What is the New Zealand Income Tax Calculator?
This calculator applies to New Zealand and estimates your annual PAYE (Pay As You Earn) income tax, the ACC Earners' Levy, and your take-home (net) pay. It uses the 2024/25 composite annual tax brackets published by Inland Revenue. Figures are estimates and do not include student loan repayments, KiwiSaver contributions, the independent earner tax credit, or other adjustments.
How to use it
Enter your annual gross income in NZD and choose whether to include the ACC Earners' Levy (most salary and wage earners pay it). The calculator splits your income across each tax bracket, applies the relevant rate to each slice, adds the ACC levy, and subtracts the total from your gross income to show your net pay and effective tax rate.
The formula explained
New Zealand uses a progressive system: only the portion of income that falls inside each bracket is taxed at that bracket's rate. The 2024/25 rates are 10.5% on income up to $15,600, 17.5% from $15,600 to $53,500, 30% from $53,500 to $78,100, 33% from $78,100 to $180,000, and 39% above $180,000. The ACC Earners' Levy of 1.60% applies to liable earnings up to $142,283.
$$\text{Net} = \text{Income} - (\text{Tax} + \text{ACC})$$ $$\text{where}\quad \left\{ \begin{aligned} \text{Tax} &= \text{progressive brackets: } 10.5\%,\,17.5\%,\,30\%,\,33\%,\,39\% \\ \text{ACC} &= 1.6\% \times \min(\text{Income},\,142283) \end{aligned} \right.$$
Worked example
On a $70,000 salary: the first $15,600 is taxed at 10.5% = $1,638; the next $37,900 ($15,600–$53,500) at 17.5% = $6,632.50; the remaining $16,500 ($53,500–$70,000) at 30% = $4,950. Income tax totals $13,220.50. ACC levy is \($70{,}000 \times 1.6\% = $1{,}120\). Total deductions are $14,340.50, leaving a net income of $55,659.50.
$$15{,}600 \times 10.5\% = 1{,}638$$ $$37{,}900 \times 17.5\% = 6{,}632.50$$ $$16{,}500 \times 30\% = 4{,}950$$ $$\text{Tax} = 1{,}638 + 6{,}632.50 + 4{,}950 = 13{,}220.50$$ $$\text{ACC} = 70{,}000 \times 1.6\% = 1{,}120$$ $$\text{Net} = 70{,}000 - (13{,}220.50 + 1{,}120) = 55{,}659.50$$
FAQ
Is the ACC levy part of income tax? No — it is a separate compulsory levy collected through PAYE that funds accident cover, but it reduces your take-home pay so we include it.
Does this include student loan or KiwiSaver? No. Those are separate deductions and are not modelled here.
Which tax year does it use? The 2024/25 composite annual rates, which already blend the mid-year 2024 rate change into single annual thresholds.
