Free New Zealand calculator · 2026/27
Lump Sum Tax Calculator NZ: Bonus, Leave & Redundancy PAYE
Estimate the PAYE, ACC earners’ levy, student loan and KiwiSaver your employer deducts from a lump sum, and what lands in your account. Uses Inland Revenue’s 2026/27 extra-pay method for lump sums paid during employment.
Rules and rates checked against official sources on 2 November 2026 · NZD · Estimates only
How is a lump sum taxed in NZ?
Your employer taxes a lump sum at one flat rate. They take your gross pay for the last 4 weeks, annualise it (× 13, or × 12 if you are paid monthly), add the lump sum, and look up the rate for that total. For 2026/27 the rate is 12.25%, 19.25%, 31.75% or 34.75% including the 1.75% ACC earners’ levy, then 33% from $156,642 and 39% above $180,000.
Only the lump sum is taxed at that rate. Your regular pay is not re-taxed, and any over- or under-deduction is squared up after 31 March.
Your details
Your estimate
2026/27 extra-pay (lump sum) tax rates
Find the row for annualised regular pay + secondary low threshold (if any) + lump sum. Use the “excluding ACC” column for redundancy payments and retiring allowances.
| Annualised income incl. lump sum | PAYE rate excl. ACC | PAYE rate incl. 1.75% ACC |
|---|---|---|
| $15,600 or less | 10.5% | 12.25% |
| $15,601 – $53,500 | 17.5% | 19.25% |
| $53,501 – $78,100 | 30% | 31.75% |
| $78,101 – $156,641 | 33% | 34.75% |
| $156,642 – $180,000 | 33% | 33% (above ACC cap) |
| More than $180,000 | 39% | 39% |
Secondary tax codes
If the lump sum comes from a job on a secondary code, your employer adds the code’s low threshold before looking up the rate: SB $0, S $15,601, SH $53,501, ST $78,101 and SA $180,001. That stands in for the income you earn in your main job.
Student loan deductions
- M SL or ME SL, paid with your regular wages: 12% of (regular pay + lump sum − the pay-period threshold). The 2026/27 thresholds are $464 a week, $928 a fortnight, $1,856 four-weekly and $2,010.66 a month.
- M SL, paid separately after the threshold was already used on your wages: 12% of the whole lump sum.
- Secondary codes with SL (SB SL, S SL, SH SL, ST SL, SA SL): 12% of the whole lump sum. No threshold applies.
KiwiSaver
Employee KiwiSaver contributions come out of lump sums such as bonuses, back pay and cashed-up leave. IRD lists redundancy payments as an exception, so this calculator does not deduct KiwiSaver from redundancy.
Worked examples (2026/27)
1. Bonus on a weekly wage
Aroha earns $1,500 a week on an M code and gets a $5,000 bonus. She contributes 3.5% to KiwiSaver.
- Annualised pay: $1,500 × 52 = $78,000. Add the bonus: $83,000.
- $83,000 falls in the $78,101–$156,641 row: 34.75% → PAYE $1,737.50 ($1,650.00 income tax + $87.50 ACC).
- KiwiSaver: 3.5% × $5,000 = $175.00.
- Net bonus: $3,087.50.
2. The same amount as redundancy
If Aroha’s $5,000 is a redundancy payment, there is no ACC and no KiwiSaver: 33% × $5,000 = $1,650.00 PAYE, so she receives $3,350.00.
3. Cashed-up leave with a student loan (monthly pay)
Sam is paid $1,500 a month on M SL and cashes up $2,000 of leave in the same pay. Annualised: $1,500 × 12 + $2,000 = $20,000 → 19.25% → PAYE $385.00. Student loan: 12% × ($3,500 − $2,010.66) = $178.72. Net: $1,436.28 (no KiwiSaver).
4. Bonus from a second job
Lisa earns $500 a week in her second job on an S code and gets a $1,000 bonus there. $26,000 + $15,601 + $1,000 = $42,601 → 19.25% → PAYE $192.50.
What this calculator does not cover
- Final pays when you leave a job. IRD uses a different annualising method for lump sums at the end of employment. Use our final pay calculator for that situation.
- ND, NSW, tailored or special tax codes, CAE and EDW codes, and employee share scheme benefits.
- Backdated ACC, MSD or Veterans’ Affairs lump sums, which have their own rules.
- Child support, voluntary deductions or a request to deduct at a higher rate.
- Your final tax for the year. PAYE on a lump sum is a withholding; IRD squares up your actual income tax after 31 March.
Official sources
Checked 2 November 2026:
Frequently asked questions
How is a bonus taxed in New Zealand?
Your employer annualises your last 4 weeks of regular gross pay, adds the bonus and applies one extra-pay rate to the whole bonus. In 2026/27 that rate is 12.25%, 19.25%, 31.75% or 34.75% including ACC, or 33% or 39% for higher incomes.
Why does my bonus look like it was taxed at a higher rate?
The extra-pay rate is set by your annualised income plus the bonus, so a large bonus can push the whole payment into a higher rate. It is a withholding only. If too much is deducted, IRD refunds it when your income is squared up after the tax year.
Is redundancy taxed differently from a bonus?
Redundancy uses the same income tax rates, but there is no ACC earners’ levy and no KiwiSaver deduction. A student loan deduction can still apply if your tax code includes SL.
Is KiwiSaver deducted from a lump sum?
Yes for most lump sums, including bonuses, back pay and cashed-up annual leave. Redundancy payments are one of the exceptions IRD lists.
How is student loan deducted from a bonus?
On an M SL or ME SL code the deduction is 12% of the pay period’s regular pay plus the bonus, less the pay-period threshold ($464 a week in 2026/27). On a secondary SL code it is 12% of the whole bonus.
Does a lump sum change the tax on my regular pay?
No. Your regular pay is taxed as normal. Only the lump sum uses the extra-pay rate.