PAYE 10.5–39% · ACC 1.75% (cap $156,641) · default KiwiSaver 3% · IETC up to $520. Nationwide IRD employee withholding for tax year 1 Apr 2026 – 31 Mar 2027, with live ladders from the same engine as our New Zealand salary calculator.
By Sammy S. · Founder · AuthorUpdated for 2026
PAYE
10.5–39%
ACC
1.75%
ACC cap
$156,641
KiwiSaver
3%
IETC max
$520
Tax year
2026
New Zealand withholds PAYE income tax and the ACC earner levy from most salary and wage earners through their employer. KiwiSaver employee contributions (when you are enrolled) are also deducted from pay. Employer KiwiSaver contributions are paid on top of salary and do not reduce your take-home.
PAYE uses progressive brackets on gross income. ACC is a flat percentage with a maximum liable earnings cap. Neither KiwiSaver nor ACC reduces the PAYE tax base — they are separate deductions from take-home.
Rates on this hub come from IRD published tables for the 2026/2027 tax year (1 April–31 March) and the same engine as our New Zealand paycheck calculator. Confirm against your payslip and myIR.
PAYE brackets run from 10.5% on the first $15,600 through 39% above $180,000. Only the income inside each band is taxed at that band’s rate.
The Independent Earner Tax Credit (IETC) can reduce PAYE by up to $520 for mid-income earners who do not receive Working for Families. Full credit applies from $24,000 to $66,000; it phases out to zero by $70,000.
ACC earner levy for 2026/27 is 1.7500000000000002% of gross, capped at $156,641 of liable earnings (maximum annual levy $2,741). IRD publishes this rate including GST.
KiwiSaver employee rates are typically 3%, 4%, 6%, 8%, or 10% of gross. The default modelled here is 3%. Contributions are deducted after PAYE is calculated.
If you have an IRD student loan, repayments are 12% of income above $24,128 (threshold frozen from 2025/26). That is a debt repayment, not a tax. The standard Tax Insights ladder omits student loan so salary bands stay comparable.
Use the New Zealand calculator when you need a different KiwiSaver rate or student loan on.
Living in Auckland, Wellington, Christchurch, or elsewhere does not change IRD PAYE brackets, ACC, or KiwiSaver rules for the same gross salary.
Cost of living — rent, transport, childcare — still varies sharply by city. Use Tax Insights for payroll math, and our city salary guides for lifestyle context.
Secondary tax codes, multiple jobs, and rental income can change your end-of-year position even when the primary-job PAYE looks “right” on each payslip.
Tax Insights is the editorial hub: IRD facts, salary ladders, methodology, glossary, FAQs, and sources.
The New Zealand calculator lets you change KiwiSaver rate, toggle student loan, add a bonus, and model other deductions for a personalised figure from the same engine.
Both surfaces use the same PAYE + ACC + KiwiSaver engine.
Same order of operations as the New Zealand salary calculator methodology — PAYE (with IETC), ACC, then KiwiSaver.
1.Start with gross income
Your annual employment income before any deductions, including any annual bonus. Employer KiwiSaver contributions are paid on top and do not affect your take-home.
2.Calculate PAYE income tax
NZ PAYE is applied directly to gross income — KiwiSaver and ACC do not reduce your taxable income. Each bracket's rate only applies to the portion of income within that band.
3.Apply IETC credit (if eligible)
The Independent Earner Tax Credit (up to $520/year) is subtracted from PAYE for earners on $24,000–$70,000 who don't receive Working for Families credits. Full $520 applies from $24,000–$66,000; phases out to zero at $70,000. The credit cannot reduce PAYE below zero.
4.ACC earner levy
The ACC earner levy funds New Zealand's universal accident compensation scheme. The 2026/27 rate is 1.75% of gross income, capped at maximum liable earnings of $156,641 (max levy $2,741.22). Unlike PAYE, ACC is a flat percentage with no progressive bands.
5.KiwiSaver employee contribution
KiwiSaver is deducted from take-home pay after PAYE is calculated — it does not reduce your taxable income. The default employee rate is 3%. You can opt out or change your rate.
6.Student loan repayment (optional)
If you have an NZ student loan, 12% of income above the $24,128 threshold is deducted through PAYE. The threshold was raised from $22,828 and is now frozen indefinitely from 2025/26. This is a debt repayment, not a tax — it doesn't reduce your taxable income.
7.Take-home pay
Your take-home is gross income minus all the deductions above. Effective rate = total deductions ÷ gross. Marginal PAYE rate is the bracket rate on your next dollar of income.
Pure-salary employee, 3% KiwiSaver, no student loan, tax year 2026. Live engine output:
Gross
$80,000
PAYE
$16,278
ACC
$1,400
KiwiSaver (3%)
$2,400
Take-home
$59,923
≈ $4,994/month net · effective rate 25.1% · Run your own numbers
| Constant | Value |
|---|---|
| PAYE bracket 1 | 10.5% on $0–$15,600 |
| PAYE bracket 2 | 17.5% on $15,600–$53,500 |
| PAYE bracket 3 | 30% on $53,500–$78,100 |
| PAYE bracket 4 | 33% on $78,100–$180,000 |
| PAYE bracket 5 | 39% above $180,000 |
| ACC earner levy (2026/27) | 1.75% of gross income up to $156,641 (max $2,741.22) |
| KiwiSaver default (employee) | 3% of gross |
| KiwiSaver minimum (employer) | 3% of gross |
| IETC maximum | NZ$520/year |
| IETC full credit range | $24,000–$66,000 (phases out to $70,000) |
| Student loan threshold | $24,128 (frozen from 2025/26) |
| Student loan repayment rate | 12% above threshold |
| Minimum wage (from Apr 2025) | $23.15/hour |
Keeping the ladder comparable means omitting items that belong in a full compensation model:
Short definitions aligned with IRD terminology used on this hub and the calculator. Example figure: $80,000 gross is our default worked example.
New Zealand's income tax withholding system. Your employer deducts tax from every pay packet before you receive it, using the IRD's published PAYE tables.
A levy at 1.75% of gross income (2026) that funds the Accident Compensation Corporation. ACC provides no-fault cover for injuries in NZ — in exchange, you cannot sue for personal injury.
A workplace savings scheme where you contribute 3%–10% of gross pay and your employer adds a minimum 3%. Funds are locked in until age 65 (with exceptions for first-home purchase or serious hardship).
A tax credit of up to $520/year for individuals earning $24,000–$70,000 who don't receive Working for Families credits. Full $520 credit from $24,000–$66,000; phases out to zero at $70,000. Applied through the ME tax code.
The PAYE rate that applies to the next dollar of income. In NZ 2026, this ranges from 10.5% to 39% depending on which band your income falls into.
Total modelled deductions (PAYE after IETC, plus ACC, plus KiwiSaver and any student loan you include) ÷ gross income. Always lower than your marginal PAYE rate because lower brackets apply to the first portions of income.
Compulsory deduction of 12% on income above $24,128 (threshold frozen from 2025/26), collected through PAYE. Not a tax — goes directly toward reducing your IRD student loan balance.
A regulated investment fund structure (including KiwiSaver funds). PIE investment returns are taxed at your Prescribed Investor Rate (PIR), capped at 28%.
A set of tax credits for families with dependent children in NZ. Income-tested and administered by the IRD separately from PAYE.
The IRD's online portal where you can view your income tax assessment, update your tax code, apply for a savings suspension, and check your student loan balance.
The rate at which your PIE income (KiwiSaver, managed fund returns) is taxed. Based on your income: 10.5%, 17.5%, or 28%. Must be set correctly to avoid under- or over-paying tax on investment returns.
A code (M, ME, S, SB, SH, ST, etc.) provided to your employer on an IR330 form that tells them how much PAYE to deduct. Using the wrong code is the most common cause of an unexpected tax bill or missed refund.
The IRD form used to declare your tax code to a new employer. You must complete this when starting a job. Without one, your employer withholds PAYE at the no-notification rate — the highest possible rate.
Your unique 8 or 9-digit tax identifier issued by the Inland Revenue Department. Required to work, receive KiwiSaver contributions, open a bank account, and file any NZ tax obligations.
Advance income tax payments made by self-employed individuals or those with income not subject to PAYE. Paid in three instalments per year to spread the tax liability. Required if expected residual income tax exceeds $5,000.
A payment to a contractor where the payer withholds tax at a prescribed rate (commonly 20%) rather than the contractor paying it themselves. Common in labour hire, advertising, and certain professional services.
The government-funded pension paid to eligible people aged 65+ who have lived in NZ for at least 10 years since age 20. Approximately $878/week after tax for a single person living alone (2026). Taxable income subject to PAYE.
A new NZ tax resident who has not been resident in NZ for the previous 10 years. Eligible for a four-year exemption from NZ tax on most foreign-sourced income. A significant tax planning opportunity for skilled migrants.
Single employee — PAYE + ACC + default 3% KiwiSaver (no student loan).
New Zealand @ $80,000
$59,923
PAYE $16,278 · ACC $1,400 · KiwiSaver $2,400 · 25.1% effective
New Zealand @ $100,000
$72,373
PAYE $22,878 · ACC $1,750 · KiwiSaver $3,000 · 27.6% effective
Single employee, 3% KiwiSaver, student loan omitted. Effective % is (PAYE + ACC + KiwiSaver) ÷ gross.
| Gross | PAYE | ACC | KiwiSaver | Take-home | Eff. % |
|---|---|---|---|---|---|
| $40,000 | $5,388 | $700 | $1,200 | $32,712 | 18.2% |
| $50,000 | $7,138 | $875 | $1,500 | $40,487 | 19% |
| $60,000 | $9,701 | $1,050 | $1,800 | $47,450 | 20.9% |
| $75,000 | $14,721 | $1,313 | $2,250 | $56,717 | 24.4% |
| $80,000 | $16,278 | $1,400 | $2,400 | $59,923 | 25.1% |
| $100,000 | $22,878 | $1,750 | $3,000 | $72,373 | 27.6% |
| $120,000 | $29,478 | $2,100 | $3,600 | $84,823 | 29.3% |
| $150,000 | $39,378 | $2,625 | $4,500 | $103,498 | 31% |
| $200,000 | $57,078 | $2,741 | $6,000 | $134,181 | 32.9% |
IRD progressive rates for tax year 1 Apr 2026 – 31 Mar 2027 — each rate applies only to income inside that band.
| Rate | Range |
|---|---|
| 10.5% | $0 – $15,600 |
| 17.5% | $15,600 – $53,500 |
| 30% | $53,500 – $78,100 |
| 33% | $78,100 – $180,000 |
| 39% | Above $180,000 |
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