How New Zealand's PAYE Tax System Works
New Zealand uses a Pay-As-You-Earn (PAYE) system where employers deduct income tax, ACC levies, and KiwiSaver contributions directly from wages. Tax brackets for the 2025-2026 tax year range from 10.5% on income up to $14,000 up to 39% on income over $180,000. The progressive structure means you only pay higher rates on income above each threshold.
ACC Levies and KiwiSaver Contributions
The Accident Compensation Corporation (ACC) levy is a mandatory insurance contribution of approximately 0.59% on wages, funding injury coverage for all New Zealand residents. KiwiSaver contributions are typically 3%, 4%, 6%, 8%, or 10% of gross salary, with employers contributing a minimum of 3%. These deductions reduce your taxable income and build retirement savings.
Modelling Take-Home Pay
This calculator models PAYE income tax, ACC levies, and KiwiSaver contributions to provide accurate take-home pay estimates. Use the results to plan your budget, compare job offers, or evaluate different KiwiSaver contribution rates and their impact on your net income.