What is the New Zealand Income Tax?
New Zealand has no tax-free threshold — PAYE starts from the first dollar at 10.5% and rises through five bands to 39%. There is no separate social security tax.
All earners pay the ACC earners levy of about 1.53% funding accident cover. KiwiSaver is a voluntary retirement scheme where employers must contribute at least 3% if you participate.
Formula & worked example
Net = Salary − PAYE − ACC levy − KiwiSaver − student loan
Worked example: an $85,000 salary pays about $17,928 PAYE and $1,301 ACC. With 3% KiwiSaver ($2,550), net annual pay is roughly $63,200, or about $1,216 a week — plus $2,550 of employer KiwiSaver going into your retirement account.
How to use this new zealand income tax calculator
- Enter your gross annual salary.
- Choose your KiwiSaver contribution rate — 3% is the minimum to get the employer match.
- Tick student loan if you have one; repayments are 12% above the threshold.
- Note that ACC is capped at a maximum earnings level.
Smart tips
- Contributing at least 3% to KiwiSaver captures the compulsory employer match — declining it is turning down free money.
- The government KiwiSaver contribution requires a minimum personal contribution each year; check you qualify.
- New Zealand has no capital gains tax on most long-held assets, though the bright-line test catches some property sales.
- There is no tax-free threshold, so even small side incomes are taxable from the first dollar.
- ACC levies are capped, so the effective rate falls slightly on very high salaries.
Frequently asked questions
What are New Zealand income tax rates?
10.5%, 17.5%, 30%, 33% and 39% across five progressive bands, starting from the first dollar earned.
What is the ACC earners levy?
A compulsory levy of about 1.53% of earnings funding New Zealand's no-fault accident compensation scheme.
How does KiwiSaver work?
You contribute 3–10% of pay, your employer must add at least 3%, and the government adds an annual contribution if you meet the minimum.
Is there a tax-free threshold in New Zealand?
No. Unlike Australia or the UK, PAYE applies from the first dollar of income.
Want the theory behind the numbers? Read our NZ tax guides on the Money Blog.