How your take-home pay is worked out (2025-26)
In New Zealand your take-home pay is your salary minus PAYE income tax and the ACC earners' levy. If you're in KiwiSaver or repaying a student loan, those come out too. There is no tax-free threshold — the first dollar is taxed. This calculator uses the official IRD rates for the 2025-26 tax year (1 April 2025 – 31 March 2026).
Income tax (PAYE) rates
| Taxable income | Rate |
|---|---|
| $0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| $180,001 + | 39% |
ACC earners' levy
Everyone pays a flat 1.67% ACC earners' levy on income up to $152,790 (a maximum of $2,551.59). It funds cover for injuries and is collected alongside PAYE.
KiwiSaver
KiwiSaver is New Zealand's voluntary retirement savings scheme. You can contribute 3%, 4%, 6%, 8% or 10% of your pay; the default is 3% (rising to 3.5% from 1 April 2026). Your employer also contributes, but that's on top and doesn't reduce your take-home.
Student loan
If you have a student loan, you repay 12% of every dollar you earn over $24,128 a year.
Example: $70,000 salary (KiwiSaver 3%, no student loan)
On $70,000, PAYE income tax is $13,220.50, the ACC levy is $1,169, and KiwiSaver at 3% is $2,100 — leaving a take-home of $53,510 a year, about $4,459 a month or $1,029 a week.
What this calculator does not include
- Per-pay-period rounding — IRD deducts PAYE each pay period, so weekly figures can differ by a few dollars from the annual total.
- Independent Earner Tax Credit (IETC), Working for Families, and secondary-income tax codes.
- Employer KiwiSaver contributions and ESCT (these don't affect your take-home).
Frequently asked questions
Does NZ have a tax-free threshold?
No. Unlike Australia or the UK, every dollar is taxed — the lowest rate of 10.5% starts from the first dollar.
Is ACC part of my income tax?
No, it's a separate levy (1.67%) collected with PAYE. We show it as its own line so the numbers are clear.
Is KiwiSaver compulsory?
No, it's voluntary, but many employees are auto-enrolled and can opt out. Set your rate above, or turn it off.
When is the tax year?
New Zealand's tax year runs 1 April to 31 March. 2025-26 ends on 31 March 2026.
More New Zealand calculators
This calculator provides estimates for the 2025-26 tax year based on published IRD rates and is for general information only — it is not financial or tax advice. It treats salary as taxable income and excludes per-pay-period rounding, tax credits and secondary tax codes. For your exact figure use the IRD PAYE calculator. Source: IRD (tax rates, ACC levy, KiwiSaver, student loans).