How your take-home pay is worked out
Every pay, your employer takes four things out before the money reaches you:
- Income tax, charged in brackets, so each slice of your income is taxed at its own rate. A pay rise never makes you worse off.
- ACC earners' levy, which pays for accident cover. 1.75% in 2026–27, on earnings up to $156,641.
- KiwiSaver, if you're a member. The default is now 3.5% of your pay, and you can choose 4%, 6%, 8% or 10%.
- Student loan repayments, if you have a loan. 12 cents of every dollar you earn over $24,128 a year.
If you earn between $24,000 and $70,000 and don't get Working for Families, a main benefit or NZ Super, the independent earner tax credit gives back up to $10 a week ($520 a year). It shrinks by 13 cents for every dollar over $66,000.
NZ income tax brackets 2026–27
Budget 2026 left the brackets unchanged, so 2026–27 uses the same rates as 2025–26.
| Income | Tax rate | Tax on that slice |
|---|---|---|
| $0 – $15,600 | 10.5% | up to $1,638 |
| $15,601 – $53,500 | 17.5% | up to $6,632.50 |
| $53,501 – $78,100 | 30% | up to $7,380 |
| $78,101 – $180,000 | 33% | up to $33,627 |
| Over $180,000 | 39% | 39c per dollar |
Worked example: $70,000 a year
For 2026–27, with 3.5% KiwiSaver and no student loan:
- Income tax: $1,638 + $6,632.50 + $4,950 = $13,220.50
- ACC: $70,000 × 1.75% = $1,225
- KiwiSaver: $70,000 × 3.5% = $2,450
- Independent earner tax credit: $0 (it runs out at $70,000)
- Take-home: $53,104.50 a year, about $1,021 a week
Questions people ask
What's the difference between PAYE and income tax?
PAYE ("pay as you earn") is the deduction your employer takes from each pay. It covers your income tax and your ACC earners' levy. Student loan and KiwiSaver deductions come out of the same pay but are counted separately.
Why doesn't my payslip match exactly?
Your employer works PAYE out per pay period, using Inland Revenue's tables, so cents get rounded each pay. This calculator works on a yearly basis and divides down. It will be within a few dollars, but your payslip is the final word. Secondary jobs, special tax codes and lump sums (bonuses, back pay) are taxed differently and aren't covered here.
What does my employer pay into KiwiSaver?
From 1 April 2026, employers must contribute at least 3.5% of your gross pay if you're contributing. If you've temporarily dropped back to 3%, they can too. Employer contributions are taxed at your employer superannuation contribution tax (ESCT) rate before they reach your account. The calculator shows an estimate under the table.
How is hourly pay converted?
Hourly × your hours per week × 52 weeks. A fortnight is a year ÷ 26 and a month is a year ÷ 12.
Is my information saved?
No. The sums run in your browser, and nothing you type leaves your device.
Sources: Inland Revenue and ACC, Tax rates for individuals, ACC earners' levy, Student loans, KiwiSaver and Independent earner tax credit. Rates checked October 2026. This is an estimate, not tax advice.