NZ Income Tax Calculator 2025–26
Calculate your New Zealand PAYE income tax, ACC earner levy, and KiwiSaver contributions for the 2025–26 tax year. Instant take-home pay estimate — IRD compliant.
How NZ Income Tax Works
New Zealand uses a progressive PAYE (Pay As You Earn) tax system, administered by the Inland Revenue Department (IRD). Tax is deducted from your wages automatically by your employer each pay period. The more you earn, the higher the rate applied to the top portion of your income — but lower brackets are always taxed at their lower rates.
2025–26 NZ Income Tax Brackets
These are the IRD PAYE brackets effective for the 2025–26 tax year (1 April 2025 – 31 March 2026). Each bracket applies only to the portion of income within that range.
| Income Band (NZD) | Tax Rate | Max Tax in Band | Notes |
|---|---|---|---|
| $0 – $15,600 | 10.5% | $1,638 | Lowest band — all earners |
| $15,601 – $53,500 | 17.5% | $6,632.50 | Middle band |
| $53,501 – $78,100 | 30% | $7,380 | Upper-middle band |
| $78,101 – $180,000 | 33% | $33,627 | Higher earners |
| Over $180,000 | 39% | No cap | Top rate — introduced 2021 |
ACC Earner Levy & KiwiSaver
ACC Earner Levy
The Accident Compensation Corporation (ACC) earner levy is deducted from wages to fund NZ's no-fault accident insurance scheme. For 2025–26, the rate is 1.67 cents per dollar (1.67%) on income up to the earner levy maximum of $152,790 for 2025–26. Income above this cap is not levied.
KiwiSaver
KiwiSaver is NZ's voluntary retirement savings scheme. Employees can contribute 3%, 4%, 6%, 8%, or 10% of their gross pay. Your employer must also contribute a minimum of 3%. Contributions are deducted before you receive your pay — reducing your take-home but building your retirement fund.
Independent Earner Tax Credit (IETC)
If you earn between $24,000 and $70,000 per year and do not receive Working for Families tax credits, you may be entitled to the IETC — worth up to $520 per year. The full credit applies up to $66,000, then phases out at 13 cents per dollar between $66,000–$70,000.
How to Use This Calculator
Non-Resident Tax in New Zealand
Non-residents earning income from NZ sources are subject to a flat Non-Resident Withholding Tax (NRWT). Unlike residents, non-residents pay tax only on NZ-sourced income (not worldwide income), but they are not entitled to the IETC. Employees on working holiday visas who have been in NZ for fewer than 183 days are typically considered non-residents for tax purposes.
| Income Band | Non-Resident Rate |
|---|---|
| $0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| Over $180,000 | 39% |
Note: Non-residents use the same bracket rates as residents but are not eligible for the IETC. ACC earner levy still applies to non-residents working in NZ.
Key Highlights
Frequently Asked Questions
NZ income tax uses a progressive system. Each bracket rate applies only to the income within that band. For example, on a $60,000 salary: the first $15,600 is taxed at 10.5% ($1,638), the next $37,900 at 17.5% ($6,632.50), and the remaining $6,500 at 30% ($1,950) — giving a total PAYE tax of $10,220.50.
The ACC earner levy rate for 2025–26 is $1.67 per $100 of liable earnings (1.67%), applied on income up to the maximum liable earnings threshold of $152,790. If you earn more than this, ACC is not charged on the excess.
KiwiSaver is opt-out — new employees are automatically enrolled and must actively opt out within the first 56 days if they don't wish to join. If enrolled, the minimum employee contribution is 3% of gross pay. Your employer must also contribute at least 3% (the employer contribution is on top of your take-home, not deducted from it).
The IETC is a tax credit for individuals earning between $24,000 and $70,000 who do not receive Working for Families tax credits. The maximum credit is $520 per year. The full credit applies up to $66,000, then reduces by 13 cents for every dollar between $66,000 and $70,000. You claim it through your tax code (use the "M" tax code if eligible).
Your marginal rate is the rate applied to your last dollar of income (i.e., which bracket your top dollar falls in). Your effective rate is your total tax paid divided by total gross income — it is always lower than the marginal rate because lower brackets are taxed at lower rates.
Most salaried employees in NZ do not need to file an annual return because PAYE is deducted at source. IRD automatically issues an "income tax assessment" each year. However, you should file if you have: income from multiple sources, rental income, overseas income, or are self-employed.
The New Zealand tax year runs from 1 April to 31 March each year (unlike Australia's July–June year). So the 2025–26 tax year covers 1 April 2025 to 31 March 2026. IRD assessments for each year are generally issued between May and July of the following year.