NZ ACC Earner's Levy — 10-Year History
The ACC earner levy is invisible to most New Zealanders — it's bundled into PAYE and rarely discussed publicly. But it's been one of the fastest-rising deductions on a NZ payslip over the past decade. Here's the year-by-year rate, cap, and maximum annual levy from 2016-17 through 2026-27.
10-year rate, cap, and maximum levy
| Tax year | Rate | Cap | Maximum annual levy |
|---|---|---|---|
| 2016-17 | 1.39% | $122,063 | $1,696.68 |
| 2017-18 | 1.39% | $124,053 | $1,724.34 |
| 2018-19 | 1.39% | $126,286 | $1,755.37 |
| 2019-20 | 1.39% | $128,470 | $1,785.73 |
| 2020-21 | 1.39% | $130,911 | $1,819.66 |
| 2021-22 | 1.39% | $130,911 | $1,819.66 |
| 2022-23 | 1.46% | $136,544 | $1,993.54 |
| 2023-24 | 1.53% | $139,384 | $2,132.58 |
| 2024-25 | 1.60% | $142,283 | $2,276.53 |
| 2025-26 | 1.67% | $152,790 | $2,551.59 |
| 2026-27 | 1.75% | $156,641 | $2,741.22 |
Cumulative cost — $90,000 earner, 11 years
| Year | This year's levy | Cumulative |
|---|---|---|
| 2016-17 | $1,251.00 | $1,251 |
| 2017-18 | $1,251.00 | $2,502 |
| 2018-19 | $1,251.00 | $3,753 |
| 2019-20 | $1,251.00 | $5,004 |
| 2020-21 | $1,251.00 | $6,255 |
| 2021-22 | $1,251.00 | $7,506 |
| 2022-23 | $1,314.00 | $8,820 |
| 2023-24 | $1,377.00 | $10,197 |
| 2024-25 | $1,440.00 | $11,637 |
| 2025-26 | $1,503.00 | $13,140 |
| 2026-27 | $1,575.00 | $14,715 |
A continuously employed $90,000 earner will have paid roughly $14,715 in ACC earner levy over these 11 years.
Why the levy is rising
Two structural drivers behind the recent acceleration:
- Funding ratio rebuild. ACC's Earners' Account ran below the legislated 100% target after the 2017–2021 holding pattern. Levy increases over 2022-23 to 2026-27 are scheduled to restore the buffer.
- Claim costs. Per-claim cost has grown faster than wage inflation across the period, driven by mental-injury claim inclusion (2018+), longer rehabilitation pathways, and higher-quality clinical input.
ACC's Levy Consultation runs every two years; the most recent confirmed the 2025-26 / 2026-27 schedule. Rates are subject to revision at the next consultation cycle (2027-28 / 2028-29).
Re-use this data
We compiled this rate-and-cap timeline from primary ACC notices because no single published source had the 11-year view assembled. Re-use is welcome under CC-BY — please link back to this page so corrections can flow back if rates are restated.
Run your own numbers
Frequently asked questions
What is the ACC earner's levy?
A flat levy on every dollar of salary, wage, or self-employment income up to an annual cap. The levy funds the Earners' Account portion of New Zealand's no-fault accident compensation scheme. Employees have it deducted via PAYE; sole traders pay it as part of their year-end self-employment reconciliation.
How much has the levy risen in 10 years?
The headline rate moved from 1.39% in 2016-17 to 1.75% for 2026-27 — a 25.9% relative increase. Combined with cap growth from $122,063 to $156,641 (+28.3%), the maximum annual levy has roughly doubled from $$1,696.68 to $$2,741.22.
Why did the rate jump after 2021-22?
Levy rates are set by ACC's Levy Consultation process every two years, balancing the Earners' Account funding ratio against expected claim costs. The 2022-23 rate increase reflected post-COVID claim normalisation; 2025-26 and 2026-27 increases reflect rebuilding the funding ratio toward the legislated 100% target.
Is the cap indexed?
Yes — annually, by the change in the average ordinary-time weekly earnings index, per Schedule 4 of the Accident Compensation Act 2001. This is one of the few NZ tax-adjacent thresholds with formal indexation. Income tax brackets, by contrast, are not indexed.
Does the levy apply to passive income?
No. The earner levy applies to earned income — salary, wages, schedular payments, and self-employment income. It does not apply to interest, dividends, PIE income, rental income, or capital gains. This is why the levy and personal income tax behave differently for high-income passive earners.
Can I pay less ACC if I'm a sole trader?
Sole traders pay both the earner levy and the work levy (which depends on your CU classification). You can lower the work levy by selecting a more accurate work classification, taking the CoverPlus Extra option, or restructuring how you draw income (e.g., dividends from an interposed company are not subject to ACC). Any restructuring needs accounting advice — anti-avoidance rules apply.
Where does the data come from?
ACC publishes rates and caps each year on their levy rates page: ACC — Levy rates. We cross-checked against the official Earners' Account Levy Setting Order in Council each year.