How pay after tax works in New Zealand

New Zealand keeps payroll simple: PAYE income tax on a progressive scale from 10.5% to 39%, plus the ACC earner levy that funds the accident compensation scheme. There is no tax-free threshold, but the independent earner tax credit (IETC) gives some middle earners a small reduction. There is also no separate social security tax beyond the ACC levy.

Most employees contribute to KiwiSaver, the voluntary retirement savings scheme, and if you have a student loan a repayment is deducted above the threshold. The calculator applies PAYE, the ACC levy, the IETC, KiwiSaver and any student loan to give your take-home pay.

What this calculator works out

  • PAYE income tax on the progressive scale
  • The ACC earner levy
  • The independent earner tax credit (IETC)
  • KiwiSaver contributions and student loan repayments