Bonus Tax Calculator NZ 2026
A bonus is taxed as "extra pay" at your top marginal rate, then ACC, KiwiSaver and student loan come off as well. Enter your salary and bonus to see exactly what lands in your bank account.
Your bonus, after deductions
Bonus in your account
$3,117
from $5,000 gross
Total deductions
$1,884
37.7% of the bonus
Extra pay PAYE rate
33.0%
your marginal tax rate on this bonus
Where every dollar of the bonus goes
- Net bonus (in your bank account)
- $3,116.50
- PAYE (income tax)
- $1,650.00
- ACC earner levy
- $83.50
- KiwiSaver (yours to keep, invested)
- $150.00
Tax on a $5,000 bonus by salary
Same bonus, different salaries — with a 3% KiwiSaver rate and no student loan. The higher your salary, the higher the marginal rate the bonus is taxed at.
| Salary | PAYE on bonus | Total deductions | Bonus you keep |
|---|---|---|---|
| $50,000 | $1,063 | $1,296 | $3,704 |
| $70,000 | $1,500 | $1,734 | $3,267 |
| $90,000 | $1,650 | $1,884 | $3,117 |
| $120,000 | $1,650 | $1,884 | $3,117 |
| $200,000 | $1,950 | $2,100 | $2,900 |
How bonus tax actually works in New Zealand
Inland Revenue calls a bonus, commission, back pay or annual incentive "extra pay". Your employer annualises your regular income for the last four weeks, adds the bonus, and taxes the bonus at the rate that band reaches — 10.5%, 17.5%, 30%, 33% or 39%. There is no averaging: the bonus is stacked on top of income that has already consumed the cheaper bands.
Then three more lines come off the same gross amount: the ACC earner levy at 1.67%, your KiwiSaver percentage, and student loan repayments at 12% if you are above the threshold. KiwiSaver is not tax — it is still your money — but it does reduce the cash you see, which is why so many bonuses feel smaller than expected. See the current NZ tax rates for the thresholds, or the pay rise calculator if the extra money is ongoing rather than one-off.
One thing worth knowing: your employer's compulsory 3% KiwiSaver contribution is paid on bonuses too, so a bonus quietly grows your retirement balance as well. Employer contributions are taxed with employer superannuation contribution tax (ESCT) before they land in your fund — the KiwiSaver calculator shows that effect over time.
Bonus tax questions, answered
How is a bonus taxed in New Zealand?
A bonus is treated as 'extra pay' and is taxed at your marginal PAYE rate — the rate that applies to the top slice of your annual income, not an average. Your employer works out your annualised income including the bonus, then applies the matching extra pay rate of 10.5%, 17.5%, 30%, 33% or 39%. The ACC earner levy, your KiwiSaver percentage and any student loan deduction come off as well.
Why does my bonus feel like it was taxed at 40%?
Because deductions stack. On a $90,000 salary a bonus is taxed at 33% PAYE, plus 1.67% ACC, plus 3% KiwiSaver, plus 12% if you have a student loan — that is over half the bonus before it reaches your account. Nothing has gone wrong; the bonus simply sits on top of income that has already used up the lower tax bands.
Is a bonus taxed higher than my normal salary?
It is not taxed at a special penalty rate, but it is taxed entirely at your top marginal rate rather than being spread across the low bands. Your salary gets the benefit of the 10.5% and 17.5% bands first, so the bonus is left with whatever band your income has already reached.
Does KiwiSaver come out of a bonus?
Yes. Bonuses are gross salary or wages, so your chosen 3%, 4%, 6%, 8% or 10% KiwiSaver rate is deducted, and your employer's 3% compulsory contribution is paid on the bonus too (less employer superannuation contribution tax). That is money going into your retirement account, not tax — this calculator shows it separately.
Do student loan repayments apply to a bonus?
Yes — 12 cents in every bonus dollar goes to your student loan if your income is above the repayment threshold. Use the student loan repayment calculator to see how much sooner that clears your balance.
Can I put my bonus into KiwiSaver to pay less tax?
No. Unlike some countries, New Zealand has no salary-sacrifice tax break for KiwiSaver — PAYE is calculated on the gross bonus before your contribution comes out. What extra contributions do achieve is a larger retirement balance and, if you have not hit the cap, more government contribution.
What if my bonus pushes me into a higher tax bracket?
Only the dollars above the threshold are taxed at the higher rate — your whole income is never re-taxed. If a bonus crosses a bracket, this calculator splits the bonus across both rates automatically, which is why the effective rate you see can sit between two bands.
Will I get a tax refund on my bonus?
If your employer used a higher extra pay rate than your final annual income justified, Inland Revenue's automatic end-of-year assessment will refund the difference. Check your income summary in myIR after 31 March.
Related NZ pay and tax calculators
Keep going with the rest of the toolkit — each one uses the same up-to-date New Zealand tax settings.
- Pay Rise CalculatorSee exactly how much of a pay rise you keep after every deduction.
- PAYE Calculator NZ 2026Band-by-band PAYE on your income, plus ACC and student loan.
- KiwiSaver CalculatorCompare 3–10% contribution rates and project your balance.
- NZ Tax Rates & BracketsCurrent income tax brackets, ACC levy and student loan thresholds.