How PAYE is worked out
- Income tax on your annual pay (IRD’s tables annualise each weekly or fortnightly amount):
| Income | Rate |
|---|---|
| $0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| Over $180,000 | 39% |
- ACC earners’ levy: 1.75% of earnings, up to a maximum of $2,741.22 a year.
- Independent earner tax credit (ME code): $520 a year ($10 a week) for incomes from $24,000 to $66,000, reducing by 13 cents per dollar to nil at $70,000.
- KiwiSaver: 3.5% by default from 1 April 2026 (or 4%, 6%, 8% or 10% if you choose).
- Student loan: 12% of pay above $24,128 a year ($464 a week).
Your employer also adds at least 3.5% of your gross pay to your KiwiSaver, minus employer superannuation contribution tax (ESCT).
Worked example: $75,000 a year
Salary $75,000, tax code M, no KiwiSaver or student loan, 2026/27
Income tax is $1,638 on the first $15,600, $6,632.50 on the next $37,900 and $6,450 at 30% on the remaining $21,500 — $14,720.50 in total. The ACC levy adds $1,312.50, leaving $58,967.00 a year, or $1,133.98 a week.
Take-home pay$58,967.00a year
- Take-home per year
- $58,967
- PAYE per year
- $16,033incl. ACC levy
- Employer KiwiSaver (after ESCT)
- $0per year, on top
| Item | Year | Month | Fortnight | Week |
|---|---|---|---|---|
| Gross pay | $75,000.00 | $6,250.00 | $2,884.62 | $1,442.31 |
| Income tax | −$14,720.50 | −$1,226.71 | −$566.17 | −$283.09 |
| ACC earners’ levy | −$1,312.50 | −$109.38 | −$50.48 | −$25.24 |
| Take-home pay | $58,967.00 | $4,913.92 | $2,267.96 | $1,133.98 |
With KiwiSaver at 3.5% and a student loan, take-home pay on the same salary falls to $50,237 a year — but your employer contributes $1,838 to your KiwiSaver after ESCT.
What changed on 1 April 2026
- ACC levy rose from 1.67% to 1.75%, and the earnings cap from $152,790 to $156,641.
- KiwiSaver default employee and minimum employer rates rose from 3% to 3.5%. You can apply for a temporary rate reduction to stay at 3% for 3–12 months.
- 16 and 17-year-old KiwiSaver members now receive employer contributions.
- Tax brackets did not change.
Tips
- Check your tax code if you have more than one job — the wrong secondary code is the most common cause of a tax bill.
- Use a tailored tax code if your secondary income would otherwise be over-taxed; you can apply in myIR.
- Contribute at least $1,042.86 a year to KiwiSaver to get the maximum $260.72 government contribution (if your income is under $180,000).