New Zealand Salary After Tax Calculator 2025-26 | Take Home Pay Calculator NZD

  • Adam
  • November 2, 2025

Calculate your salary after tax in New Zealand for 2025-26. Free take-home pay calculator with income tax, ACC levy, KiwiSaver & student loan deductions. Accurate IRD rates.

New Zealand Salary After Tax Calculator 2025-26

Calculate your take-home pay in New Zealand for the 2025-26 tax year. This comprehensive salary after tax calculator helps you determine your net income after income tax, ACC levy, and KiwiSaver contributions. Get accurate results based on the latest Inland Revenue (IRD) tax rates and deduction thresholds.

Salary After Tax Calculator

How to Use This Calculator

1 Enter Your Annual Gross Salary: Input your total annual income before any deductions in New Zealand dollars.
2 Select Your KiwiSaver Contribution Rate: Choose your employee contribution rate. The default is 3%, but you can opt for higher rates (4%, 6%, 8%, or 10%).
3 Indicate Student Loan Status: Check if you have an active student loan and enter your estimated annual repayment amount if applicable.
4 Select Your Pay Period: Choose how frequently you receive payment (annual, monthly, fortnightly, or weekly).
5 Click Calculate: Press the "Calculate Take-Home Pay" button to see your detailed breakdown of income tax, ACC levy, KiwiSaver, student loan deductions, and net income.

Understanding New Zealand Income Tax 2025-26

New Zealand uses a progressive tax system where your income is taxed at different rates depending on which tax bracket you fall into. The Inland Revenue (IRD) administers the tax system. Additionally, all earners pay an ACC (Accident Compensation Corporation) levy, and most employees are enrolled in KiwiSaver, the mandatory retirement savings scheme.

2025-26 Income Tax Brackets (From 1 April 2025)

The IRD has set the following tax brackets for the 2025-26 tax year (April 1, 2025 to March 31, 2026). New Zealand uses a progressive tax system where different portions of your income are taxed at different rates:

2025-26 PAYE Tax Rates
• 10.5% on income from $0 to $15,600
• 17.5% on income from $15,601 to $53,500
• 30% on income from $53,501 to $78,100
• 33% on income from $78,101 to $180,000
• 39% on income over $180,000

Unlike some countries, New Zealand has no personal income tax-free threshold. Tax is applied from the first dollar of income, starting at 10.5% for the first bracket. The calculator includes all income in the appropriate brackets.

Progressive Tax Calculation Example

Your taxable income is divided into brackets, and each portion is taxed at its respective rate. For example, if you earn $75,000:

Example Tax Calculation
Income: $75,000

Bracket 1 (10.5%): $15,600 × 0.105 = $1,638.00
Bracket 2 (17.5%): ($53,500 - $15,600) × 0.175 = $6,633.00
Bracket 3 (30%): ($75,000 - $53,500) × 0.30 = $6,450.00

Total Tax: $1,638 + $6,633 + $6,450 = \( \$14,721 \)

ACC Levy 2025-26

The ACC (Accident Compensation Corporation) Earners' Levy is a mandatory workplace injury insurance premium. From April 1, 2025, the levy rate is $1.67 per $100 of earnings. The levy applies up to a maximum income threshold of $152,790.

ACC Levy Calculation
Rate: $1.67 per $100 of earnings (1.67%)
Maximum income liable for levy: $152,790
Maximum annual levy: $2,551.59

\( \text{ACC Levy} = \min(\text{Salary}, 152,790) \times 0.0167 \)

Note: Once your earnings reach $152,790, you pay the maximum levy for the year.

KiwiSaver Contributions 2025-26

KiwiSaver is New Zealand's mandatory retirement savings scheme for employees. The default employee contribution rate is currently 3%, with options to contribute 4%, 6%, 8%, or 10%. Your employer must also contribute at least 3% (matching your contribution rate up to 4%).

KiwiSaver Contribution Formula
Current rates (until 31 March 2026):
Default employee rate: 3%
Employer matching: 3% (or equivalent to your rate if higher, up to 4%)

Future changes (from 1 April 2026):
Default employee rate: 3.5%
Further increase to 4% from 1 April 2028

Formula: \( \text{KiwiSaver} = \text{Salary} \times \text{Chosen Rate \%} \)

Government Contribution (from 1 July 2025):
Changed to 25 cents per $1 contributed (was 50 cents)
Maximum: $260.72 per year (requires $1,042.86 annual contribution)
Income limit: Not eligible if earning over $180,000

Student Loan Repayments

Student Loan Repayments are deducted from your salary if you have an active student loan. The standard repayment rate is typically 10% of income above $19,084 per annum, though this varies based on individual circumstances. Repayments are deducted through PAYE (Pay As You Earn).

Student Loan Repayment Structure
Standard repayment threshold: $19,084 per annum
Standard repayment rate: 10% of income above threshold
Maximum rate: 15% (for some borrowers)

Example: Income of $50,000
Repayable amount: ($50,000 - $19,084) × 0.10 = $3,091.60

Note: Interest accrues at 7% per annum on outstanding student loan balances (deferred for overseas borrowers).

Take-Home Pay Calculation Method

Your net income or take-home pay is calculated by subtracting all deductions from your gross salary:

Net Income Formula
\( \text{Net Income} = \text{Gross Salary} - \text{Income Tax} - \text{ACC Levy} - \text{KiwiSaver} - \text{Student Loan} \)

Where:
• Gross Salary = Your total annual income
• Income Tax = Tax based on your bracket after progressive calculation
• ACC Levy = 1.67% of salary up to $152,790
• KiwiSaver = Your chosen percentage (3%-10%)
• Student Loan = Repayment amount if applicable (typically 10% of income above $19,084)

Effective Tax Rate

Your effective tax rate is your total tax and levies paid divided by your total income. This is lower than your marginal tax rate (the rate applied to your last dollar of income) due to the progressive nature of the New Zealand tax system:

Tax Rate Formulas
\( \text{Effective Tax Rate} = \frac{\text{Total Tax Paid}}{\text{Gross Income}} \times 100\% \)

\( \text{Marginal Tax Rate} = \text{Tax Rate at Your Income Level} + \text{ACC Levy Rate} \)

Frequently Asked Questions

What is the difference between gross salary and net salary in New Zealand?
Gross salary is your total income before any deductions, while net salary (take-home pay) is what remains after income tax, ACC levy, KiwiSaver, and any other deductions such as student loans. Your net salary is the actual amount paid to your bank account.
Does New Zealand have a tax-free threshold?
No, New Zealand does not have a personal income tax-free threshold. Tax is applied from the first dollar of income at 10.5% for the first bracket. This differs from countries like Australia, Canada, and the UK which provide tax-free allowances. However, some tax credits and offsets may apply to reduce your tax liability.
What is ACC and why do I pay it?
ACC (Accident Compensation Corporation) is New Zealand's workplace injury insurance scheme. The Earners' Levy you pay (currently $1.67 per $100) provides no-fault personal injury insurance for work-related accidents and injuries. It covers medical costs, rehabilitation, and lost wages due to covered injuries, so you don't need to purchase separate workplace insurance.
What is KiwiSaver and do I have to participate?
KiwiSaver is New Zealand's mandatory retirement savings scheme. If you're a new employee aged 18-65, you're automatically enrolled with a 3% contribution rate unless you opt out within 2 months. You can choose to contribute 4%, 6%, 8%, or 10% if you prefer higher savings. Your employer must also contribute (minimum 3%, up to 4% of your salary).
When do I get the KiwiSaver Government Contribution?
From 1 July 2025, the Government contribution has reduced to 25 cents per $1 you contribute (previously 50 cents). The maximum annual government contribution is now $260.72 (compared to $521.43 previously). To receive this, you must contribute at least $1,042.86 annually. You must also earn under $180,000 to be eligible for the government contribution (from 1 July 2025).
What happens to my KiwiSaver contributions?
Your KiwiSaver contributions are held in a personal investment account managed by your chosen provider. The funds are invested and grow over time with investment returns. You cannot access the money until you reach age 60 or meet qualifying conditions like first home purchase or financial hardship. Your contributions and government contributions are locked in for retirement.
Do I have to repay my student loan?
Yes, if you have a student loan from the Student Loan Company, you must make repayments. The standard repayment rate is 10% of income above $19,084 per annum. Repayments are deducted automatically through PAYE. Interest accrues at 7% per annum on your outstanding balance (except for overseas borrowers). Different repayment arrangements may apply in special circumstances.
How much tax will I pay on a $75,000 salary?
For income of $75,000 in 2025-26: Income tax = $14,721 (calculated across brackets). ACC levy = $1,275 (1.67% of $75,000). KiwiSaver (3%) = $2,250. Total deductions = $18,246. Take-home pay = approximately $56,754 (before any student loan repayments). This is an estimate; actual amounts depend on personal circumstances and ACC maximums.
Can I reduce my taxable income in New Zealand?
Yes, you can reduce your taxable income through tax deductions such as work-related expenses (uniforms, tools, vehicle costs), charitable donations, loss on rental properties, and professional fees. You can also claim tax credits such as the Working for Families tax credits or donations tax credit. Keep detailed records and receipts, as the IRD may request substantiation.
How accurate is this salary calculator?
This calculator provides estimates based on 2025-26 IRD tax brackets, ACC levy rates, and KiwiSaver rates. It does not account for tax deductions, tax credits, special circumstances, or individual variations in student loan repayments. For precise calculations, use the IRD's tax calculator or consult a tax professional.

Official Sources & Important Links

All calculations are based on official 2025-26 rates from Inland Revenue (IRD), ACC, and New Zealand Government:

Additional Resources:

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