PAYE calculator NZ: take-home pay 2026/27
Estimate New Zealand take-home pay from salary or hourly wages using Inland Revenue PAYE brackets, ACC earners' levy, KiwiSaver, and Student Loan for the 2026/27 tax year.
Built for primary and secondary tax codes, Independent Earner Tax Credit on ME codes, and a lump sum mini calculator for bonuses and similar extra pay. Switch between 2024/25, 2025/26, and 2026/27.
Income tax brackets from 1 April 2025 are unchanged into 2026/27. The year switch mainly affects 2024/25 transitional rates and the KiwiSaver default.
How PAYE tax works in New Zealand
PAYE means Pay As You Earn. It is how Inland Revenue (IRD) collects income tax from salary and wage earners through the year. Your employer works out tax on each pay, deducts it from gross wages, and pays IRD on your behalf. You receive the net amount in your bank account.
New Zealand uses progressive income tax. Income is split into brackets. Each bracket has its own rate. You only pay the higher rate on the dollars that sit in that bracket. That is why your effective tax rate (average across all income) is lower than your marginal rate (the rate on your next dollar). Official brackets are on the IRD tax rates for individuals page.
What comes out of your pay packet
Gross salary is not take-home pay. Before money lands in your account, several amounts usually come out. PAYE income tax is the largest for most people. You also pay the ACC earners' levy (collected with PAYE), optional or default KiwiSaver employee contributions, and Student Loan repayments if your tax code includes SL and you earn above the threshold on primary pay.
This NZ PAYE tax calculator is built for that full picture: primary and secondary tax codes, IETC via ME codes, ACC, KiwiSaver, Student Loan, and a lump sum mini tool for bonuses and similar extra pay. If you invoice as a contractor instead of receiving PAYE wages, switch to the self-employed tax calculator or the withholding tax calculator. For business GST on top of wages, use the free GST calculator. Contractor GST basics are in GST for contractors.
More than a basic salary box
Built for tax codes, secondary income, IETC, lump sum PAYE, and year switching.
Full deduction breakdown
See PAYE, ACC, KiwiSaver, Student Loan, and IETC when ME codes apply. Switch annual, monthly, fortnightly, weekly, and hourly views.
All-in-one view2026 tax year switcher
Compare 2024/25 transitional brackets with 2025/26 and 2026/27. Income tax from 1 April 2025 carries into 2026/27. The year switch also updates the KiwiSaver default.
2024/25 to 2026/27Bonus and secondary tools
Estimate PAYE on a bonus or other lump sum using IRD flat rates, and model secondary codes SB, S, SH, ST, or SA for a second job.
Beyond basic PAYEThree steps to take-home pay
Enter your income
Type annual salary or hourly rate, pick the tax year, and choose your IRD tax code (primary M or ME, or a secondary code).
Set KiwiSaver and Student Loan
Choose your employee KiwiSaver rate and turn Student Loan on if needed. Codes ending in SL sync the Student Loan toggle. Thresholds follow IRD published rates.
Read the breakdown
See PAYE, ACC, KiwiSaver, Student Loan, and IETC when ME applies. Use the lump sum mini calculator for bonus PAYE, then download a PDF if you want a working paper.
What Kiwi workers take home
Examples for 2026/27 primary M code with progressive PAYE, ACC at 1.75%, and the KiwiSaver rate shown.
Part-time retail: $23.15/hr
At 25 hours a week this is about $30,095 a year. After PAYE ($4,174.63), ACC ($526.66), and 3.5% KiwiSaver ($1,053.33), weekly take-home is about $468.
PAYE: minus $4,174.63 · ACC: minus $526.66 · KS: minus $1,053.33
Take-home: $24,340.38/yr ($468.08/wk)
Graduate: $55,000 + Student Loan
After PAYE ($8,720.50), ACC ($962.50), KiwiSaver at 3.5% ($1,925), and Student Loan at 12% above $24,128 ($3,704.64), take-home is $39,687.36 a year ($763.22 a week).
PAYE: minus $8,720.50 · ACC: minus $962.50 · KS: minus $1,925 · SL: minus $3,704.64
Take-home: $39,687.36/yr ($763.22/wk)
Electrician: $85,000
Marginal rate is 33%. After PAYE ($17,927.50), ACC ($1,487.50), and KiwiSaver at 3.5% ($2,975), take-home is $62,610 a year ($1,204.04 a week).
PAYE: minus $17,927.50 · ACC: minus $1,487.50 · KS: minus $2,975
Take-home: $62,610/yr ($1,204.04/wk)
Software engineer: $140,000
After PAYE ($36,077.50), ACC ($2,450), and KiwiSaver at 6% ($8,400), take-home is $93,072.50 a year. Choosing 6% instead of 3.5% reduces take-home by $3,500 a year while lifting retirement savings.
PAYE: minus $36,077.50 · ACC: minus $2,450 · KS(6%): minus $8,400
Take-home: $93,072.50/yr ($1,789.86/wk)
Contracting rather than on PAYE? Use the self-employed tax calculator or withholding tax calculator. Employers offering cars or other perks can check the FBT calculator. Staff vs contractor classification is covered in contractors vs employees, with a worked comparison in retail vs contractor GST.
NZ income tax brackets from 1 April 2025
These progressive rates apply for 2025/26 and 2026/27 (1 April 2026 to 31 March 2027), as published on the IRD individual tax rates page. Each bracket only taxes income inside its range.
| Annual income range | Tax rate | Tax on this bracket | Cumulative tax |
|---|---|---|---|
| $0 to $15,600 | 10.5% | $1,638.00 | $1,638.00 |
| $15,601 to $53,500 | 17.5% | $6,632.50 | $8,270.50 |
| $53,501 to $78,100 | 30% | $7,380.00 | $15,650.50 |
| $78,101 to $180,000 | 33% | $33,626.67 | $49,277.17 |
| $180,001 and over | 39% | 39% of excess | Above + 39% |
On a payslip, PAYE often appears combined with ACC. IRD publishes the combined deduction view on its tax codes page (for example 12.25% on the first bracket, which is 10.5% tax plus 1.75% ACC). This calculator shows PAYE and ACC as separate lines so you can see each piece.
Other amounts on a typical NZ payslip
| Item | 2026/27 rule of thumb |
|---|---|
| ACC earners' levy | $1.75 per $100 of liable earnings (1.75%), up to $156,641. Maximum levy about $2,741.22. Confirmed on IRD tax codes and ACC materials. |
| KiwiSaver (employee) | Default 3.5% from 1 April 2026. You can choose 3.5%, 4%, 6%, 8%, or 10%. A temporary 3% reduction is available via IRD. See IRD KiwiSaver changes. |
| KiwiSaver (employer) | Compulsory employer contribution at least 3.5% from 1 April 2026 (unless temporary reduction rules apply). Paid on top of salary. May attract ESCT. |
| Student Loan | 12% of every dollar above $24,128 a year on primary employment ($464 weekly, $928 fortnightly, $1,856 four weekly, $2,010.66 monthly). On secondary codes, 12% from the first dollar. Source: IRD Student Loans. |
| PAYE deduction tables | Payroll uses the IRD weekly and fortnightly PAYE deduction tables (IR340) and four weekly and monthly tables (IR341), updated for April 2026. You can download the PDFs from the IRD tax rates for individuals page. |
Late filing or payment on a GST registered business is a different topic. If that is your risk, use the late GST penalty calculator. Instalment tax for the self-employed sits in the provisional tax calculator. Common GST traps for small operators are covered in navigating the GST minefield.
NZ tax codes for salary and wages
Primary: M for main income. ME for main income with Independent Earner Tax Credit during the year. Add SL if you have a Student Loan (M SL or ME SL). Give your employer an IR330 tax code declaration. If you do not, they may deduct at the non-declaration rate of 45%.
Secondary (second job or extra income source): Use one primary code only. Extra jobs use SB, S, SH, ST, or SA based on your estimated total income from all sources. Rates before ACC match the income bands on the IRD secondary tax table: SB 10.5%, S 17.5%, SH 30%, ST 33%, SA 39%. Secondary codes apply a flat rate. There is no progressive lower bracket on that pay stream.
This page is a PAYE secondary tax calculator NZ as well as a primary pay tool: pick the secondary code that matches your total income estimate, enter the secondary salary or hourly rate, and read take-home on that stream. Wrong codes on two jobs are a common cause of a year-end bill. Secondary tax is not double tax: it applies your correct marginal rate to the second income from the first dollar, and IRD squares it up after 31 March. If a standard secondary code takes too much, you can apply for a tailored tax code in myIR.
Independent Earner Tax Credit
The Independent Earner Tax Credit (IETC) can apply if you are a New Zealand tax resident earning between $24,000 and $70,000 and you do not receive Working for Families, an income-tested benefit, NZ Super, or Veteran's Pension (or overseas equivalents). The most you can receive is $520 a year.
From July 2024, if income before tax is $24,000 to $66,000 you get $10 a week. From $66,001 to $70,000 the credit reduces by 13 cents for every dollar over $66,000. For salary and wages during the year, use tax code ME or ME SL. Some IRD tools do not apply IETC by default. This calculator shows IETC as a credit line when those codes are selected and income sits in the band.
PAYE tax on bonus and lump sum payments
Bonuses, extra pay, and many cashed-up leave amounts are lump sum payments. IRD does not always tax them through normal progressive weekly tables. Employers often annualise recent pay, add the lump sum (and a secondary low threshold if a secondary code applies), then apply a flat PAYE rate from IRD's lump sum table.
For 2026/27, rates that include ACC at 1.75% are 12.25%, 19.25%, 31.75%, and 34.75% up to the ACC max of $156,641, then 33% to $180,000, and 39% above $180,000. Redundancy, retiring allowances, and some employee share scheme amounts use the column that excludes ACC. KiwiSaver is not deducted from redundancy. Confirm the method on IRD: calculate PAYE for a lump sum payment. The lump sum mini calculator on this page approximates that approach when you enter annualised income and the bonus amount.
How this PAYE income tax calculator works
Worked example for a $65,000 primary salary in 2026/27 with 3.5% KiwiSaver and no Student Loan.
Bracket 2: ($53,500 minus $15,600) × 17.5% = $37,900 × 17.5% = $6,632.50
Bracket 3: ($65,000 minus $53,500) × 30% = $11,500 × 30% = $3,450.00
Total PAYE: $1,638 + $6,632.50 + $3,450 = $11,720.50
Effective rate: $11,720.50 ÷ $65,000 = 18.03%
ACC levy: $65,000 × 1.75% = $1,137.50
KiwiSaver (3.5%): $65,000 × 3.5% = $2,275.00
Take-home: $65,000 minus $11,720.50 minus $1,137.50 minus $2,275.00 = $49,867.00/year (about $959/week)
Notes that trip people up
KiwiSaver and tax: Employee KiwiSaver is taken from pay after PAYE is calculated. You still pay income tax on full gross. KiwiSaver does not reduce taxable income. Rules: IRD KiwiSaver deductions from employee pay.
ACC earners' levy: Charged on gross earnings up to $156,641 for 2026/27 at 1.75% ($1.75 per $100). Above the cap, no further ACC earners' levy on that income.
Student Loan: On primary codes with SL, repay 12% of every dollar above $24,128 a year. On secondary codes with SL, repay 12% from the first dollar. Special rates and exemptions exist for some cases. Check IRD Student Loan salary and wages.
Five PAYE mistakes that cost money
Common errors that lead to underpayment, overpayment, or surprises after 31 March.
1. Using the wrong tax code
If two jobs both use M, you can underpay PAYE and face a bill. The second job should use SB, S, SH, ST, or SA based on total income. Confirm with the IRD tax codes for individuals guidance and a fresh IR330.
Risk: unexpected tax bill at year end2. Confusing gross and net in job offers
Job ads on Seek and Trade Me Jobs quote gross salary. A $70,000 job with 3.5% KiwiSaver and no Student Loan takes home about $53,105 after PAYE and ACC. Run this tax calculator NZ PAYE tool before you accept an offer.
Impact: budgeting shortfall if you plan on gross figures3. Skipping your income tax assessment
If income changed mid-year, or you donated, you may have overpaid. IRD finalises this in your income tax assessment. Keep myIR details current.
Missed refund: check your assessment each year4. Leaving KiwiSaver on autopilot
From 1 April 2026 the default employee rate is 3.5%. You can choose higher rates, or apply for a temporary 3% reduction. At $65,000, the gap between 3.5% and 6% is $1,625 a year of take-home versus retirement saving. See IRD KiwiSaver changes.
Long-term impact: contribution rate compounds over decades5. Ignoring the Student Loan threshold
Primary SL repayments only start above $24,128 a year ($464 a week). Below that, repayments should not apply on primary pay, but a wrong code can still trigger deductions. Check the payslip and payroll if figures look wrong.
Risk: unnecessary deductions until year-end correctionWhen is PAYE due and how do employers pay it
Employees do not pay PAYE to Inland Revenue themselves. Your employer deducts PAYE, ACC, KiwiSaver, and Student Loan each payday, files the employment information through payday filing in myIR, and pays the deductions to IRD by the due date.
| Employer size (gross annual PAYE and ESCT) | When PAYE is paid to IRD |
|---|---|
| Less than $500,000 (small to medium) | Once a month, by the 20th of the following month. |
| $500,000 or more (large employer) | Twice a month: pay days from the 1st to 15th are due by the 20th of the same month; pay days from the 16th to month end are due by the 5th of the next month (16 to 31 December is due by 15 January). |
Due dates are set out on the IRD paying deductions to Inland Revenue page. Miss a due date and late payment penalties plus use of money interest can apply, so payroll should file and pay on time.
A sole trader or contractor is different. You do not run PAYE on your own drawings: you pay income tax on your net profit, usually through provisional tax, and schedular payments may have withholding tax deducted at the source. If you are weighing wages against self employment, compare with the self-employed tax calculator, the withholding tax calculator, and the provisional tax calculator.
Our verification process
How rates and logic are checked against IRD sources.
PAYE figures on GSTCalc.nz are checked against published IRD rates before they go live:
IRD cross-check
Tax brackets, secondary codes, IETC bands, Student Loan threshold, ACC cap, and lump sum rates are verified against IRD published pages.
Worked examples
Scenario salaries are recalculated with the same engine used in the live calculator so published examples match the tool.
Edge coverage
Checks cover primary and secondary codes, IETC abatement, ACC cap, Student Loan primary vs secondary, and KiwiSaver rate options.
What we are: A free calculation tool that aims to match IRD published rates for budgeting, job comparison, and payroll sanity checks. Ads may help fund the site. We are not Inland Revenue and this is not tax advice. Figures are working papers.
What we are not: A substitute for professional advice. For complex situations, multiple income sources, Working for Families, or unusual lump sums, talk to a registered tax agent or contact IRD. Publisher details are on About us and Contact. Privacy: Privacy policy. Need GST invoices for a side business? Use the GST invoice generator. Thinking about registration? Read register for GST in NZ.
Frequently asked questions about PAYE in New Zealand
PAYE pay breakdown
Take-home pay summary · New Zealand · GSTCalc.nz
This report was generated by gstcalc.nz. Verified against IRD published rates.
Calculations use IRD tax brackets for the selected tax year. ACC levy at 1.75% (capped at $156,641 for 2026/27). Student Loan repayments at 12% above $24,128 on primary codes.
Disclaimer: This document is for informational and budgeting purposes only. It does not constitute financial or tax advice. Verify figures with a qualified accountant or your employer's payroll department.
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