BEST PAYE CALCULATOR NZ (2025-26)

NZ PAYE Income Tax Rates & Brackets (2025–2026)

New Zealand uses progressive tax brackets, meaning your income is taxed at different rates depending on the amount you earn. Below are the official PAYE tax rates for 2025–2026.

PAYE Income Tax Brackets 2025–2026

Tax Rate

Taxable Income Bracket (NZ$)

Tax Owed

10.5%

$0 – $15,600

10.5% of taxable income

17.5%

$15,601 – $53,500

$1,638 + 17.5% of the amount over $15,600

30%

$53,501 – $78,100

$8,271 + 30% of the amount over $53,501

33%

$78,101 – $180,000

$15,651 + 33% of the amount over $78,100

39%

$180,001+

$49,277 + 39% of the amount over $180,000

PAYE Tax Brackets 2024–2025 (for comparison)

Tax Rate

Taxable Income Bracket (NZ$)

Tax Owed

11%

$0 – $15,600

11% of taxable income

17.5%

$15,601 – $53,500

$1,638 + 17.5% of the amount over $15,600

30%

$53,501 – $78,100

$8,271 + 30% of the amount over $53,501

33%

$78,101 – $180,000

$15,651 + 33% of the amount over $78,100

39%

$180,001+

$49,277 + 39% of the amount over $180,000

Understanding PAYE in New Zealand

PAYE (Pay As You Earn) is New Zealand’s system where income tax and other deductions are taken directly from your salary before it reaches your bank account. The PAYE Calculator helps you quickly see your net take-home pay after applying the correct tax rules.

A: PAYE means “Pay As You Earn.” Employers deduct income tax before paying your salary. This deduction also includes:

  • Income tax
  • ACC levy (Accident Compensation)
  • Student loan repayments (if applicable)
  • KiwiSaver contributions

A: The calculator adjusts automatically based on your inputs. It covers:

  • Income amount & frequency (hourly, weekly, monthly, annual)
  • Tax code selection (e.g., M, M SL)
  • ACC levy
  • KiwiSaver contributions (3–10%)
  • Student loan repayments
  • Independent Earner Tax Credit (IETC)
  • Secondary income option
  • Progressive tax brackets (10.5%, 17.5%, 30%, 33%, 39%)
  • Full breakdown of gross pay, tax, and take-home pay

A: Suppose an employee earns $120,000 per year. Their PAYE tax is calculated as:

  • First $15,600 at 10.5% = $1,638
  • $15,601–$53,500 at 17.5% = $6,632.50
  • $53,501–$78,100 at 30% = $7,380
  • $78,101–$120,000 at 33% = $13,827
  • Total tax = $29,477.50 (about 24.57% of gross salary)

  • Know your take-home pay before payday
  • Verify your employer’s deductions
  • Plan budgets for bills, savings, and investments
  • Understand how KiwiSaver or Student Loan affect your pay

Frequently Asked Questions about PAYE Calculator NZ

Here are the most common questions people ask about New Zealand PAYE and our calculator. Click to expand each answer.

A: This calculator applies the Independent Earner Tax Credit (IETC) for qualifying incomes, while the IRD calculator does not. Also, our calculator separates PAYE and ACC for clarity, whereas IRD combines them.

A: Open the “secondary income” option, enter your gross secondary income (in addition to your primary income), and the calculator will apply the correct tax bracket automatically.

A: Your tax code is shown on your payslip. When using the calculator, make sure to select the correct code and tick relevant boxes (Student Loan, KiwiSaver, secondary income) for accurate results.

  • $23.50 per hour: Adult minimum wage
  • $18.80 per hour: Starting-out and training wage (80% of adult wage)
  • No minimum wage applies for employees under 16 years old