New Zealand calculator
IRD Tax Calculator NZ
Calculate New Zealand income tax using the Inland Revenue tax brackets for the 2026/27 tax year, then add the ACC earners' levy and any student loan repayment to see your total annual deductions.
Last reviewed by NZ Calculator:
How is income tax calculated in New Zealand?
New Zealand uses progressive tax brackets. Each slice of your annual income is taxed at its own rate: 10.5% to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000 and 39% above that. Inland Revenue applies these rates through your tax code, and the ACC earners' levy is deducted on top.
Your income details
Your tax estimate
Estimate for a full tax year on a primary tax code. It does not apply Working for Families, the independent earner tax credit, ESCT or part-year rates.
New Zealand income tax brackets 2026/27
| Taxable income | Tax rate | Tax on this band |
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How this IRD tax calculator works
The calculator splits your annual income across the Inland Revenue brackets and taxes each slice at its own rate. That is why your effective rate — total tax divided by total income — is always lower than your marginal rate, which is the rate applied to your next dollar earned.
ACC earners' levy
The ACC earners' levy is deducted from salary and wages alongside PAYE. It is charged at a flat rate on income up to an annual cap, so very high earners pay the levy on the capped amount only. It is not income tax and it does not appear in the bracket table above.
Tax codes
Your tax code tells your employer how much PAYE to deduct. M is the standard primary code, ME adds the independent earner tax credit where you qualify, and secondary codes such as S, SH, ST and SA apply to a second job. Using the wrong code is the most common reason a PAYE deduction looks wrong.
What this calculator does not cover
- Provisional tax, self-employed income and business expenses
- Working for Families tax credits and the independent earner tax credit
- Secondary tax codes and multiple jobs
- Extra pay such as bonuses, redundancy or holiday pay lump sums
- Resident withholding tax on interest and dividends
NZ sources: Inland Revenue — tax rates for individuals · ACC — levies.
Frequently asked questions
What are the IRD tax rates in New Zealand?
For the 2026/27 tax year the rates are 10.5% on income to $15,600, 17.5% from $15,601 to $53,500, 30% from $53,501 to $78,100, 33% from $78,101 to $180,000 and 39% above $180,000.
Is the ACC levy the same as income tax?
No. The ACC earners' levy funds accident cover and is deducted separately from PAYE. It is charged at a flat rate on salary and wages up to an annual income cap.
What is the difference between my effective and marginal tax rate?
Your marginal rate is the rate applied to your next dollar of income. Your effective rate is total tax divided by total income, which is always lower because the earlier income is taxed at lower rates.
Which tax code should I use?
M is the standard code for your main job. ME applies where you qualify for the independent earner tax credit. Secondary codes such as S, SH, ST and SA apply to a second source of income. Inland Revenue publishes a tax code questionnaire to confirm the right one.
Does this calculator work for self-employed income?
No. It models salary and wages taxed through PAYE. Self-employed income involves expenses, provisional tax and often GST, so use Inland Revenue guidance or an accountant.
When do student loan repayments start?
Repayments are deducted at 12% on income above the annual repayment threshold. The calculator uses the current threshold when the student loan option is ticked.
Why is my payslip different from this estimate?
Payslips use per-period PAYE tables, your specific tax code, ESCT on employer KiwiSaver contributions, part-year income and rounding. This page is an annual estimate, not a payroll calculation.
Is this an official Inland Revenue calculator?
No. NZ Calculator is independent and not affiliated with Inland Revenue. Use the IRD website or your myIR account for official figures.