NZ Income Tax Brackets and the IETC
The thresholds below took effect on 31 July 2024 and still apply in 2026-27. Each rate covers only the slice of income inside its band.
| Annual income | Tax rate |
|---|---|
| $0 to $15,600 | 10.5% |
| $15,601 to $53,500 | 17.5% |
| $53,501 to $78,100 | 30% |
| $78,101 to $180,000 | 33% |
| Over $180,000 | 39% |
People earning between $24,000 and $70,000 who do not receive Working for Families or a benefit can use the ME tax code. It gives the independent earner tax credit of $520 a year, reduced by 13 cents per dollar above $66,000. On $50,000 income tax is $7,138 after the credit; on $68,000 the credit is down to $260.
ACC Earners Levy for 2026-27
The earners' levy funds cover for injuries outside work. From 1 April 2026 it is 1.75% of liable earnings, up from 1.67%, and stops at $156,641. The most anyone pays is $2,741.22 a year.
Employers take it with PAYE, so it shows inside the tax line on many payslips. Here it is listed on its own: $1,575 on $90,000.
KiwiSaver Contribution Rates from April 2026
The default employee rate rose from 3% to 3.5% on 1 April 2026, and employers must match it at 3.5%. It is planned to reach 4% from 1 April 2028. You can choose 4%, 6%, 8% or 10% instead, or ask for a temporary 3% rate for three to twelve months.
- KiwiSaver comes out of pay after tax is worked out, so it does not lower PAYE.
- The employer's matching share is taxed through ESCT before it reaches your account and is not part of take home pay.
On $90,000: $3,150 a year at 3.5%, $2,700 at 3%. Leaving KiwiSaver out would lift net pay to $68,847.50.
Student Loan Repayments
New Zealand residents repay 12% of every dollar earned above $24,128 a year. The threshold has been frozen at that figure, so it no longer rises with inflation. Interest is not charged while you live in New Zealand.
With a loan, $90,000 costs $7,904.64 a year in repayments and net pay falls to $57,792.86.
Worked Example on $90,000
- $15,600 at 10.5%: $1,638
- $37,900 at 17.5%: $6,632.50
- $24,600 at 30%: $7,380
- $11,900 at 33%: $3,927, so PAYE $19,577.50
- ACC earners' levy: $1,575; KiwiSaver at 3.5%: $3,150
- Net pay: $65,697.50 a year, $2,526.83 a fortnight, $1,263.41 a week
Deductions take 27.0% of gross. A pay rise in the 33% band keeps about $0.62 of each extra dollar.
Take Home Pay in New Zealand at Six Salaries
| Salary | PAYE | ACC | KiwiSaver 3.5% | Net a year | Net a fortnight |
|---|---|---|---|---|---|
| $30,000 | $3,638 | $525 | $1,050 | $24,787 | $953.35 |
| $50,000 | $7,138 | $875 | $1,750 | $40,237 | $1,547.58 |
| $65,000 | $11,200.50 | $1,137.50 | $2,275 | $50,387 | $1,937.96 |
| $90,000 | $19,577.50 | $1,575 | $3,150 | $65,697.50 | $2,526.83 |
| $120,000 | $29,477.50 | $2,100 | $4,200 | $84,222.50 | $3,239.33 |
| $200,000 | $57,077.50 | $2,741.22 | $7,000 | $133,181.28 | $5,122.36 |
The $30,000 and $50,000 rows include the independent earner tax credit. No student loan in any row.
What Is Taxed and What Is Not
- Taxed as salary or wages: regular pay, overtime, holiday pay, bonuses and commission. Bonuses are often taxed through the extra pay rate on the day, then evened out at year end.
- Not taxed: genuine reimbursements and some allowances, such as a reasonable meal or tool allowance.
- Fringe benefits such as a work car are taxed on the employer through FBT, not on your payslip.
Weekly, Fortnightly and Monthly Pay in NZ
Most New Zealand employers pay weekly or fortnightly, and PAYE tables are set for each period so that a full year of pays lands close to the annual figures here. On $90,000 a weekly payslip shows about $1,730.77 gross and $1,263.41 net. Monthly payroll gives $5,474.79.
If one pay is unusually large, PAYE for that period can run high. Inland Revenue squares the year off automatically after 31 March and either refunds the extra or sends a bill.
Assumptions and Sources for New Zealand
- Tax resident, tax code M (or ME where the credit applies), one job for the whole tax year.
- KiwiSaver at the chosen rate on gross pay; employer contributions and ESCT not deducted from you.
- ACC at the 2026-27 rate for the full year. Secondary tax codes and Working for Families not modelled.
Sources: Inland Revenue tax rates for individuals, ACC earners' levy rates, KiwiSaver changes and student loan pages, and the IRD payroll specification for 2026. Rates for 2026-27. To compare with Australian pay, open the Australia Gross to Net Calculator.
Frequently Asked Questions
How much is $90,000 after tax in NZ?
$65,697.50 a year with KiwiSaver at 3.5%, or $68,847.50 without KiwiSaver, in 2026-27.
What is the KiwiSaver default rate in 2026?
3.5% from 1 April 2026 for both employee and employer, up from 3%.
What is the ACC levy for 2026-27?
1.75% of earnings up to $156,641, so at most $2,741.22 a year.
When does the 39% rate apply?
On the part of income above $180,000 a year.
How much is the student loan repayment?
12% of earnings above $24,128 a year, taken from each pay.
Who gets the independent earner tax credit?
Residents earning $24,000 to $70,000 who are not getting Working for Families or a main benefit. It is worth up to $520 a year.