NZ Income Tax Calculator 2025-26 & 2026-27

For 2025-26: 10.5% on $0 – $15,600; 17.5% on $15,601 – $53,500; 30.0% on $53,501 – $78,100; 33.0% on $78,101 – $180,000; 39.0% on $180,001+. There is no personal allowance — tax applies from the first dollar.

No. Unlike Australia or the UK, New Zealand has no personal allowance or tax-free threshold. Tax is payable from the first dollar of income earned.

Your marginal tax rate is the rate applied to your last dollar of income — the highest bracket you fall into. It differs from your effective rate, which is your total tax as a percentage of gross income.

PAYE (Pay As You Earn) is the system employers use to deduct income tax from wages and salaries before paying employees. IRD sets the rates and your employer remits the tax directly.

This calculator shows tax on total taxable income using the standard progressive brackets. If you hold a second job, each employer withholds PAYE separately using your tax code (M/ME on your main job, a secondary code like SB/S/SH/ST/SA on the other). Use the Tax Code Checker to confirm you're using the right code on each job — using the wrong one causes over- or under-withholding during the year.

This calculator shows income tax only. Your payslip also deducts the ACC earner's levy, and — if applicable — KiwiSaver and student loan repayments. For a full gross-to-net breakdown including all of those, use the Take-Home Pay Calculator or the PAYE Calculator.

If you earn income that isn't taxed at source (self-employment, rental, or investment income) and your residual income tax is likely to exceed the provisional tax threshold, IRD requires instalment payments during the year rather than one lump sum after filing. Use the Provisional Tax Calculator to estimate your instalments.

IETC is a credit of up to $520/year for people earning between $24,000 and $70,000 who don't receive a main benefit, Working for Families, NZ Super, or an overseas equivalent. The full credit applies up to $66,000, then abates 13 cents per dollar to zero at $70,000. It isn't included in this calculator's result — check your eligibility with the IETC Calculator.

No. ACC earner's levy is a separate PAYE deduction that funds NZ's accident compensation scheme — it isn't income tax and isn't included in the figures above. For 2026-27 it's 1.75% up to $156,641 of earnings (1.67% up to $152,790 for 2025-26). Use the ACC Levy Calculator to add it to your total deductions.

If you're on the right tax code and only have PAYE income, IRD automatically assesses most people between late May and July after the tax year ends on 31 March, and pays any refund without you needing to file. If you have other income (self-employment, rental, overseas income) you generally need to file an IR3. See how to get your tax refund or the Tax Refund Estimator.