Tax on a $1,000 Bonus in NZ (2026-27)

What this $1,000 bonus means at a $70,000 salary

A $1,000 bonus is small enough that it won't push you into a new tax bracket — PAYE is simply your current marginal rate (30%) applied to the lot, plus 1.75% ACC and 3% KiwiSaver. The effective deduction rate of 34.75% is roughly what you'd expect for any additional dollar at this income level.

Useful to know: NZ does not treat bonuses as a separate "extra-high" withholding category. The PAYE figure for this bonus is your normal marginal rate — the same rate IRD would apply to the next dollar of your regular salary. The reason bonuses feel taxed harder is that a lump-sum pushes more dollars through your highest bracket in one pay period.

2025-26 vs 2026-27 on this same bonus

The ACC earner's levy rises from 1.67% (2025-26) to 1.75% (2026-27), and the cap shifts from $152,790 to $156,641. Income tax brackets are unchanged. The net difference on this $1,000 bonus is $1 less in 2026-27.

With a student loan

If your tax code ends in SL (student loan), 12% of the portion of your bonus above the $24,128 threshold goes to IRD as a loan repayment. On a $70,000 base salary + $1,000 bonus, the entire bonus is above the threshold, so student loan adds $120 of repayment — net bonus becomes $533.

Student loan repayment is not tax — it is paying down debt you owe IRD, so it reduces your loan balance dollar-for-dollar. If you are close to clearing the loan, a large bonus can accidentally overpay and trigger a refund at year end.