
- 30% to NZD 70,000
- 33% to NZD 180,000
- 39% above NZD 180,000
New Thresholds (from 31 Jul 2024)
- 10.5% to NZD 15,600
- 17.5% to NZD 53,500
- 30% to NZD 78,100
- 33% to NZD 180,000
- 39% above NZD 180,000
Transitional Rules for 2024–25
Because the changes landed mid-year, the 2024–25 tax year used blended thresholds — a mix of old and new. Full thresholds apply cleanly from 1 April 2025 onwards.
IETC Eligibility Extended — Upper Threshold Lifted to NZD 70,000
The Independent Earner Tax Credit upper income threshold was lifted from NZD 48,000 to NZD 70,000 from 31 July 2024, making approximately 420,000 additional taxpayers eligible.
Old (pre-July 2024)
- Full credit: NZD 24,000–44,000
- Abates 13¢/$ over NZD 44,000
- Cuts off at NZD 48,000
- Max credit: NZD 520/year
New (from 31 July 2024)
- Full credit: NZD 24,000–66,000
- Abates 13¢/$ over NZD 66,000
- Cuts off at NZD 70,000
- Max credit: NZD 520/year (unchanged)
How to Claim
Use tax code ME for your main job (or ME SL if you have a student loan). Eligibility excludes those receiving Working for Families, NZ Super, an income-tested benefit, or a student allowance.
In-Work Tax Credit Base Rate Increased by NZD 25/week
The IWTC base rate was increased by NZD 25 per week from 31 July 2024 — the first base-rate boost in years, providing additional support to working families.
IWTC Change
- Old base rate: NZD 3,770/year
- New base rate (31 Jul 2024): NZD 5,070/year
- Increase: NZD 1,300/year (+NZD 25/week)
Minimum Family Tax Credit
The MFTC threshold increased from NZD 35,204 to NZD 35,316 per year (after-tax) from 31 July 2024 — keeping working families slightly better off than receiving a benefit.
FamilyBoost Childcare Rebate Launched 1 July 2024
A new childcare rebate scheme launched 1 July 2024, allowing parents to claim back up to 25% of their weekly early childhood education costs (later expanded to 40% in July 2025).
Original Settings (1 July 2024 – 30 June 2025)
- 25% rebate on weekly ECE fees
- Cap: NZD 75/week (NZD 975/quarter)
- Eligibility: household income under NZD 180,000
- Abates from NZD 140,000 family income
- Claimed quarterly via myIR (upload ECE invoices)
- Children must be aged 5 or under
FamilyBoost was significantly expanded from 1 July 2025 — see the 2025 update.
Bright-line Test Reduced to 2 Years from 1 July 2024
The bright-line test for residential property — which taxes profits when sold within a specified period — was reduced from 10 years to 2 years from 1 July 2024.
Bright-line Period History
- Pre-29 March 2018: 2 years
- 29 Mar 2018 – 26 Mar 2021: 5 years
- 27 Mar 2021 – 30 Jun 2024: 10 years (5 years for new builds)
- From 1 July 2024: 2 years for all residential property
A property sold within 2 years of acquisition is taxed on the gain at the seller's marginal rate. The bright-line test does not apply to your main home (with some exceptions), inherited property, or transfers under relationship property settlements.
Trust Tax Rate Raised from 33% to 39% on 1 April 2024
From 1 April 2024, the trustee tax rate increased from 33% to 39% — aligning with the top personal marginal tax rate to reduce structuring incentives.
Key Points
- Old trustee rate: 33%
- New trustee rate: 39%
- Aligns with top personal marginal rate (39% above NZD 180k)
- De minimis threshold: trusts with annual income under NZD 10,000 remain at 33%
- Affects tax planning structures using trusts to retain income
Frequently Asked Questions
Common questions about New Zealand PAYE, ACC earner levy, KiwiSaver, student loans, and tax credits — answers verified against official IRD, ACC, and Treasury guidance.
Important Disclaimer
For educational and informational purposes only. This calculator produces estimates based on the inputs provided and IRD personal income tax brackets for the 2025–26 tax year (1 April 2025 to 31 March 2026). New Zealand uses a progressive tax structure from 10.5% to 39% with no tax-free threshold — every dollar of taxable income is taxed. The ACC earner levy is calculated at 1.67% of liable earnings up to NZD 152,790 for 2025–26 (1.75% on earnings up to NZD 156,641 from 1 April 2026). KiwiSaver contributions use the default 3% employee + 3% employer rate (rising to 3.5% each from 1 April 2026 per Budget 2025). Student loan repayments are calculated at 12% of every dollar earned above the annual threshold of NZD 24,128 for borrowers using an "SL" tax code. The Independent Earner Tax Credit (IETC) of up to NZD 520 is included where eligibility conditions are met for "ME" or "ME SL" tax codes.
No warranty of accuracy. While Money Snap takes reasonable care to source figures from official authorities (Inland Revenue, Treasury, ACC), this calculator is provided "as is" without any express or implied warranty as to accuracy, completeness, timeliness, or fitness for any particular purpose. Rates, thresholds, KiwiSaver rules, ACC levies, and tax credits change frequently — figures shown may be out of date, and individual circumstances, secondary income, residency status, Working for Families entitlements, and income types not captured by the inputs may materially affect actual tax obligations.
Not financial advice. Information provided is general in nature only and does not take into account your personal objectives, financial situation, or needs. Results do not constitute financial, tax, or legal advice and use of this calculator does not create an advisory relationship. For official tax computation and to manage your tax affairs, refer directly to Inland Revenue via myIR. Before acting on any figure shown, obtain personal advice from a chartered accountant or registered tax agent in New Zealand.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense — direct or indirect — arising from reliance on this calculator or the information it produces. Users are responsible for verifying all figures with the relevant authority before relying on them. Use of this calculator is subject to our Terms of Use.
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