Income Tax Calculator New Zealand (2025/26)
Estimate your New Zealand income tax with current IRD brackets — five simple bands, no tax-free threshold. Free, private, and in New Zealand dollars.
How income tax works in New Zealand
New Zealand runs one of the simplest income tax systems in the developed world, administered by Inland Revenue (IRD). There are five marginal bands, currently starting at 10.5% and topping out at 39% above $180,000 — and that is largely it. There is no tax-free threshold: tax applies from the very first dollar you earn, which surprises people arriving from Australia or the UK. The trade-off is that for most salary earners with one job and PAYE deducted correctly, there is nothing to file at year end.
The tax year runs 1 April to 31 March, and the bands were last reshaped on 31 July 2024, when the lower thresholds were lifted — the first adjustment in over a decade, so figures from before then no longer match current payslips. Alongside income tax, ACC charges a separate earners’ levy on salary and wages (currently 1.67%, capped), which funds accident cover and shows up as its own line in PAYE deductions.
This calculator applies the current IRD bands to estimate your income tax for the year. It models income tax only: the ACC earners’ levy, KiwiSaver contributions, Working for Families tax credits, the independent earner tax credit, student loan repayments, and secondary tax codes are out of scope.
New Zealand tax brackets — 2025/26
| Taxable income (NZD) | Marginal rate |
|---|---|
| $0 – $15,600 | 10.5% |
| $15,600 – $53,500 | 17.5% |
| $53,500 – $78,100 | 30% |
| $78,100 – $180,000 | 33% |
| Above $180,000 | 39% |
Income tax only — the ACC earners’ levy (1.67%) is charged separately and capped. No tax-free threshold; tax applies from the first dollar. Tax year runs 1 April – 31 March; the lower thresholds were lifted on 31 July 2024.
Worked examples
Salary-only estimates under the 2025/26 brackets, computed with the same formula as the calculator below (rebates and credits applied; no other income or deductions).
| Annual salary | Estimated tax | Effective rate | Take-home |
|---|---|---|---|
| $60,000 | $10,221 | 1703.4% | $49,780 |
| $85,000 | $17,928 | 2109.1% | $67,073 |
| $140,000 | $36,078 | 2577.0% | $103,923 |
Frequently asked questions
- Is there a tax-free threshold in New Zealand?
- No. Unlike Australia or the UK, New Zealand taxes income from the first dollar — under the 2025/26 bands the first slice is taxed at 10.5%. The system compensates with targeted credits instead, such as the independent earner tax credit and Working for Families, which this calculator does not model.
- When did the NZ tax brackets last change?
- The lower thresholds were lifted on 31 July 2024 — the first bracket change since 2010. The 2025/26 bands this calculator uses reflect the post-change thresholds in full. If you are comparing against a pre-2024 payslip or an older calculator, the numbers below the top bands will differ.
- Why is my payslip deduction higher than this calculator shows?
- PAYE deductions usually bundle more than income tax: the ACC earners’ levy (currently 1.67% of salary and wages, capped), KiwiSaver contributions (typically 3% or more), and student loan repayments where applicable. This calculator estimates the income tax component only, so a real payslip will normally show a larger total deduction.
- Does this calculator handle secondary tax codes or KiwiSaver?
- No. It estimates annual income tax for an individual under the current IRD bands, assuming all income is taxed on one progressive scale — which is how secondary income ultimately washes out at year end, even though secondary tax codes withhold differently in the meantime. KiwiSaver, ACC, Working for Families, and student loan repayments are out of scope.