New Zealand · 2026/27 PAYE rates
New Zealand PAYE Rates 2026/27
Every PAYE rate and threshold for the 2026/27 tax year — income tax brackets, ACC, KiwiSaver, student loan and secondary tax codes.
Type your gross pay, then choose the period below.
IETC adds up to $520/yr for income $24,000–$70,000 on an M/ME tax code, if you don’t get Working for Families, a benefit or NZ Super.
Your take-home pay
per year
- Gross pay
- PAYE income tax
- — incl. IETC credit
- ACC earner’s levy
- KiwiSaver (you)
- Student loan
- Take-home pay
- Employer KiwiSaver (on top)
Indicative only, based on 2026/27 rates published by Inland Revenue (IRD). Not tax advice. Your actual PAYE is calculated by your employer using the IRD PAYE tables.
This page lists the PAYE rates and thresholds for the 2026/27 New Zealand tax year (1 April 2026 – 31 March 2027), as published by Inland Revenue (IRD). Every rate your employer uses to work out PAYE on your salary or wage is here: income tax brackets, the ACC earner’s levy, KiwiSaver, student loan and the Independent Earner Tax Credit. To apply them to your own pay, use the PAYE calculator above to calculate your take home pay.
PAYE income tax rates 2026/27
New Zealand runs a progressive tax system, so each tax rate only applies to the income inside that bracket. There is no tax-free threshold — PAYE tax applies from the first dollar of gross income, whether you earn a wage or salary or are paid an hourly wage. These income tax brackets are unchanged from 2025/26.
| Taxable income | Tax rate |
|---|---|
| $0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| $180,001 and over | 39% |
ACC earner’s levy
On top of income tax, every employee pays the ACC earner’s levy. For 2026/27 the rate is 1.75% of gross earnings (up from 1.67%), charged up to a maximum of $156,641. It’s collected through PAYE alongside your income tax.
KiwiSaver rates
From 1 April 2026 the default employee KiwiSaver rate is 3.5% (up from 3%), with options of 3%, 4%, 6%, 8% or 10%. Your employer contributes a minimum of 3.5% on top of your salary, subject to ESCT. KiwiSaver contributions come out of your gross pay but are not tax-deductible, and you can change your KiwiSaver contribution rate through your employer at any time.
Student loan
If you have a student loan and an SL tax code, the repayment rate is 12% of income over the annual repayment threshold of $24,128 ($464 a week). On secondary income, 12% applies to every dollar.
Independent Earner Tax Credit (IETC)
The IETC is worth up to $520 a year for people earning $24,000–$70,000 who don’t get Working for Families, a benefit or NZ Super. The full credit applies up to $66,000, then reduces by 13 cents per dollar to zero at $70,000.
Secondary tax codes and rates
Income from a second job uses a secondary tax code set by your total income from all sources. The secondary tax rate is a flat rate on the second income:
| Code | Total income, all jobs | Rate |
|---|---|---|
| SB | Up to $15,600 | 10.5% |
| S | $15,601–$53,500 | 17.5% |
| SH | $53,501–$78,100 | 30% |
| ST | $78,101–$180,000 | 33% |
| SA | $180,001+ | 39% |
See the secondary tax calculator to find your code. The GST rate in New Zealand is 15% — use the GST calculator for that.
What changed for 2026/27
The income tax rates and thresholds are the same as last year. On 1 April 2026 two things rose: the ACC levy from 1.67% to 1.75%, and the default KiwiSaver rate from 3% to 3.5%. Together they slightly reduce take-home pay even though income tax is unchanged.
How the current brackets came about
The current thresholds date back to the Budget 2024 tax relief package announced on 30 May 2024. The higher thresholds took effect on 31 July 2024, which meant composite rates for that part-year; from 1 April 2025 the full-year brackets applied for the 2025-2026 tax year, and they carried over unchanged into 2026/27. The rises in your payslip since then have come from ACC and KiwiSaver, not from income tax increases.
Who pays these rates: residency
These PAYE rates apply to New Zealand tax residents, who pay tax on their worldwide income — overseas income included, with credits for foreign tax already paid. Non-residents generally pay NZ tax only on income in New Zealand. Either way, how your income is taxed each payday depends on your tax code — the correct tax code means you pay the right amount through the year and avoid a surprise bill. Employers also pay FBT (fringe benefit tax) on non-cash perks, but that sits outside PAYE.
How PAYE rates fit New Zealand’s tax system
New Zealand’s tax system uses these PAYE tax brackets to set how much NZ tax individuals pay. Your marginal tax rate is the rate on your top dollar, while the amount of tax you actually pay — your average personal income tax — is lower, because the lower brackets are taxed less. Most New Zealanders never file a tax return for PAYE income: the deduction is made each payday and squared up at the end of the tax year against your IRD number, and what’s left is your take home pay. These personal tax thresholds and PAYE tax brackets are set by the government, and any new thresholds take effect from 1 April. Individual tax on a salary is all collected through PAYE, so most people don’t pay tax separately.
Frequently asked questions
Can I change the tax rates to a different year?
This page shows the current 2026/27 rates. The income tax brackets are the same as 2025/26; the ACC levy and KiwiSaver default rate changed on 1 April 2026.
Does PAYE cover KiwiSaver and student loan deductions?
PAYE itself is income tax plus the ACC levy. KiwiSaver and student loan are separate deductions your employer takes through the same pay run and sends to IRD.
Are there PAYE rates for self-employed or contract workers?
Self-employed people and most contractors don’t have PAYE deducted; they pay income tax (and often provisional tax) directly to IRD on their net profit.
How is the ACC levy calculated?
It’s 1.75% of your gross earnings for 2026/27, up to a cap of $156,641, deducted through PAYE alongside income tax.