NZ Tax Changes for 2025-26
What changed for the tax year starting 1 April 2025? Here's a summary of the key updates that affect your pay, deductions, and obligations.
Quick Summary
2025-26 is the first full year with the new income tax thresholds from Budget 2024 ($15,600/$53,500/$78,100). The ACC earner's levy rate increased from 1.60% to 1.67% and the cap rose to $152,790. Student loan threshold, KiwiSaver rates, and GST are unchanged.
Income Tax Brackets — New Full-Year Thresholds
Budget 2024 raised the first three income tax thresholds effective 31 July 2024. Because the change took effect part-way through the 2024-25 year, that year used blended thresholds. The 2025-26 year is the first full year at the new levels. Tax rates (10.5%, 17.5%, 30%, 33%, 39%) are unchanged.
| Rate | 2024-25 (blended) | 2025-26 (full year) |
|---|---|---|
| 10.5% | $0 – $14,530 | $0 – $15,600 |
| 17.5% | $14,531 – $49,883 | $15,601 – $53,500 |
| 30% | $49,884 – $72,743 | $53,501 – $78,100 |
| 33% | $72,744 – $180,000 | $78,101 – $180,000 |
| 39% | $180,001+ | $180,001+ |
The higher thresholds mean more income is taxed at lower rates. For example, income between $14,531 and $15,600 drops from 17.5% to 10.5%, and income between $49,884 and $53,500 drops from 30% to 17.5%.
Compare your take-home pay across both years →ACC Earner's Levy — Rate and Cap Increased
| 2024-25 | 2025-26 | |
|---|---|---|
| Rate | 1.60% | 1.67% |
| Earnings cap | $139,384 | $152,790 |
| Max levy | $2,230.14 | $2,551.59 |
Both the rate and cap increased. The rate rose from 1.60% to 1.67%, and the earnings cap jumped from $139,384 to $152,790. Most earners will see a modest increase in their ACC deduction.
KiwiSaver — No Change
Employee contribution rates (3%, 4%, 6%, 8%, 10%) and employer minimum contribution (3%) are unchanged. The $1,042.86 annual government contribution cap also remains the same.
Student Loans — No Change
The repayment threshold remains at $24,128/year ($464/week) with a 12% repayment rate on income above that threshold. This threshold was increased from $22,828 in 2023-24 and applies to both 2024-25 and 2025-26. Overseas-based borrowers still face a different repayment obligation.
GST — No Change
GST remains at 15%. The registration threshold stays at $60,000 annual turnover.
What This Means for You
- Most employees: Slightly more take-home pay thanks to the full-year effect of higher tax thresholds — up to ~$100/year more compared to the blended 2024-25 thresholds.
- Mid-range earners ($50k–$80k): Benefit most from the threshold changes, with more income taxed at 17.5% instead of 30%.
- All earners: Slightly higher ACC levy due to the rate increase from 1.60% to 1.67%, partially offsetting the tax threshold benefit.
- High earners ($150k+): Higher ACC cap means the levy applies to more of your income.
- KiwiSaver members: No change to contribution calculations.
Frequently asked questions
Did income tax rates change for 2025-26?
The five tax rates (10.5%, 17.5%, 30%, 33%, 39%) stay the same, but the bracket thresholds changed. Budget 2024 raised the thresholds from $14,000/$48,000/$70,000 to $15,600/$53,500/$78,100 effective 31 July 2024. The 2024-25 year used blended thresholds; 2025-26 is the first full year at the new levels.
Did the ACC levy change?
Yes. The ACC earner's levy rate increased from 1.60% to 1.67%, and the maximum earnings cap rose from $139,384 to $152,790. The maximum levy increased from $2,230.14 to $2,551.59.
Did the student loan threshold change?
The repayment threshold is $24,128/year ($464/week) for both 2024-25 and 2025-26. This was increased from $22,828 in 2023-24.
Related Tools
Sources: Inland Revenue, ACC. Last updated March 2026.