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.
ESCT rates match your marginal tax rate: 10.5% / 17.5% / 30% / 33% / 39% based on salary + employer KS from the prior year.
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 are aligned with the PAYE income tax brackets: 10.5%, 17.5%, 30%, 33%, and 39%. Your rate is determined by your total salary plus employer KiwiSaver contributions from the previous tax year.
If your ESCT rate is lower than your actual marginal tax rate (e.g., because your income increased significantly from the prior year), you may have a small year-end wash-up obligation. Conversely, if your rate is higher, you cannot claim a refund — ESCT is a final tax.
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). The rate matches the PAYE marginal tax brackets: 10.5%, 17.5%, 30%, 33%, or 39%. If you don't have a prior year salary (e.g., new to the workforce), your current year salary plus employer contributions is used instead.
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 the marginal tax rate, but PAYE applies to your entire salary income and ESCT applies only to the employer's contribution amount.
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). The default employee rate for auto-enrolled members also increased from 3% to 4%. The employer rate will rise again to 4% from 1 April 2028.
How does ESCT impact my retirement savings?
ESCT reduces the amount reaching your KiwiSaver. For example, a $70,000 salary with 3% employer contribution ($2,100) at a 30% ESCT rate means $630 in tax and only $1,470 to your fund. Over 30+ years of contributions, this tax drag compounds significantly.
Related Calculators
Sources
Rates sourced from IRD — Employer KiwiSaver Contributions and IRD — Tax Rates for Individuals.
Last updated May 2026. Rates sourced from IRD.