ESCT Calculator
Calculate Employer Superannuation Contribution Tax on your KiwiSaver employer contributions. See how much tax is deducted before it reaches your account.
Used to determine your ESCT rate. Leave blank to use current year salary.
A new employee's rate is based on what they will earn from their start month to 31 March.
ESCT rates for 2026-27, based on salary plus employer contributions from the prior year: 10.5% ($0 – $18,720) · 17.5% ($18,721 – $64,200) · 30.0% ($64,201 – $93,720) · 33.0% ($93,721 – $216,000) · 39.0% ($216,001+).
About ESCT
Employer Superannuation Contribution Tax (ESCT) is the tax deducted from your employer's contributions to KiwiSaver (or other superannuation schemes) before they reach your fund. Rather than adding the employer contribution to your taxable income, ESCT taxes it at source at your marginal tax rate.
The ESCT rate bands run 10.5%, 17.5%, 30%, 33%, and 39%, but on their own dollar thresholds (not the PAYE ones). Your rate is set by your total salary plus employer KiwiSaver contributions from the previous tax year.
ESCT is a final tax, so there is no year-end wash-up for you in either direction. Your employer's contribution is excluded income, so it does not go into your tax return. If your ESCT rate is lower than your marginal tax rate (for example because your income jumped from the prior year) you owe nothing extra, and if it is higher you cannot claim the difference back. The rate is worked out from the prior year's income and is not changed mid-year. If you think your employer used the wrong band, ask them to check it: the withholding and any shortfall are the employer's responsibility to put right with Inland Revenue.
ESCT rate thresholds (from 1 April 2025)
The threshold amount is your gross salary plus your employer's KiwiSaver contribution for the prior tax year.
| Salary + employer contribution | ESCT rate |
|---|---|
| $0 – $18,720 | 10.5% |
| $18,721 – $64,200 | 17.5% |
| $64,201 – $93,720 | 30% |
| $93,721 – $216,000 | 33% |
| $216,001+ | 39% |
Worked examples (2026-27, 3.5% employer rate)
$45,000 salary
Employer contribution $1,575.00 × ESCT 17.5% = $275.63 tax. $1,299.38 reaches your KiwiSaver.
$70,000 salary
Employer contribution $2,450.00 × ESCT 30% = $735.00 tax. $1,715.00 reaches your KiwiSaver.
The ESCT rate is set by your prior-year salary plus employer KiwiSaver, so a pay rise this year doesn't change your rate until next year.
Frequently asked questions
What is ESCT (Employer Superannuation Contribution Tax)?
ESCT is a tax on employer contributions to KiwiSaver and other superannuation schemes. Instead of being taxed as part of your income, employer contributions are taxed at your marginal tax rate through the ESCT system. The tax is deducted before the contribution reaches your KiwiSaver account, so the amount that actually lands in your fund is the net after ESCT.
How is my ESCT rate determined?
Your ESCT rate is based on your total salary plus employer KiwiSaver contributions from the previous tax year (1 April to 31 March). Since 1 April 2025 the thresholds are: 10.5% up to $18,720, 17.5% for $18,721–$64,200, 30% for $64,201–$93,720, 33% for $93,721–$216,000, and 39% over $216,000. If you did not work for this employer for the whole previous tax year (for example, you started the job part-way through the year), your employer uses its estimate of your salary plus employer contributions for the current tax year instead; for a mid-year start that is the part year to 31 March. Choose your start month in the calculator to see it.
How is ESCT different from PAYE?
PAYE is deducted from your salary before you receive your pay. ESCT is a separate tax on your employer's KiwiSaver contribution only. Both use marginal tax rates, but PAYE applies to your salary income while ESCT applies only to the employer's contribution amount — and the two use slightly different dollar thresholds. You never receive the ESCT amount; your employer deducts it and pays it to IRD.
Did KiwiSaver rates change in 2026-27?
Yes. From 1 April 2026, the minimum employer KiwiSaver contribution rose from 3% to 3.5% (Taxation (Budget Measures) Act 2025 s 22(1), replacing KiwiSaver Act 2006 s 101D(4)). The default employee rate for auto-enrolled members rose from 3% to 3.5% on the same day (s 20(1), amending s 64(1)(a)), not to 4%. Because ESCT applies to the employer contribution, a higher employer rate means more ESCT for the same salary. Both rates rise again to 4% on 1 April 2028 (ss 20(2) and 22(2), in force under s 2(6)).
How does ESCT impact my retirement savings?
ESCT reduces the amount of employer contributions that actually reach your KiwiSaver account. For example, on a $70,000 salary with a 3.5% employer contribution ($2,450), an ESCT rate of 30% takes $735 and only $1,715 reaches your fund. Over 30+ years of contributions, this tax drag compounds significantly.
Related Calculators
Sources
Rates sourced from IRD — Employer Superannuation Contribution Tax (ESCT) and IRD — Employer KiwiSaver Contributions.
Rates sourced from IRD.