Income tax rates 2026/27
| Taxable income | Rate | Secondary code | Tax at the top of the band |
|---|---|---|---|
| $0 – $15,600 | 10.5% | SB | $1,638 |
| $15,601 – $53,500 | 17.5% | S | $8,270.50 |
| $53,501 – $78,100 | 30% | SH | $15,650.50 |
| $78,101 – $180,000 | 33% | ST | $49,277.50 |
| $180,001 and over | 39% | SA | — |
The secondary code for a second job is chosen from your total expected income from all sources, so the flat rate on the second job matches the top rate you pay.
Worked example: $85,000
Income $85,000, 2026/27
$15,600 at 10.5%, $37,900 at 17.5%, $24,600 at 30% and the last $6,900 at 33% add up to $17,927.50 — an average rate of about 21%, even though the top dollar is taxed at 33%.
Income tax$17,9282026/27
- Top rate reached
- 33.0%
- Average tax rate
- 21.09%
- Plus ACC levy
- $1,488
| Income | Rate | Secondary code | Your income | Tax |
|---|---|---|---|---|
| $0 – $15,600 | 10.5% | SB | $15,600 | $1,638 |
| $15,601 – $53,500 | 17.5% | S | $37,900 | $6,633 |
| $53,501 – $78,100 | 30.0% | SH | $24,600 | $7,380 |
| $78,101 – $180,000 | 33.0% | ST | $6,900 | $2,277 |
| $180,001 and over | 39.0% | SA | $0 | $0 |
What changed
The July 2024 Budget raised the thresholds for the first time since 2010: $14,000 → $15,600, $48,000 → $53,500 and $70,000 → $78,100. The 33% and 39% thresholds did not change. No changes were made for 2026/27.
Planning points
- The 30% band starts at $53,501 — a pay rise across it costs more in tax than people expect, especially with a student loan (12%) on top.
- The 39% rate above $180,000 matches the trust tax rate since 2024, removing the advantage of routing income through a trust.
- PIE funds (most KiwiSaver funds) cap tax on investment returns at 28%, below the 30% and 33% personal rates.