Salary Raise Calculator

Salary raises are taxed at your marginal tax rate — the rate on your highest dollar of income. NZ has progressive tax brackets from 10.5% to 39%, plus the 1.67% ACC earner's levy. If you earn $60,000 (30% bracket), a $5,000 raise will have 31.67% taken for PAYE + ACC before KiwiSaver and any student loan.

Your marginal rate is the tax on just the raise portion — the bracket your last dollar falls into. Your effective rate is your total tax divided by total income. A raise pushes your effective rate slightly higher, but the raise itself is taxed at the marginal rate. This calculator shows both so you can see exactly how much of the raise you keep.

KiwiSaver employee contributions (3%, 4%, 6%, 8%, or 10%) are deducted from your gross pay — including your raise. For example, at 3% KiwiSaver, $30 of every $1,000 raise goes to your KiwiSaver account. Your employer also contributes, but their contribution is on top of your salary and does not reduce your take-home pay.

Yes — if you have a student loan, 12% of every dollar earned above the repayment threshold ($24,128/year for 2025-26) is deducted. Since your full raise is above the threshold (assuming you earn more than $24,128), 12% of your gross raise goes to student loan repayments on top of PAYE and ACC. Combined, the bite can be substantial.

Always negotiate on gross salary — it's the basis for all future raises, KiwiSaver employer contributions (a percentage of your gross), and ACC entitlements. Your employer cannot easily control your net pay since deductions depend on your personal circumstances (KiwiSaver rate, student loan status). Use this calculator to understand what any gross offer actually means for your take-home pay.