ACC Earner's Levy Calculator
Calculate how much ACC earner's levy you pay — 1.75% on earnings up to the annual cap for 2026-27.
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The take-home pay calculator combines ACC levy with all other deductions to show your actual net pay.
Calculate your take-home pay →About the ACC Earner's Levy
The ACC (Accident Compensation Corporation) earner's levy covers you for non-work injuries. All employed New Zealanders pay this levy through PAYE alongside income tax.
The levy is a flat percentage of your wages and salary, applied only up to an annual cap. Earnings above the cap are not levied, so the levy you pay tops out at a maximum each year.
This calculator computes the earner's levy only — the levy every employee and self-employed person pays for non-work injury cover. If you run a business or work for yourself, you'll also pay a Work levy and a Working Safer levy on top; see the self-employed & business levies section below.
ACC earner's levy rates by year
| Tax year | Rate | Maximum liable earnings | Maximum levy |
|---|---|---|---|
| 2027-28(confirmed, not yet in force) | 1.83% | $160,244 | $2,932.47 |
| 2026-27 | 1.75% | $156,641 | $2,741.22 |
| 2025-26 | 1.67% | $152,790 | $2,551.59 |
| 2024-25 | 1.60% | $142,283 | $2,276.53 |
2027-28 rates were Cabinet-confirmed on 2 December 2024 as part of ACC's 2025/26–2027/28 three-year levy-setting round and take effect from 1 April 2027. For the full 10-year rate and cap history, see our ACC earner's levy history research page.
Worked examples (2026-27)
Employee on $70,000 a year
- Earnings are below the $156,641 cap, so the full salary is levied.
- ACC levy: $70,000 × 1.75% = $1,225.00.
- Collected through PAYE — about $23.56 a week, on a separate payslip line from income tax.
- It isn't part of your PAYE income tax bracket calculation — see income tax vs PAYE below.
Earnings above the cap — $200,000 a year
- Only the first $156,641 of earnings is levied — the rest is levy-free.
- ACC levy: $156,641 × 1.75% = $2,741.22 — the maximum levy for 2026-27.
- Levy deductions stop for the rest of the ACC year once you cross the cap, usually partway through the year for high earners.
- Effective rate on the full $200,000: 1.37% — lower than the headline 1.75% because the cap limits the levied portion.
How the earner's levy interacts with PAYE
Your payslip usually shows PAYE income tax and the ACC earner's levy as two separate deduction lines, but both come out of the same gross pay in the same pay run. Payroll software calculates them independently: income tax uses the progressive PAYE brackets, while the ACC levy is a flat 1.75% up to the $156,641 cap — there's no interaction between the two rates.
This is why "how much tax do I pay" gives different answers depending on the calculator. Our income tax calculator reports PAYE income tax only, matching the "PAYE" figure IRD quotes. Our PAYE calculator and take-home pay calculator bundle income tax, ACC, KiwiSaver, and student loan together to show what actually lands in your bank account. Neither is "wrong" — they're answering different questions.
ACC levies for self-employed & businesses
Employees pay one ACC levy. Self-employed people and business owners pay up to three:
| Levy | What it covers | 2026-27 rate |
|---|---|---|
| Earner's levy | Non-work injury cover — the same levy employees pay | 1.75% of liable earnings (this calculator) |
| Work levy | On-the-job injury cover — rate depends on your industry Classification Unit (CU) | Varies by CU — see examples below |
| Working Safer levy | Flat levy collected on behalf of WorkSafe NZ | $0.08 per $100 of liable earnings (GST-exclusive) |
Our calculator above computes the earner's levy only. It does not estimate the Work levy or Working Safer levy, because the Work levy rate depends on your specific Classification Unit — use ACC's own CoverPlus Extra estimator for a business-specific figure.
Classification units (CU) and the Work levy
ACC groups every business and self-employed activity into one of 500+ Classification Units (CUs), matched from your declared business activity or BIC (Business Industry Classification) code. Each CU carries its own Work levy rate per $100 of liable earnings, reflecting that industry's typical injury risk — a road freight driver and a software contractor pay very different Work levy rates for otherwise identical income.
| CU code | Industry | Work levy (per $100, self-employed) |
|---|---|---|
| 78340 | Computer systems design and related services | $0.02 |
| 95260 | Hairdressing and beauty services | $0.50 |
| 86330 | Ambulance services | $0.99 |
| 41110 | House construction | $1.53 |
| 61100 | Road freight transport | $2.25 |
Rates from the ACC Levy Guidebook 2026/27, shown GST-exclusive as ACC publishes them. This is a small sample, not a lookup table — if you're searching for a specific CU (e.g. CU 86330, Ambulance services), confirm your own rate on your ACC invoice or via ACC's estimator, since the CU assigned depends on your declared activity, not just your job title.
CoverPlus vs CoverPlus Extra
| CoverPlus (standard) | CoverPlus Extra (CPX) | |
|---|---|---|
| Enrolment | Automatic for all self-employed people | Optional — you apply and choose a cover level |
| Compensation if injured | Up to 80% of taxable income from your most recently completed IR3 | Fixed at the agreed cover amount, regardless of actual trading income that year |
| Liable earnings for 2026-27 | Minimum $50,501, maximum $156,641 | Choose any amount between $40,401 and $125,313 |
| Best suited to | Stable, predictable trading income | Fluctuating or seasonal income, or wanting certainty over the compensation amount |
CPX also offers a Lower Level of Weekly Compensation (LLWC) option — a slightly lower levy in exchange for reduced compensation if the business keeps generating income during a claim. Figures verified for 2026-27 from ACC's self-employed cover pages (see sources below).
First-year self-employed and invoicing timing
ACC calculates your levy from the income you declare to Inland Revenue on your IR3, so it can't invoice you until that return has been filed and assessed. CoverPlus invoices typically go out from around September each year, based on the prior year's IR3 income. In practice, that means a first-year self-employed person often doesn't receive their first ACC invoice until well into their second year of trading — it isn't a bill you should expect in your first few months.
GST and the ACC levy
ACC's own business-facing rate tables (the Levy Guidebook) quote every levy — earner's, Work, and Working Safer — GST-exclusive. But the rate that actually reaches your payslip or invoice is GST-inclusive: for 2026-27, the Guidebook's GST-exclusive average earner's levy is lower than the 1.75% figure IRD quotes and payroll deducts. If you're reconciling an ACC invoice against the Levy Guidebook's published rates, expect the two figures to differ by the GST component — check with your accountant on how to code the levy line in your GST return.
Frequently asked questions
What is the ACC earner's levy?
The ACC earner's levy funds the Accident Compensation Corporation, which provides no-fault personal injury cover for all New Zealanders. Employees have it deducted through the PAYE system along with income tax; self-employed people are invoiced directly by ACC.
What is the ACC levy rate and cap for 2026-27?
For 2026-27 the rate is 1.75% on earnings up to $156,641, giving a maximum levy of $2,741.22. For 2025-26 it was 1.67% up to $152,790 (max $2,551.59).
Is the ACC levy a tax?
Not technically — it's a compulsory levy, not a tax. It funds a specific scheme (no-fault accident cover) rather than general government spending, and it's set by ACC's own levy-setting process rather than the annual Budget. In practice it behaves like a tax on your payslip: compulsory, deducted at source, and non-negotiable.
Who pays the ACC earner's levy, and what income counts?
Anyone earning salary, wages, schedular payments, or self-employment income pays it. It does not apply to passive income — interest, dividends, PIE income, rental income, or capital gains are not liable. Shareholder-employees pay it on PAYE salary drawn from their company, but not on dividends received from the same company.
What happens when I hit the cap mid-year?
Once your year-to-date earnings cross the cap ($156,641 for 2026-27), ACC stops being deducted for the rest of the income year and your net pay rises by the levy rate. The cap resets on 1 April each year.
How does the earner's levy show up next to income tax?
It's a separate PAYE deduction line, not part of your income tax. Two calculators can show different 'total tax' figures for the same salary depending on whether ACC is bundled in — our income tax calculator shows PAYE income tax only, while our take-home pay and PAYE calculators include the ACC levy alongside it.
Do self-employed people pay a different levy to employees?
Self-employed people pay the same earner's levy rate as employees, but not through PAYE — ACC invoices them directly (usually around September) based on the income declared on their IR3. On top of that, self-employed people and business owners also pay a Work levy and a Working Safer levy, which our calculator does not include (see the self-employed section below).
Why is my ACC invoice a different-looking number to the PAYE rate?
ACC's own business-facing rate tables (the Levy Guidebook) quote levies GST-exclusive. The rate actually deducted via PAYE and invoiced to individuals — 1.75% for 2026-27 — is the GST-inclusive figure. That's why the "average earner's levy" quoted in ACC/MBIE's rate-setting documents can look lower than the percentage on your payslip.
Sources
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ACC Earner's Levy History
10-year rate, cap, and cumulative cost trend.
ACC Earner's Levy Explained
Rates, cap, and how the levy works, in plain language.
Last updated July 2026. Reflects the 1 April 2026 rate rise to 1.75% and $156,641 cap, plus Cabinet-confirmed 2027-28 rates. Rates sourced from ACC and IRD.
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