๐Ÿ‡ณ๐Ÿ‡ฟ New Zealand

Income Tax Calculator New Zealand 2025/26

Calculate your PAYE income tax, ACC earner's levy, and take-home pay using the latest IRD rates. No tax-free threshold โ€” every dollar is taxed from $1.

No tax-free threshold. New Zealand taxes income from the first dollar at 10.5%. There is no personal allowance or tax-free amount.
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Gross annual salary or wages before tax
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These are estimates only. Consult a tax professional or Inland Revenue (IRD) for your specific situation.

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How to Use This Calculator

Tab "Tax Breakdown"

Enter your annual gross income (salary or wages before tax). The calculator shows PAYE tax by bracket, ACC earner's levy, IETC if eligible, total deductions, take-home pay, and your effective tax rate. A detailed bracket-by-bracket table shows exactly how your tax is calculated.

Tab "Pay Period"

Enter your annual income and select your pay frequency (weekly, fortnightly, or monthly). The calculator breaks down your gross pay, PAYE, ACC levy, and take-home pay for each pay period. Useful for understanding your actual payslip deductions.

Tab "Compare Years"

Enter your income to see a side-by-side comparison of the 2024/25 and 2025/26 tax years. The 2025/26 year introduced higher bracket thresholds, which means lower tax for most earners. See exactly how much you save under the new rates.

The Formulas

PAYE income tax brackets 2025/26:
$0 - $15,600: 10.5%
$15,601 - $53,500: 17.5%
$53,501 - $78,100: 30%
$78,101 - $180,000: 33%
$180,001+: 39%

Important: No tax-free threshold. The first dollar earned is taxed at 10.5%.

ACC earner's levy:
1.60% on earnings up to $152,790 (max ~$2,445/year)

IETC (Independent Earner Tax Credit):
$520/year for income $24,000 - $44,000 (full credit)
Reduces by $1 per $13 above $44,000, nil above $48,000

Total deductions = PAYE + ACC - IETC
Take-home pay = Gross income - Total deductions

All rates are for the 2025/26 tax year (1 April 2025 - 31 March 2026) as published by Inland Revenue (IRD). The ACC earner's levy rate is set annually by ACC and may change slightly each year.

Example

James โ€” Software Developer, Salary $75,000

Full-time employee, no secondary income, no benefits received.

$15,600 ร— 10.5%$1,638.00
$37,900 ร— 17.5%$6,632.50
$21,500 ร— 30%$6,450.00
Total PAYE$14,720.50
ACC earner's levy (1.60%)$1,200.00
IETC$0 (income > $48K)
Total deductions$15,920.50
Take-home pay$59,079.50
Effective tax rate21.2%

James keeps about 78.8% of his gross salary. Under the previous 2024/25 brackets, his PAYE would have been $15,470 โ€” the new brackets save him $749.50 per year ($28.83 per fortnight).

2025/26 NZ Tax Brackets

BracketRateTax on Bracket
$0 - $15,60010.5%$1,638
$15,601 - $53,50017.5%$6,633
$53,501 - $78,10030%$7,380
$78,101 - $180,00033%$33,627
Over $180,00039%varies
ACC earner's levy1.60%max ~$2,445
IETC (if eligible)โ€”up to -$520

Frequently Asked Questions

For the 2025/26 tax year (1 April 2025 - 31 March 2026), the brackets are: 10.5% on $0-$15,600, 17.5% on $15,601-$53,500, 30% on $53,501-$78,100, 33% on $78,101-$180,000, and 39% on income over $180,000. These thresholds were increased from the previous year to provide tax relief.
No. New Zealand has no tax-free threshold, personal allowance, or basic personal amount. Every dollar of income is taxed from the first dollar at 10.5%. This is different from Australia ($18,200 tax-free), the UK (ยฃ12,570 personal allowance), and Canada ($16,129 basic personal amount).
The ACC earner's levy is a compulsory contribution to New Zealand's no-fault accident compensation scheme. All earners pay approximately 1.60% on income up to $152,790 per year. It covers personal injury from any cause, whether at work or not. Your employer deducts it from your pay alongside PAYE.
The Independent Earner Tax Credit (IETC) is worth up to $520/year for individuals earning between $24,000 and $48,000 who do not receive any income-tested government benefits (such as Working for Families, NZ Super, or a student allowance). The full credit applies up to $44,000 income, then phases out by $1 for every $13 above $44,000.
The New Zealand tax year (income year) runs from 1 April to 31 March. The current 2025/26 tax year started on 1 April 2025 and ends on 31 March 2026. This is different from the US and Canada (calendar year January-December) and Australia (1 July - 30 June).

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