NZ Tax Rates & Tax Brackets 2026
The current New Zealand income tax rates and thresholds, the ACC earner levy, and the student loan threshold — plus a band-by-band view of the tax on your own salary.
Current NZ income tax brackets
Rates for the tax year running 1 April to 31 March. Each band only taxes the income that falls inside it.
| Taxable income | Tax rate | Max tax in band |
|---|---|---|
| $0 – $15,600 | 10.5% | $1,638 |
| $15,601 – $53,500 | 17.5% | $6,633 |
| $53,501 – $78,100 | 30.0% | $7,380 |
| $78,101 – $180,000 | 33.0% | $33,627 |
| $180,001 and over | 39.0% | — |
On top of PAYE, the ACC earner levy takes 1.7% of earnings up to $152,790 a year, and student loan repayments take 12.0% of everything above $24,128.
Tax on your salary, band by band
PAYE a year
$14,721
Effective tax rate
19.6%
21.3% including ACC
Top bracket you reach
30.0%
Applies only to your top dollars
| Band | Rate | Your income in band | Tax |
|---|---|---|---|
| $0 – $15,600 | 10.5% | $15,600 | $1,638 |
| $15,601 – $53,500 | 17.5% | $37,900 | $6,633 |
| $53,501 – $78,100 | 30.0% | $21,500 | $6,450 |
| $78,101 – $180,000 | 33.0% | $0 | $0 |
| $180,001 and over | 39.0% | $0 | $0 |
To add KiwiSaver and student loan deductions and see your take-home pay, use the after tax calculator or the PAYE calculator.
Tax by salary level
PAYE and the ACC earner levy at common salary levels, before KiwiSaver and student loan.
| Salary | PAYE | ACC levy | Effective rate | Take-home a year |
|---|---|---|---|---|
| $30,000 | $4,158 | $501 | 15.5% | $25,341 |
| $45,000 | $6,783 | $752 | 16.7% | $37,466 |
| $60,000 | $10,221 | $1,002 | 18.7% | $48,778 |
| $75,000 | $14,721 | $1,253 | 21.3% | $59,027 |
| $90,000 | $19,578 | $1,503 | 23.4% | $68,920 |
| $120,000 | $29,478 | $2,004 | 26.2% | $88,519 |
| $150,000 | $39,378 | $2,505 | 27.9% | $108,118 |
| $200,000 | $57,078 | $2,552 | 29.8% | $140,371 |
How the brackets actually work
New Zealand tax is marginal, not flat. Crossing a threshold never re-taxes the income below it. Someone earning $80,000 pays 10.5% on their first $15,600, 17.5% on the next slice, 30% up to $78,100, and only 33% on the last $1,900. That is why a pay rise is never "eaten by the next tax bracket" — it is only the new dollars that are taxed at the higher rate.
What does change the picture is everything sitting alongside PAYE: the ACC earner levy, your KiwiSaver rate and any student loan repayment. Together they explain most of the gap between a headline pay rise and what lands in your account — the pay rise calculator splits that out dollar by dollar. If you have a second job, the secondary tax calculator shows which tax code applies to it.
NZ tax rate questions, answered
What are the current NZ income tax rates?
New Zealand uses progressive tax brackets: 10.5% on income up to $15,600, 17.5% from $15,601 to $53,500, 30% from $53,501 to $78,100, 33% from $78,101 to $180,000, and 39% on income above $180,000. Every dollar is taxed at the rate for the band it falls in, not at one flat rate.
What are the NZ tax brackets for 2026?
The brackets above are the ones in force for the current tax year, which runs 1 April to 31 March. They were last changed on 31 July 2024, so the full-year rates used from the 2025/26 year onwards are the same set shown on this page.
Is there a tax-free threshold in New Zealand?
No. Unlike Australia or the UK, New Zealand taxes income from the first dollar. The lowest band is 10.5%, which applies to your first $15,600 of income.
Does moving into a higher tax bracket tax all my income more?
No, and this is the single most common misunderstanding. Only the income above the bracket threshold is taxed at the higher rate. If you move from $53,000 to $55,000, only the $1,500 above $53,500 is taxed at 30% — the rest is unchanged.
Is the ACC earner levy part of income tax?
No. The ACC earner levy is a separate deduction of 1.67% on earnings up to $152,790 a year. It is taken out of your pay alongside PAYE, which is why your total deduction rate is higher than the tax rates alone.
What is my effective tax rate?
Your effective rate is total tax divided by total income, and it is always lower than your top bracket rate. On a $90,000 salary, for example, the top rate touching your income is 33% but the effective PAYE rate is closer to 24%.
What is the student loan repayment threshold?
Repayments of 12% apply to every dollar you earn above $24,128 a year (about $464 a week). It is a repayment of your own debt rather than a tax, but it comes out of the same pay packet.
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.
- PAYE Calculator NZ 2026Band-by-band PAYE on your income, plus ACC and student loan.
- After-Tax Pay CalculatorTurn a gross salary into weekly, fortnightly and monthly take-home pay.
- Secondary Tax CalculatorWork out your SB, S, SH, ST or SA code on a second job.
- Average Salary NZMedian pay from Stats NZ and how your salary compares.