NZ PAYE Tax Calculator 2025-26
Calculate your New Zealand take-home pay after PAYE income tax, ACC earners' levy, and KiwiSaver deductions. Uses the 2025-2026 IRD tax brackets and the current ACC levy rate. Enter your salary and we show your annual, monthly, fortnightly, and weekly net pay — all calculated privately in your browser.
How NZ PAYE Tax Works in 2025-2026
PAYE (Pay As You Earn) is New Zealand's system for collecting income tax directly from wages and salaries. Your employer deducts the correct amount of tax each pay period and pays it to Inland Revenue on your behalf. This means most employees never need to file a tax return — IRD calculates whether you owe tax or are due a refund at the end of the year and handles it automatically through your myIR account.
New Zealand uses a progressive tax system with five income brackets for 2025-2026. The first $14,000 of income is taxed at 10.5%, income between $14,001 and $48,000 at 17.5%, income between $48,001 and $70,000 at 30%, income between $70,001 and $180,000 at 33%, and any income above $180,000 at 39%. Only the portion of income in each bracket is taxed at that rate — your entire salary is not taxed at your top marginal rate.
For example, on a $75,000 salary: you pay 10.5% on the first $14,000, 17.5% on the next $34,000, and 30% on the remaining $27,000. This progressive structure means your effective tax rate is always lower than your marginal (top) rate.
ACC Levy and Other PAYE Deductions
On top of income tax, employees pay the ACC earners' levy — 1.60% of your income up to a maximum of $139,384 for 2024-25. The ACC (Accident Compensation Corporation) provides no-fault cover if you are injured at work or in an accident, including medical costs and 80% of your lost income while you recover. This levy is compulsory for all employees and the self-employed.
KiwiSaver contributions are the other main PAYE deduction. Your contribution (3%, 4%, 6%, 8%, or 10% of gross pay) is deducted automatically unless you have opted out. Your employer must also contribute a minimum of 3% of your gross pay on top of your salary — this does not reduce your take-home but is shown in your KiwiSaver account. Non-residents working in New Zealand are subject to a flat non-resident withholding tax (NRWT) rate of 15% on all NZ-source employment income rather than the progressive resident rates.
Student loan repayments are also collected through PAYE at 12% of income above the annual repayment threshold of $22,828. If you earn below this threshold in a pay period, no repayments are deducted. Repayments are automatically adjusted to reflect your actual income over the full year through the end-of-year reconciliation process.
Understanding Your NZ Take-Home Pay
Your effective tax rate is the total tax (income tax plus ACC levy) divided by your gross income — this is a more meaningful measure of your tax burden than the marginal rate. For a $75,000 salary, the effective rate is around 18-19%, well below the top marginal rate of 30% that applies to the final slice of that salary.
If you want to maximise your take-home pay, the most straightforward legal strategies are: contributing the minimum KiwiSaver rate that still captures the employer match (3%), claiming any working for families tax credits you are entitled to, and ensuring you are on the right tax code with IRD. The wrong tax code (such as using the "M SL" code without a student loan) can result in over- or under-deductions that need to be corrected at year end.
This calculator uses the 2025-2026 IRD rates including the five income tax brackets and 1.60% ACC levy rate. All calculations run locally in your browser — no salary data is ever sent to a server. For complex situations including secondary employment, rental income, or shareholder salary, consult a registered tax agent or use IRD's online tools at ird.govt.nz.
2026 NZ PAYE Rates
For pay periods from 1 April 2026, Inland Revenue keeps the post-July 2024 personal income tax thresholds: 10.5% up to $15,600, 17.5% on $15,601–$53,500, 30% on $53,501–$78,100, 33% on $78,101–$180,000, and 39% above $180,000. The ACC earner levy is 1.67% on liable earnings up to a maximum of $152,790 for the 2026-27 levy year (1 April 2026 – 31 March 2027). The student loan repayment threshold is $24,128 (12% above the threshold) and the Independent Earner Tax Credit (up to $520) phases in between $24,000 and $66,000 of net income — confirmed via ird.govt.nz. To plan around these numbers also try the NZ Income Tax Calculator, the ACC Earner Levy Calculator, the KiwiSaver Calculator, the KiwiSaver Contribution Calculator, the Student Loan Repayment Calculator, and the Working for Families Calculator.
Secondary Tax Codes (S, SH, ST, SB) — How to Pick the Right One
If you have a second job or earn from multiple employers, you must use a secondary tax code so combined PAYE doesn't underdeduct. For 2026-27, the choices map to your total income from all sources: SB if you expect $0–$15,600 (10.5%), S if $15,601–$53,500 (17.5%), SH if $53,501–$78,100 (30%), ST if $78,101–$180,000 (33%), and SA if your total exceeds $180,000 (39%). Use SB SL/S SL/SH SL/ST SL/SA SL if you also have a student loan. The wrong code is the most common cause of a bill at year end — confirm via IRD's tax code chooser. Cross-check with our NZ income tax calculator and secondary income tax calculator before signing your next IR330.
Independent Earner Tax Credit (IETC) — Are You Eligible in 2026-27?
From 31 July 2024 the IETC threshold lifted and from 1 April 2025 the maximum credit rose to $520 per year (~$10 per week). You qualify if your net income is between $24,000 and $66,000 AND you don't receive Working for Families, NZ Super, a Veteran's Pension, or a main benefit at any point in the year. The credit phases out at 13 cents per dollar above $44,000, hitting $0 at $66,000. Your tax code must include "ME" or "ME SL" to get IETC automatically via PAYE — otherwise you claim it at end of year. If Working for Families is in play, run the Working for Families calculator instead. Also keep these in your bookmarks: student loan calculator, KiwiSaver projector, ACC earner levy, GST calculator, RWT interest tax, and FBT calculator.
NZ PAYE 2026-27 Tax Year Deadlines
The NZ tax year runs 1 April 2026 – 31 March 2027. Employers must file the Employment Information return through payday filing within 2 working days of each payday (10 days if filing by paper). End-of-year PAYE reconciliation runs automatically for most salary earners — IRD issues an income tax assessment between late May and July 2027 if you only have employment income. Income tax returns (IR3) for those with extra income are due 7 July 2027 without a tax agent or 31 March 2028 with extension of time. Choose the right tax code for 2026-27: M for primary income with no student loan, M SL if you have a student loan, S/SH/ST for secondary income depending on the higher-bracket rate, or you'll pay too much through PAYE — see ird.govt.nz/key-dates. Keep an eye on rate-rise risk via the Mortgage Rate Rise Calculator, NZ Super income via the NZ Super Rate Calculator, FBT exposure with the FBT Calculator, RWT on bank deposits via the RWT Interest Tax Calculator, gross sales with the NZ GST Calculator, and a working holidaymaker refund via the WHV Tax Refund Estimator. Last updated 2026-05-23 with Inland Revenue (ird.govt.nz) 2026-27 rates, secondary tax codes, and IETC thresholds.
Frequently Asked Questions
What is PAYE tax in New Zealand?
PAYE stands for Pay As You Earn. It is the system New Zealand employers use to deduct income tax, ACC levies, and KiwiSaver contributions directly from your wages before you receive them. Inland Revenue (IRD) sets the tax rates and bands, and your employer pays the deductions to IRD on your behalf every pay period. The result is your take-home or net pay.
How is NZ income tax calculated for 2025-2026?
New Zealand uses a progressive tax system with five brackets for 2025-2026: 10.5% on income up to $14,000; 17.5% on $14,001 to $48,000; 30% on $48,001 to $70,000; 33% on $70,001 to $180,000; and 39% on income above $180,000. Only the portion of income in each bracket is taxed at that rate — not your entire salary.
What is the ACC levy and do I have to pay it?
The ACC earners' levy funds New Zealand's Accident Compensation scheme, which covers medical costs and loss of earnings if you are injured. For 2024-2025, the rate is 1.60% on your first $139,384 of income. It is compulsory — all employees and self-employed people pay it automatically as part of PAYE.
How does KiwiSaver affect my take-home pay?
Your KiwiSaver employee contribution (3%, 4%, 6%, 8%, or 10%) is deducted from your gross pay before you receive it. This reduces your take-home pay but builds your retirement balance. Your employer also contributes a minimum of 3% on top of your salary — that portion does not reduce your pay. If you have opted out of KiwiSaver, select 0% in this calculator.
What is the student loan repayment threshold in NZ?
New Zealand-based student loan borrowers repay 12 cents for every dollar earned above the repayment threshold, which is $22,828 per year (2024-25). Repayments are deducted automatically by your employer under PAYE. If your income is below the threshold you make no repayments. You can make voluntary extra repayments at any time to pay off your loan faster.
What is the highest income tax rate in New Zealand?
The top marginal income tax rate in New Zealand is 39%, applying to income above $180,000 per year. This was introduced from 1 April 2021. The effective (average) tax rate on a $180,000 salary is considerably lower than 39% because only the portion above $180,000 is taxed at that rate — the first $14,000 is taxed at 10.5%, and so on up through the brackets.
What are the 2026-27 NZ PAYE rates and thresholds?
For pay periods from 1 April 2026, IRD applies 10.5% up to $15,600, 17.5% on $15,601–$53,500, 30% on $53,501–$78,100, 33% on $78,101–$180,000, and 39% above $180,000. The ACC earner levy is 1.67% on liable earnings up to $152,790, the student loan repayment rate is 12% above the $24,128 threshold, and the Independent Earner Tax Credit can give up to $520 to those earning $24,000–$66,000 (abated above $66,000).
When does my employer file PAYE for the 2026-27 tax year?
Employers use payday filing — the Employment Information return must be sent to IRD within 2 working days of each payday (10 days for paper filers). The 2026-27 NZ tax year runs 1 April 2026 to 31 March 2027. Salary-only earners receive an automatic income tax assessment from IRD between May and July 2027. If you also have rental, self-employed or investment income, your IR3 is due 7 July 2027, or 31 March 2028 with a tax agent extension — see ird.govt.nz/key-dates.
Which secondary tax code do I use for a second job in 2026-27?
Pick the code based on your total income across all jobs: SB if total is $0-$15,600 (10.5%), S if $15,601-$53,500 (17.5%), SH if $53,501-$78,100 (30%), ST if $78,101-$180,000 (33%), and SA above $180,000 (39%). Add "SL" to any code if you have a student loan (e.g. SH SL). The wrong code is the main cause of a year-end bill — use IRD's tax code chooser at ird.govt.nz before completing your IR330.
Do I qualify for the Independent Earner Tax Credit (IETC) in 2026-27?
You qualify if your net income is between $24,000 and $66,000 AND you don't receive Working for Families, NZ Super, a Veteran's Pension, or a main benefit at any point in the year. The maximum credit is $520 per year (~$10 per week), abating at 13 cents per dollar above $44,000 and reaching zero at $66,000. Use tax code ME (or ME SL with a student loan) to receive IETC automatically via PAYE; otherwise IRD applies it at year-end through your automatic assessment.