New Zealand income tax rates for 2026–27: brackets, ACC levy and take-home pay
New Zealand taxes income in five bands from 10.5% to 39%. This guide sets out the current rates, adds the ACC earners' levy that most employees forget and works through five salaries.
The short answer
New Zealand taxes the first $15,600 at 10.5%, up to $53,500 at 17.5%, up to $78,100 at 30%, up to $180,000 at 33% and anything above at 39%. Employees also pay the ACC earners' levy of 1.75% on earnings up to $156,641. The thresholds have not changed since 1 April 2025.
Five bands, applied one slice at a time
New Zealand's scale is marginal, like Australia's. Each rate applies only to the slice of income inside its band. A person earning $60,000 pays 10.5% on the first $15,600, 17.5% on the next $37,900, and 30% on the remaining $6,500, not 30% on all of it.
The thresholds were last changed on 1 April 2025 and remain the same for the 2026–27 tax year, which runs from 1 April 2026 to 31 March 2027.
The current rates
These are the rates for individuals, the same ones used to set PAYE for most employees.
| Taxable income | 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% |
The ACC earners' levy is separate
On top of income tax, most employees pay the ACC earners' levy, which funds the no-fault accident compensation scheme. It is taken from your pay through PAYE, so it does not appear on the rates table above and is easy to overlook when comparing a gross salary with take-home pay.
For the 2026–27 tax year the earners' levy is 1.75% of liable earnings, up to a maximum of $156,641 of earnings, which means the most anyone pays through PAYE is $2,741.22. The rate rose from 1.67% on 1 April 2026, and the maximum earnings figure rose at the same time.
Five salaries, worked through
The table applies the bands and the ACC levy to an annual salary. It leaves out KiwiSaver, student loan repayments and any tax credits, which depend on your circumstances.
| Annual income | Income tax | ACC earners' levy | Left after tax and ACC |
|---|---|---|---|
| $30,000 | $4,158 | $525 | $25,317 |
| $50,000 | $7,658 | $875 | $41,467 |
| $80,000 | $16,278 | $1,400 | $62,322 |
| $120,000 | $29,478 | $2,100 | $88,422 |
| $180,000 | $49,278 | $2,741 | $127,981 |
Other deductions that come out of pay
KiwiSaver contributions are deducted from gross pay, at 3.5% by default since 1 April 2026, unless you chose a different rate. Student loan repayments are taken at 12 cents for each dollar above the repayment threshold. Both reduce what reaches your bank, but neither is income tax.
The take-home pay calculator on this site includes KiwiSaver and a student loan as options, so you can see the whole picture rather than just the tax.
Why your tax code matters
Your employer uses your tax code to decide how much to withhold. The wrong code, for example 'M' when you have a second job and should be using 'S', leaves you with a bill at the end of the year. If you have more than one source of income, make sure each employer has the right code, and compare your total tax with your total income using the tax refund calculator after the year ends.
Where these numbers come from
- Inland Revenue — tax rates for individuals The five income tax bands
- Inland Revenue — taxation (annual rates for 2026–27) bill information release Confirms the 2026–27 rates are set at the existing schedule 1 rates
Method last reviewed 2026-10-28 This guide is re-checked against the sources above at least once a year, and again whenever a rule it explains changes. Out of date? Tell us and we will fix it.