How much tax do I pay on my salary in New Zealand?

New Zealand uses a progressive PAYE tax system. For the 2025-26 tax year, the rates are: 10.5% on income up to $15,600; 17.5% on $15,601 to $53,500; 30% on $53,501 to $78,100; 33% on $78,101 to $180,000; and 39% on income over $180,000. You also pay an ACC levy of 1.60% and a KiwiSaver contribution of at least 3.5%.

What is ACC and how much is deducted from my pay?

ACC (Accident Compensation Corporation) is a New Zealand government scheme that covers the cost of injuries. The earners levy for 2025-26 is 1.60% of your income, capped at $142,283 of annual earnings.

What is the minimum KiwiSaver contribution in New Zealand?

The minimum employee KiwiSaver contribution is 3.5% of gross pay from April 2025. You can also choose 4%, 6%, 8%, or 10%. Your employer must contribute at least 3% on top of that.

When do I have to repay my student loan in NZ?

Student loan repayments kick in automatically once your income exceeds $24,128 per year. You repay 12 cents for every dollar above that threshold, deducted through PAYE.

What is the NZ minimum wage in 2025?

The New Zealand adult minimum wage is $23.15 per hour from April 2025.

What is my tax code in New Zealand?

Most NZ employees use tax code M for their main job. If you have a student loan, you use M SL. Secondary jobs use tax codes SB, S, SH, or ST depending on your total income. Your employer or IRD can confirm the right code for your situation.

What is the difference between gross pay and net pay in NZ?

Gross pay is your salary or wages before any deductions. Net pay (take-home pay) is what you actually receive after PAYE income tax, ACC levy, KiwiSaver contributions, and any student loan repayments are taken out.

What is an effective tax rate?

Your effective tax rate is the total percentage of your income paid in PAYE and ACC combined, as a single figure. It is always lower than your marginal (top bracket) rate because lower portions of your income are taxed at lower rates.

How much is $50,000 take-home pay in New Zealand?

On a $50,000 annual salary in New Zealand (2025-26 tax year), with standard tax code M and 3.5% KiwiSaver, you take home approximately $39,792 per year, or around $765 per week.

How much is $70,000 take-home pay in New Zealand?

On a $70,000 annual salary in New Zealand (2025-26 tax year), with standard tax code M and 3.5% KiwiSaver, you take home approximately $53,210 per year, or around $1,023 per week.

How much is $100,000 take-home pay in New Zealand?

On a $100,000 annual salary in New Zealand (2025-26 tax year), with standard tax code M and 3.5% KiwiSaver, you take home approximately $72,023 per year, or around $1,385 per week.

What are the NZ tax codes and what do they mean?

The most common NZ tax codes are: M (main job, no student loan), M SL (main job with student loan), SB (secondary job earning under $15,600/yr), S (secondary job earning $15,601-$53,500/yr), SH (secondary job earning $53,501-$78,100/yr), ST (secondary job earning $78,101-$180,000/yr), CAE (casual agricultural workers), and EDW (election day workers). Most employees on their main job use code M.

How do I calculate my annual salary from an hourly rate in NZ?

Multiply your hourly rate by your hours per week, then by 52. For example, $30/hr at 40 hours per week equals $30 x 40 x 52 = $62,400 per year. The Count. PAYE calculator does this automatically when you select the hourly pay period.

How is holiday pay calculated in New Zealand?

In New Zealand, casual and seasonal workers are often paid holiday pay as they go at a rate of 8% of gross earnings, added on top of their regular pay before tax. This is because they don't accrue annual leave. The Count. calculator includes an option to add casual or holiday pay loading to your gross income before calculating PAYE.

Do contractors pay PAYE tax in New Zealand?

Most self-employed contractors in New Zealand do not have PAYE deducted from their pay. Instead they pay provisional tax directly to IRD throughout the year. However, some contractors are subject to schedular payments (withholding tax). If you are an employee, PAYE is always deducted automatically by your employer.

What is the NZ tax rate for working holiday visa holders?

Working holiday visa holders in New Zealand are treated the same as NZ residents for PAYE purposes if they are in NZ for more than 183 days. They pay the standard PAYE rates and should use tax code M for their main job. Short-term visitors may be treated as non-residents and taxed at a flat 15% rate on the first $14,000.

How much does my employer contribute to KiwiSaver?

Employers must contribute a minimum of 3% of your gross salary to your KiwiSaver fund. This is paid on top of your salary and does not reduce your take-home pay. Employer contributions are subject to Employer Superannuation Contribution Tax (ESCT) which is deducted before the contribution reaches your fund.

What is the PAYE threshold for 2025-26 in New Zealand?

For 2025-26, PAYE tax applies from the first dollar of income. The 10.5% rate applies on income up to $15,600. Above that, progressively higher rates apply up to 39% on income over $180,000. There is no tax-free threshold in New Zealand.

How do I read my NZ payslip?

A New Zealand payslip shows your gross pay (total before deductions), then lists each deduction: PAYE income tax, ACC earners levy, KiwiSaver employee contribution, and student loan repayments if applicable. Your net pay (take-home pay) is what remains after all deductions. Some payslips also show your employer's KiwiSaver contribution separately.

NZ PAYE Calculator 2025-26 | Free Salary & Take-Home Pay Calculator

Count. NZ PAYE Calculator 2025–26 tax year

Your income

Hour

Week

Fortnight

Month

Year

Deductions

KiwiSaver Employee contribution

Student Loan 12% above $24,128

Casual / Holiday Pay Added to gross before tax

Hours per week

Below minimum wage. NZ minimum is $23.15/hr

Tax code M

ACC levy 1.60% · KiwiSaver min 3.5% · Tax brackets April 2025

Take-home pay

—

Per week

—

Per fortnight

—

Per year

—

Effective tax rate

—

Marginal rate

—

Take-home / gross

—

Net per hour

	Hour	Week	Fortnight	Month	Year

—

take home

NZ Income Tax Brackets 2025-26

Annual income	Tax rate	Tax on this portion
$0 to $15,600	10.5%	Up to $1,638
$15,601 to $53,500	17.5%	Up to $6,633
$53,501 to $78,100	30%	Up to $7,380
$78,101 to $180,000	33%	Up to $33,627
Over $180,000	39%	On each dollar above

Source: Inland Revenue (IRD). Rates apply from 1 April 2025.

Deduction Rates 2025-26

PAYE income tax10.5% to 39%
ACC earners levy1.60%
KiwiSaver (minimum)3.5%
KiwiSaver (optional)4%, 6%, 8%, 10%
Student loan repayment12% above $24,128
Minimum wage (adult)$23.15/hr

Common salary take-home pay

$50k

$39,792

~$765/wk

$70k

$53,210

~$1,023/wk

$100k

$72,023

~$1,385/wk

$150k

$103,096

~$1,983/wk

Based on tax code M, 3.5% KiwiSaver, no student loan. Use the calculator above for your exact figures.

What is PAYE?

PAYE stands for Pay As You Earn. It is New Zealand's system for collecting income tax directly from wages and salaries before employees receive their pay. Your employer calculates and deducts PAYE each pay period and sends it to Inland Revenue on your behalf.

NZ uses a progressive tax system, meaning the more you earn, the higher the rate on each additional dollar. You only pay the higher rates on income above each threshold, not on your full salary.

What is ACC?

ACC (Accident Compensation Corporation) provides New Zealand residents with cover for personal injuries caused by accidents. The earners levy is deducted from your pay to fund this scheme.

For 2025-26, the earners levy is 1.60% of your income, up to a cap of $142,283 in annual earnings. Income above this cap is not subject to the ACC levy.

What is KiwiSaver?

KiwiSaver is New Zealand's workplace retirement savings scheme. Employees contribute a percentage of their gross pay, and employers must contribute at least 3% on top of that.

From April 2025, the minimum employee contribution rate increased to 3.5%. You can also choose 4%, 6%, 8%, or 10%. Contributions are deducted before you receive your pay and invested in your chosen KiwiSaver fund.

Student loan repayments

If you have a New Zealand student loan, repayments are automatically deducted through PAYE once your income exceeds $24,128 per year (about $464/week). The repayment rate is 12 cents per dollar earned above that threshold.

Your tax code changes to M SL (or equivalent) to signal to your employer that student loan deductions apply. Repayments go directly to IRD and reduce your loan balance.

NZ tax codes explained

MMain job, no student loan
M SLMain job, with student loan
SBSecondary job, income under $15,600
SSecondary job, $15,601–$53,500
SHSecondary job, $53,501–$78,100
STSecondary job, $78,101–$180,000
CAECasual agricultural employee

Most employees use code M for their main job. If you have a student loan, your employer will use M SL. Secondary jobs always use a separate code based on your total expected income for the year.

Holiday pay and casual loading

Casual and seasonal workers in New Zealand are often paid an 8% holiday pay loading on top of their hourly rate, instead of accruing annual leave. This extra 8% is added to gross earnings before PAYE is calculated.

For example, a casual worker earning $25/hr with 8% holiday pay loading has an effective rate of $27/hr gross for tax purposes. Count. includes a casual/holiday pay toggle so you can see your accurate take-home pay.

How to read your NZ payslip

Every NZ payslip must show your gross pay (before deductions) and list each deduction separately:

Gross payTotal before deductions
PAYE income taxDeducted by employer
ACC earners levy1.60% of gross
KiwiSaverYour contribution (3.5%+)
Student loanIf applicable (12%)
Net payYour take-home amount

Contractor vs employee tax in NZ

Employees have PAYE deducted automatically by their employer each pay period. They do not need to file a tax return in most cases — IRD squares it up at year end.

Self-employed contractors generally do not have PAYE deducted. Instead they pay provisional tax in instalments throughout the year, and file an IR3 tax return. Some contractors on schedular payments have withholding tax deducted at source.

If you're unsure whether you're an employee or contractor for tax purposes, IRD's employment status tool at ird.govt.nz can help.

Working holiday visa and PAYE

Working holiday visa holders working in New Zealand are generally subject to the same PAYE rates as NZ residents. If you are in NZ for more than 183 days in a 12-month period you are taxed as a resident.

Use tax code M for your main job. You may also be eligible to enrol in KiwiSaver and claim your contributions back when you leave permanently. Short stays under 183 days may be taxed at a flat 15% non-resident rate on the first $14,000.

Free NZ PAYE Calculator 2025–26