NZ PAYE Calculator 2026-27
Enter your gross pay for one pay period and your tax code. We'll show exactly what your employer should deduct for income tax, ACC, student loan, and KiwiSaver — and what should land in your bank account.
Non-standard pay
When the standard PAYE calculation is not enough
IRD's standard salary-and-wages tool does not cover extra pays, tailored tax codes, special student-loan deduction rates, schedular payments, child support or other lump sums. Use the matching specialist calculator below instead of forcing those payments into regular gross pay.
How PAYE is calculated in New Zealand
PAYE (Pay As You Earn) is how Inland Revenue collects income tax from salary and wage earners — see our full PAYE explainer for the underlying mechanics. Your employer withholds PAYE from each pay and forwards it to IRD. "PAYE" on your payslip is narrower than "everything deducted from your pay" — here's exactly what's inside the PAYE calculation, and what's a separate deduction that just happens to come out of the same pay run.
Inside PAYE (this calculator computes both)
- Income tax calculated on your annualised gross income using NZ's progressive brackets (10.5% / 17.5% / 30% / 33% / 39%)
- ACC earner's levy at 1.75% on income up to $156,641 per year (2026-27; 1.67% up to $152,790 in 2025-26) — see the ACC Levy Calculator
Outside PAYE core — deducted from the same pay, but a separate calculation
- Student loan repayments (12% on income above $24,128) if your tax code ends in "SL" — see the Student Loan Calculator
- KiwiSaver employee contribution at your chosen rate (3% / 3.5% / 4% / 6% / 8% / 10%, default 3.5% for auto-enrolled members from 1 April 2026) — see the KiwiSaver Calculator
- ESCT (Employer Superannuation Contribution Tax) — a tax on your employer's KiwiSaver contribution, not yours. It's deducted before the employer contribution reaches your KiwiSaver account, so it never appears as a line on your own pay, but it affects how much of the employer's contribution lands in your fund. See the ESCT Calculator
Primary vs secondary tax codes
If you only have one job, you use a primary code (M, ME, M SL, or ME SL). Income tax is calculated using the progressive brackets — each dollar is taxed at the rate of the bracket it falls into.
If you have a second job, that job uses a secondary code (SB, S, SH, ST, or SA — plus "SL" if you have a student loan). Secondary codes withhold a flat rate matched to the marginal bracket your combined income falls into. This is because your primary employer has already used up your lower brackets.
NZ tax code rates (2025-26 & 2026-27)
| Code | Use case | Rate / mechanism |
|---|---|---|
| M | Primary, no student loan | Progressive 10.5%–39% |
| ME | Primary, IETC eligible ($24k–$70k) | Progressive with $520 IETC credit |
| M SL | Primary, with student loan | Progressive + 12% over $24,128 |
| ME SL | Primary, IETC + student loan | Progressive + IETC + 12% SL |
| SB | Secondary, total income ≤$15,600 | Flat 10.5% |
| S | Secondary, total $15,601–$53,500 | Flat 17.5% |
| SH | Secondary, total $53,501–$78,100 | Flat 30% |
| ST | Secondary, total $78,101–$180,000 | Flat 33% |
| SA | Secondary, total over $180,000 | Flat 39% |
Worked examples by tax code
Same $80,000 annual salary, four different tax code outcomes at 2026-27 rates. Shows how IETC, student loan, and the M-vs-ME distinction shift take-home.
M code (no student loan)
- Annual income: $80,000
- Income tax (progressive): $16,278
- ACC earner levy (1.75% to $156,641): $1,400
- KiwiSaver (3%): $2,400
- Annual take-home: $59,923
- Monthly (gross / 12): $6,667 → net $4,994
ME code ($24k-$70k IETC eligible)
- $80k earner not eligible — IETC eligibility ends at $70,000
- For $40,000 earner: $520 IETC credit applies in full
- For $68,000 earner: $520 minus (($68,000 − $66,000) × $0.13) = $520 − $260 = $260 (abates from $66,000)
- ME credit is built into per-pay PAYE withholding
- Year-end IR3 reconciles any over- or under-withholding
M SL (with student loan)
- Annual income: $80,000
- Income tax + ACC: same as M = $17,678
- Student loan: 12% × ($80,000 − $24,128) = $6,705
- KiwiSaver (3%): $2,400
- Annual take-home: $53,218
- Student loan is post-tax — reduces take-home further
SH (secondary on $30k job, combined > $53,500)
- Secondary annual income: $30,000
- SH flat rate: 30% on all $30,000 = $9,000
- ACC levy on second job: 1.75% × $30,000 = $525
- Second-job take-home: $20,475 + KiwiSaver if elected
- If actual combined income lands in a lower bracket, year-end IR3 refunds the over-withholding
PAYE deduction tables by salary (2026-27)
Full deduction stack for three common salaries — M tax code, no student loan, KiwiSaver at the 3.5% default employee rate. Figures are engine-computed with the same calculatePAYE function the calculator above uses, shown as both an annual total and a per-fortnight figure (the most common NZ pay frequency). Prefer a ready-made lookup by gross pay? See our weekly and fortnightly PAYE deduction tables for 2026-27.
| Salary | Income tax | ACC levy | KiwiSaver (3.5%) | Net (annual) | Net (per fortnight) |
|---|---|---|---|---|---|
| $55,000 | $8,721 | $963 | $1,925 | $43,392 | $1,668.92 |
| $75,000 | $14,721 | $1,313 | $2,625 | $56,342 | $2,167.01 |
| $110,000 | $26,178 | $1,925 | $3,850 | $78,048 | $3,001.82 |
Add 12% of everything above $24,128 if you have a student loan (SL code), or swap KiwiSaver for your own rate — use the calculator above for an exact figure with your settings.
Same salary, different pay frequency
A $75,000 salary (M code, KiwiSaver 3.5%) paid weekly, fortnightly, four-weekly, monthly, or as one annual sum — the annual PAYE total is identical either way, because "annualise, tax, divide back" always lands on the same yearly figure.
| Pay frequency | Gross per pay | PAYE (tax + ACC) per pay | Net per pay | Net annualised |
|---|---|---|---|---|
| Week | $1,442.31 | $308.33 | $1,083.50 | $56,342 |
| Fortnight | $2,884.62 | $616.65 | $2,167.01 | $56,342 |
| 4 Weeks | $5,769.23 | $1,233.31 | $4,334.00 | $56,342 |
| Month | $6,250.00 | $1,336.09 | $4,695.16 | $56,342 |
| Year | $75,000.00 | $16,033.00 | $56,342.00 | $56,342 |
ACC earner's levy mechanics
The ACC earner's levy is 1.75% for 2026-27 (up from 1.67% in 2025-26) on income up to $156,641 per year ($152,790 in 2025-26). Above the cap, no further ACC levy applies for the rest of the income year. Practical effect: an employee earning $200,000 pays the maximum ACC of $2,741.22 in 2026-27 (1.75% × $156,641), and from the pay period when YTD income crosses $156,641, the ACC line disappears from the payslip and net pay rises by 1.75%.
ACC levy is funded only by employees (the employer-side ACC is a separate levy on the business, not on the worker's pay). The levy funds non-work injury cover under the ACC scheme — it's separate from income tax and goes to ACC, not IRD. The levy rate is reviewed by the ACC board annually and announced for the following 1 April start.
IETC ($520 Independent Earner Tax Credit)
IETC is a $520-per-year tax credit for individuals earning between $24,000 and $70,000 annually with no Working for Families, main benefit, or NZ Super. It's claimed automatically when you use the ME or ME SL tax code. The credit is paid through PAYE withholding — your employer reduces tax withheld by about $10 per week.
IETC phases out between $66,000 and $70,000 at $0.13 per dollar of additional income. Above $70,000, IETC is zero. Income from interest, dividends, capital gains, or a second job does NOT disqualify you — only Working for Families, main benefits, or NZ Super do. If you change jobs and forget to use ME on the new IR330 declaration, you miss $520 of credit until the year-end IRD auto-assessment picks it up.
Bonus and extra-pay rules
Bonuses, commissions, back-pay, and other lump-sum payments are taxed using the "extra pay" rules — separate from regular PAYE. The mechanic: your employer takes your most recent 4 weeks of regular pay, extrapolates to an annual income, finds which bracket the extra pay would push you into, and withholds at that bracket's flat rate on the entire bonus.
Extra-pay rates: 10.5% (annualised income ≤ $15,600), 17.5% ($15,601-$53,500), 30% ($53,501-$78,100), 33% ($78,101-$180,000), 39% ($180,001+). A $5,000 bonus to an employee with $80,000 base salary withholds at 33% = $1,650, regardless of how the rest of the year played out. Year-end IR3 reconciles whether your actual marginal rate matches.
Why our result may differ from your payslip
This calculator should match your payslip closely, but a handful of real-world factors change the number your employer actually deducts:
- Secondary tax code — if this isn't your only job, your employer should be using a secondary code (SB/S/SH/ST/SA, not M/ME), which withholds a flat rate rather than the progressive brackets. Check with the Secondary Tax Calculator.
- IETC via ME / ME SL — if you're eligible for the Independent Earner Tax Credit but your employer has you down as M instead of ME, you're being over-withheld by the IETC amount every pay.
- Extra pay / bonus taxed separately — a bonus or commission in the same pay run as your salary is withheld at the flat "extra pay" rate (see above), not blended into the progressive calculation the way this tool treats a steady salary. Use the Bonus Tax Calculator for a one-off payment.
- Payroll giving — if you donate to an approved charity through payroll giving, you get an immediate tax credit (33.33% of the donation, the same rate as the year-end donation tax credit) applied in the same pay run, which reduces the PAYE shown on your payslip below what a plain salary calculation would show. See the Donation Tax Credit Calculator.
- ESCT on the employer's KiwiSaver contribution — this doesn't appear on your own pay line at all (it's deducted before the employer contribution reaches your KiwiSaver account), but it's easy to mistake for a missing employer contribution if you're reconciling total remuneration. See the ESCT Calculator.
- Wrong tax code on file — the single most common cause of a payslip/calculator mismatch. Confirm your code with the Tax Code Checker.
PAYE vs IR3 — who still needs to file
If PAYE is your only income and your tax code is correct, you generally don't need to file anything — IRD automatically assesses most salary and wage earners after each 31 March and issues a refund or bill without you logging into myIR. PAYE is designed to be a complete, self-reconciling system for straightforward salary and wage income.
You still need to file an IR3 if you have income PAYE doesn't cover — self-employment or contracting, rental income, overseas income, bright-line property sales, or if you receive Working for Families and need a square-up. See our full PAYE vs IR3 decision guide for the complete list, or the IR3 2025-26 hub for filing deadlines and step-by-step guidance.
2025-26 vs 2026-27: what changed in your PAYE
Income tax brackets are frozen — the five PAYE thresholds and rates are identical in 2025-26 and 2026-27, so the income-tax component of your PAYE hasn't moved between the two years for the same salary.
The ACC earner's levy is the one thing that did move — from 1.67% (capped at $152,790) in 2025-26 to 1.75% (capped at $156,641) in 2026-27, effective 1 April 2026. On its own this adds up to $2,741.22 a year in extra levy for anyone earning at or above the cap. KiwiSaver also moved independently of PAYE: the default employee rate for auto-enrolled members rose from 3% to 3.5% on the same date (Budget 2025) — see our Budget 2026 PAYE freeze explainer for the full picture, including why frozen brackets still mean rising effective tax rates (fiscal drag).
Frequently asked questions
What does PAYE stand for?
PAYE stands for Pay As You Earn. It's the income tax (and student loan, if applicable) your employer withholds from each pay and forwards to Inland Revenue (IRD) on your behalf.
Is PAYE the same as income tax?
PAYE is the mechanism by which income tax is collected from salary and wage earners. It includes income tax and the ACC earner's levy, and may also include student loan repayments if your tax code ends in 'SL'. KiwiSaver is deducted alongside PAYE but is separate.
Why is my PAYE different each pay period?
If your gross pay varies (overtime, bonuses, irregular hours), the PAYE withheld will vary too. PAYE is calculated by annualising your current pay period's gross, applying the progressive brackets, then dividing back. So a higher pay period pushes more income into a higher bracket for that period.
How is PAYE calculated on a bonus?
Bonuses use 'extra pay' rules with their own withholding rates based on your annualised income. We have a dedicated bonus tax calculator that handles this. See IRD extra pay guidance.
What if I have two jobs?
Your second job uses a secondary tax code (SB, S, SH, ST, or SA — plus 'SL' if you have a student loan). Pick the secondary code based on your TOTAL income from both jobs. The flat rate matches the marginal bracket your combined income falls into. See IRD tax codes.
How do I check my employer is deducting the right amount?
Enter your gross pay per period and your tax code into this calculator. The PAYE figure should match your payslip within a dollar or two. If it's more than a few dollars off, raise it with your payroll team — they may have your code wrong.
What happens if I'm on the wrong tax code?
You'll either over- or under-pay tax during the year. IRD performs an automatic income tax assessment after 31 March each year. Overpayment → refund; underpayment → bill. Using the right code from day one avoids surprises.
Does PAYE include KiwiSaver?
No. KiwiSaver is a separate deduction your employer takes alongside PAYE. This calculator can include it as an optional add-on so you see your true take-home.
Does PAYE include ACC?
Yes — the ACC earner's levy (1.75% in 2026-27, capped at $156,641; 1.67% in 2025-26, capped at $152,790) is collected through PAYE alongside income tax. See ACC levy rates.
When is PAYE paid to IRD?
Your employer pays PAYE to IRD by the 20th of the month following the pay period (or twice monthly for larger employers). You don't need to do anything — it's automatic.
What is the ACC earner's levy cap and what happens when I hit it?
For 2026-27 the ACC earner's levy is 1.75% on income up to $156,641 per year (capped at $2,741.22 annually) — up from 1.67% on income up to $152,790 (capped at $2,551.59) in 2025-26. Once your year-to-date earnings cross the cap, ACC stops being deducted and your net pay increases by the levy rate for the rest of the income year. The cap resets on 1 April each year. The levy goes to ACC for non-work injury cover — separate from income tax.
Who qualifies for the $520 IETC and how does it work?
The Independent Earner Tax Credit (IETC) is $520/year for individuals earning between $24,000 and $70,000 annually with no Working for Families, main benefit, or NZ Super. It's claimed automatically via the ME or ME SL tax code. The credit is delivered through PAYE — your employer withholds about $10/week less. You get the full credit up to $66,000; it then abates at 13 cents per dollar and cuts out entirely at $70,000. Investment income and second-job income don't disqualify you — only WfF, main benefits, and NZ Super do.
How is a bonus taxed differently from regular pay?
Bonuses use 'extra pay' rules: your employer annualises your last 4 weeks of regular pay, identifies which marginal bracket the bonus pushes you into, and withholds at that flat rate on the entire bonus. Rates are 10.5%/17.5%/30%/33%/39% by annualised income. A $5,000 bonus to a $80k earner withholds at 33% = $1,650, regardless of how the rest of the year plays out. Year-end IR3 reconciles. The 'bonus tax shock' you might feel comes from this flat-rate withholding, which is sometimes higher than the smoothed effective rate.
What if I'm on a secondary code (S/SH/ST/SA) but my combined income falls into a lower bracket?
Year-end IR3 reconciles. The flat-rate secondary withholding usually over-withholds when combined income would have produced a lower effective rate via primary-bracket coverage. You get the over-withheld amount back as a refund. To avoid over-withholding during the year, ask IRD for a special tax code — they'll issue a customised rate that more accurately reflects your combined income's marginal rate.
How is PAYE calculated, step by step?
Your employer annualises your current pay period's gross (multiplies it by 52 for weekly, 26 for fortnightly, 12 for monthly, and so on), runs that annual figure through the progressive income tax brackets, adds the ACC earner's levy, subtracts any IETC credit (ME codes), adds 12% student loan above the threshold (SL codes), then divides the total back down to your pay period. See the deduction tables and equivalence table below for the same math worked in full.
Why did my PAYE go up in April 2026?
Two things changed on 1 April 2026: the ACC earner's levy rose from 1.67% to 1.75% (the cap also rose, from $152,790 to $156,641), and the KiwiSaver default employee contribution rate for auto-enrolled members increased from 3% to 3.5% (Budget 2025). Neither of those is income tax — the PAYE income tax brackets themselves didn't change. If your net pay dropped even though your salary didn't, one or both of these is almost always the cause.
What tax code should I use?
Most people with one job and no student loan use M. Add ME instead of M if you earn between $24,000 and $70,000 and don't get Working for Families or a main benefit (claims the IETC). Add 'SL' to either if you have a student loan. If it's not your only job, use a secondary code instead — see the tax code checker below for a guided walkthrough.
Does IRD publish official PAYE deduction tables, and does this match them?
Yes — IRD publishes weekly and fortnightly PAYE tables (and an online PAYE calculator) that payroll software is built against. This calculator uses the same underlying formula: annualise, apply the progressive brackets plus ACC levy, then divide back. Figures should match your payslip to the cent; a persistent few-dollar gap usually means a different tax code or a KiwiSaver/student-loan setting than what your employer has on file.
2026 IR3 filing — due 7 July: IR3 2025-26 hub, how to file IR3, common IR3 mistakes, IR3 vs auto-assessment
PAYE on popular salaries
Related Calculators
Take-Home Pay Calculator
Net pay after PAYE, ACC, KiwiSaver, and student loan. Annual, monthly, weekly, hourly.
Income Tax Calculator
NZ income tax by bracket with effective and marginal rates.
Tax Code Checker
Find your correct NZ PAYE tax code — M, ME, M SL, S, SH, ST, SA, and more.
ACC Levy Calculator
Calculate your ACC earner's levy at the current rate up to the annual cap.
Student Loan Calculator
12% repayments on income above the annual threshold.
KiwiSaver Calculator
Employee and employer KiwiSaver contributions at 3%–10%.
Bonus Tax Calculator
Tax on a bonus: PAYE, ACC, KiwiSaver, and student loan deductions.
Minimum Wage Calculator
1 April 2026 rates converted to weekly/fortnightly/annual take-home — plus Living Wage comparison.
Secondary Tax Calculator
Two-job PAYE: per-job withholding, recommended secondary code, and year-end wash-up.
ESCT Calculator
Tax on your employer's KiwiSaver contribution — separate from the PAYE deducted from your salary.
PAYE vs IR3
When automatic IRD assessment is enough vs when you must file an IR3 return.
Sources
Rates sourced from Inland Revenue (IRD). PAYE brackets are unchanged across 2025-26 and 2026-27; the ACC earner's levy differs by year (1.67% in 2025-26, 1.75% in 2026-27) — select your year above for the exact figure.
Last updated July 2026. Reflects 2025-26 and 2026-27 rates. Rates sourced from IRD.