Income Tax Calculator NZ 2026 (PAYE & ACC Earner Levy)

Estimate your New Zealand income tax for the 2025–26 tax year. Includes PAYE on the post-July-2024 brackets, ACC earner levy, KiwiSaver contributions, student loan repayments, and secondary tax codes.

How New Zealand tax brackets work in 2026

New Zealand uses a progressive marginal PAYE system. The brackets that took effect on 31 July 2024 — and apply for the 2025–26 tax year — are:

Taxable income	Marginal rate
$0 – $15,600	10.5%
$15,601 – $53,500	17.5%
$53,501 – $78,100	30%
$78,101 – $180,000	33%
$180,001+	39%

NZ doesn't have a tax-free threshold like Australia — every dollar from the first attracts at least 10.5% PAYE. There's no GST exemption either at the personal income level; GST applies only to business turnover above $60,000.

The brackets above exclude the ACC earner levy (currently 1.75% of liable earnings up to a cap, from 1 April 2026), which is collected through PAYE and shows on your payslip as part of the deduction.

ACC earner levy explained

The ACC earner levy funds the Accident Compensation Corporation's coverage of non-work injuries — the universal no-fault accident insurance scheme that's distinctive to New Zealand. The levy is charged on salary, wages, and self-employed earnings.

For the ACC year starting 1 April 2026 (2026–27) the rate is 1.75% of liable earnings (GST inclusive). The levy applies up to an annual earnings cap of $156,641 for 2026–27. The prior ACC year (1 April 2025 – 31 March 2026) was 1.67% with a $152,790 cap. Both the rate and the cap are reviewed annually by ACC and Cabinet — earnings above the cap are not subject to the earner levy.

The levy is collected by IRD as part of PAYE, so it's not a separate payment you make — it's bundled into your tax deduction. It's a real cost to take-home pay, though, and the calculator displays it as a distinct line so you can see the impact.

KiwiSaver contributions and their effect on take-home pay

If you're enrolled in KiwiSaver, your contributions come out of your pre-tax pay at a rate you choose: 3%, 4%, 6%, 8%, or 10%. Your employer contributes a minimum of 3% on top of that.

The government adds a member tax credit of up to $521.43 per year, on the basis of 50 cents for every dollar you contribute, capped at $1,042.86 of your contributions. To capture the full government contribution you need to contribute at least $1,042.86 in the year — anyone earning above ~$35,000 at the 3% rate hits this automatically.

KiwiSaver reduces your take-home pay but isn't an income tax deduction — it's a forced savings deduction. The contribution itself is taxed at your marginal PAYE rate before going into your KiwiSaver account, with the tax taken out via Employer Superannuation Contribution Tax (ESCT) on the employer's portion.

For more detailed projection of your retirement balance and the first-home withdrawal mechanics, use the KiwiSaver Calculator.

Working for Families tax credits

Working for Families (WFF) is a package of tax credits for parents and caregivers with dependent children. The four main components:

1. Family Tax Credit (FTC) — paid per child, with rates depending on the child's age. Abated above a family income threshold (currently around $42,700, abating at 27% per dollar above the threshold).
2. In-Work Tax Credit (IWTC) — paid to working families. Requires a minimum number of hours worked per week and an income source other than benefits.
3. Best Start Tax Credit — for children under 3, paid universally for the first year and income-tested in years 2 and 3.
4. Minimum Family Tax Credit (MFTC) — guarantees a minimum after-tax income for working families with children.

WFF can be received as a regular fortnightly payment from IRD or claimed as an end-of-year lump sum. Many families opt for the regular payment for cashflow stability, but this requires accurate income forecasting — under-forecasting income leads to an end-of-year repayment.

Secondary tax codes for multiple jobs

If you have a second (or third) job, your second employer uses a secondary tax code that doesn't account for the lower-rate brackets already used at your main job. The codes:

• SB — combined income up to $15,600
• S — combined income $15,601 – $53,500
• SH — combined income $53,501 – $78,100
• ST — combined income $78,101 – $180,000
• SA — combined income above $180,000

Choosing the right code is your responsibility. If your secondary code is lower than it should be, you'll get a bill at year-end reconciliation. If it's higher, you'll get a refund (but you've over-paid through the year).

The IRD also allows a special tax code for irregular situations (large bonuses, multiple part-time jobs averaging out to one full-time) — apply through myIR if your standard code isn't a good fit.

PAYE and end-of-year reconciliation

Most salaried New Zealanders don't file a tax return. IRD runs an automatic income reconciliation after 31 March each year, comparing PAYE withheld against actual tax owed based on all reported income. You'll receive either:

• A refund (auto-deposited to your bank account)
• A bill (with payment options)
• A nil-balance notice

You do need to actively file a return if you have:

• Rental income
• Business or self-employed income
• Foreign income
• More than $200 of interest, dividends, or other untaxed income
• Wage subsidy or benefit overpayments to reconcile
• Claims for donation rebates, working from home, or other deductions

For most workers, the automatic reconciliation is sufficient — IRD has the data from your employer, your KiwiSaver provider, and your bank. Where it commonly goes wrong is when you've used a secondary tax code that didn't match your true combined income, leading to either a surprise refund or a surprise bill.

GST for sole traders earning over $60,000

If your sole trader or business turnover exceeds $60,000 in any 12-month period (or you reasonably expect it to), GST registration is compulsory. Once registered, you:

• Charge 15% GST on your sales (added to your invoice)
• Claim back the GST you've paid on business expenses
• File a GST return monthly, two-monthly, or six-monthly depending on turnover and choice

You can voluntarily register below the $60,000 threshold — useful if your customers are GST-registered themselves (so the GST is invisible to them) and you want to claim back the GST on your inputs.

GST is separate from income tax. The 15% GST you collect from customers is held in trust for IRD; it never belongs to you. The income tax on your business profit is separate and assessed on your provisional tax dates throughout the year.