NZ Super (State Pension): Tax, Rates and When You Qualify (2025-26)
A complete guide to NZ Super for 2025-26 — current weekly rates, eligibility rules, how it's taxed, tax codes, overseas pension deductions, and worked examples showing your actual take-home amount.
Published 12 April 2026 · Reviewed by NZ Tax Tools Editorial Desk
New Zealand Superannuation (NZ Super) is the government pension available to most New Zealanders from age 65. While qualifying is relatively straightforward, how NZ Super is taxed — especially if you have other income — catches many people off guard. This guide covers the 2025-26 rates, eligibility, tax treatment, and worked examples showing what you actually take home.
What Is NZ Super?
NZ Super is a universal, non-means-tested pension paid fortnightly to eligible New Zealand residents aged 65 and over. Unlike KiwiSaver or workplace pensions, NZ Super is funded directly from general taxation — you don’t need to have made contributions during your working life.
The key word is non-means-tested: your other income, savings, and assets do not affect your entitlement. Whether you have $5 million in investments or nothing at all, you receive the same gross amount.
Eligibility Requirements
To qualify for NZ Super, you must:
- Be aged 65 or over
- Be a New Zealand citizen or permanent resident
- Ordinarily reside in New Zealand at the time of application
- Have lived in NZ for at least 10 years since age 20, with at least 5 of those years being since age 50
Time spent in countries with which NZ has a social security agreement (Australia, UK, Ireland, and others) may count toward the residency requirement, though the calculation can be complex and may reduce the amount you receive.
NZ Super Rates (From 1 April 2025)
NZ Super rates are adjusted annually on 1 April, linked to movements in the average wage. The following are the gross (before tax) weekly rates effective from 1 April 2025:
| Living Situation | Gross Weekly Rate | Gross Annual Equivalent |
|---|---|---|
| Single, living alone | $537.04 | $27,926.08 |
| Single, sharing accommodation | $494.94 | $25,736.88 |
| Couple (each person) | $413.88 | $21,521.76 |
| Couple (combined) | $827.76 | $43,043.52 |
The “single living alone” rate is the highest because it recognises the higher cost of running a household solo. If you share accommodation — even with flatmates who are not your partner — you receive the lower “sharing” rate.
How NZ Super Is Taxed
NZ Super is taxable income. It is subject to PAYE tax just like salary or wages. The amount of tax deducted depends on the tax code you use, which in turn depends on whether NZ Super is your only income or you also earn from other sources.
Tax Codes for NZ Super
| Situation | Tax Code | Effect |
|---|---|---|
| NZ Super is your only income | M (primary) | Tax calculated using standard progressive rates |
| NZ Super + other employment income (NZ Super is secondary) | S (secondary) | Flat 30% withheld from NZ Super |
| NZ Super is primary, other income is secondary | M on NZ Super | Standard rates on NZ Super; use S/SH/ST on other job |
Most retirees with no other income use the M tax code. If you continue working part-time, you’ll typically use M on whichever income source is larger and a secondary code on the other.
Getting your tax code wrong can lead to a large tax bill or refund at the end of the year. Use the tax code checker to find the right code for your situation.
Worked Example 1: NZ Super Only
Sarah is 67, single, and lives alone. Her only income is NZ Super.
- Gross NZ Super: $537.04/week = $27,926.08/year
- Tax code: M (primary income)
Tax calculation using 2025-26 brackets:
| Bracket | Rate | Taxable Amount | Tax |
|---|---|---|---|
| $0 – $15,600 | 10.5% | $15,600 | $1,638.00 |
| $15,601 – $27,926 | 17.5% | $12,326.08 | $2,157.06 |
| Total | $27,926.08 | $3,795.06 |
Sarah also qualifies for the Independent Earner Tax Credit (IETC) of up to $520/year, since her income is between $24,000 and $44,000. This reduces her effective tax.
- Tax after IETC: $3,795.06 - $520.00 = $3,275.06
- Net NZ Super: $24,651.02/year ($474.06/week)
- Effective tax rate: 11.7%
Use the income tax calculator to model your own scenario.
Worked Example 2: NZ Super + Part-Time Work
David is 66, married, and works part-time earning $30,000/year. He also receives NZ Super (couple rate).
- Gross NZ Super: $413.88/week = $21,521.76/year
- Part-time employment income: $30,000/year
- Total gross income: $51,521.76/year
David uses M tax code on his employment income (the larger source) and S tax code on NZ Super.
Combined tax calculation on $51,521.76:
| Bracket | Rate | Taxable Amount | Tax |
|---|---|---|---|
| $0 – $15,600 | 10.5% | $15,600 | $1,638.00 |
| $15,601 – $48,000 | 17.5% | $32,400 | $5,670.00 |
| $48,001 – $51,522 | 30% | $3,521.76 | $1,056.53 |
| Total | $51,521.76 | $8,364.53 |
- ACC earner’s levy on employment income: $30,000 x 1.67% = $501.00
- Total deductions: $8,865.53
- Net income: $42,656.23/year
- Effective tax rate: 16.2%
Note that David does not qualify for the IETC because his income exceeds $44,000.
Check your combined tax position using the take-home pay calculator.
Net NZ Super at Different Tax Codes
This table shows approximate net weekly amounts for a single person living alone ($537.04/week gross) under different scenarios:
| Tax Code | Scenario | Approx. Weekly Tax | Approx. Net Weekly |
|---|---|---|---|
| M | NZ Super only income | $63.05 | $473.99 |
| S | NZ Super as secondary income | $161.11 | $375.93 |
| SH | Secondary + student loan | $173.15 | $363.89 |
The difference between M and S codes is significant — roughly $98/week less if your NZ Super is taxed as secondary income. This is why getting the right tax code matters.
Overseas Pension Deduction (Section 70)
If you receive a pension from an overseas government (e.g., UK State Pension, Australian Age Pension), your NZ Super is reduced dollar-for-dollar by the gross amount of the overseas pension. This is known as the direct deduction policy under section 70 of the New Zealand Superannuation and Retirement Income Act 2001.
For example, if you receive a UK State Pension of $200/week (converted to NZD), your NZ Super is reduced by $200/week. If your overseas pension exceeds NZ Super, you receive zero NZ Super — but you keep the full overseas pension.
This applies to government-funded pensions only. Private overseas pensions (employer pensions, personal retirement savings) do not reduce NZ Super — though they are still taxable income in NZ.
No Voluntary Deferral Option
Unlike the UK (where you can defer the State Pension for a higher amount later) or Australia (where you can choose to delay the Age Pension), NZ Super cannot be voluntarily deferred. There is no mechanism to delay claiming in exchange for a higher rate.
Once you turn 65 and meet the residency requirements, you can apply — but there is no financial advantage to waiting. If you delay your application, you simply miss out on payments; you cannot backdate more than 12 weeks.
Key Takeaways
- NZ Super is available from age 65 with 10 years of NZ residency (5 after age 50)
- The 2025-26 rate for a single person living alone is $537.04/week gross
- NZ Super is taxable income — use the M tax code if it’s your only income
- A retiree on NZ Super alone pays roughly 11.7% effective tax after the IETC
- If you also work, your combined income determines your marginal tax rate
- Overseas government pensions reduce NZ Super dollar-for-dollar under section 70
- There is no deferral option — apply at 65 or lose payments
- Use the income tax calculator or PAYE calculator to model your retirement tax position