Tax rates, 2026-27
NZ tax rates for 2026-27
Income tax bands, the ACC earners' levy, the independent earner tax credit, tax codes, KiwiSaver and student loan rates for the tax year from 1 April 2026 to 31 March 2027.
Income tax rates are unchanged for 2026-27
| Yearly income | Tax rate |
|---|---|
| Up to $15,600 | 10.5% |
| $15,601 to $53,500 | 17.5% |
| $53,501 to $78,100 | 30% |
| $78,101 to $180,000 | 33% |
| Over $180,000 | 39% |
These rates have applied for the full year since 1 April 2025, after the thresholds changed on 31 July 2024. There is no tax-free threshold and no joint assessment: each person is taxed on their own income, from the first dollar. Sources: Inland Revenue: tax rates for individuals; Inland Revenue, Payroll Calculations and Business Rules Specification 2026-27 (version 1.0, 24 March 2026).
The ACC earners' levy is 1.75% up to $156,641
For 2026-27 the levy is $1.75 per $100 of earnings, including GST, on earnings up to $156,641, so the most anyone pays is $2,741.22. In 2025-26 it was $1.67 per $100 on earnings up to $152,790. Your employer collects it with income tax as PAYE. The regulations also set 1.83% and $160,244 for 2027-28, but those could still change before 1 April 2027. Sources: Inland Revenue: ACC earners' levy rates; Accident Compensation (Earners' Levy) Regulations 2025.
PAYE rates on tax code M, with the ACC levy
| Yearly income | Income tax plus ACC levy |
|---|---|
| Up to $15,600 | 12.25% |
| $15,601 to $53,500 | 19.25% |
| $53,501 to $78,100 | 31.75% |
| $78,101 to $156,641 | 34.75% |
| $156,642 to $180,000 | 33% |
| Over $180,000 | 39% |
Above $156,641 no ACC levy is charged on the extra pay, which is why the combined rate drops back to 33% until $180,000. Inland Revenue: tax codes for individuals.
The IETC is worth up to $520 a year
The independent earner tax credit is $10 a week, $520 a year, for yearly income from $24,000 to $66,000. Above $66,000 it falls by 13 cents for each extra dollar and is nothing from $70,000. At $68,000, for example, it is $260.
You get it through your pay by using tax code ME (or ME SL), or after the end of the year. ME is for a main job when your yearly income is between $24,000 and $70,000, you are a New Zealand tax resident, neither you nor your partner gets Working for Families, and you do not get an income-tested benefit (such as a main benefit), NZ Super, a Veteran's Pension or an overseas equivalent. Eligibility is worked out month by month. Sources: Inland Revenue: independent earner tax credit; Inland Revenue: Tax code declaration IR330.
Tax codes for salary and wages
| Code | Used for |
|---|---|
| M | Main job, the highest-paid source of salary or wages |
| ME | Main job, claiming the independent earner tax credit |
| M SL, ME SL | As M or ME, with student loan repayments |
| SB, S, SH, ST, SA | Secondary jobs, a flat rate chosen by your total yearly income: up to $15,600 (SB, 10.5%), $15,601 to $53,500 (S, 17.5%), $53,501 to $78,100 (SH, 30%), $78,101 to $180,000 (ST, 33%), over $180,000 (SA, 39%). Each has an SL version. |
| ND | No tax code declaration: 45% plus the ACC earners' levy |
| NSW, CAE, EDW, STC, WT | Non-resident seasonal workers, casual agricultural workers, election day workers, tailored tax codes and schedular payments |
Your tax code comes from the tax code declaration (IR330) you give your employer. Secondary codes are flat rates with no thresholds. Inland Revenue: tax codes for individuals; Inland Revenue, Payroll Calculations and Business Rules Specification 2026-27 (version 1.0, 24 March 2026).
KiwiSaver, ESCT and student loans
From 1 April 2026 the default employee KiwiSaver rate and the compulsory employer contribution are both 3.5% of gross pay, rising to 4% from 1 April 2028. Employees can choose 4%, 6%, 8% or 10%, or 3% with a temporary rate reduction. Employer contributions pay ESCT at a rate set by your previous year's pay plus employer contributions:
| Last year's pay plus employer contributions | ESCT rate |
|---|---|
| Up to $18,720 | 10.5% |
| $18,721 to $64,200 | 17.5% |
| $64,201 to $93,720 | 30% |
| $93,721 to $216,000 | 33% |
| Over $216,000 | 39% |
Student loan repayments for New Zealand-based borrowers are 12% of pay above $24,128 a year ($464 a week, $928 a fortnight, $2,010.66 a month). Sources: Inland Revenue: KiwiSaver changes; Inland Revenue: employer contributions to KiwiSaver; Inland Revenue: repaying your student loan from salary or wages; Inland Revenue, Payroll Calculations and Business Rules Specification 2026-27 (version 1.0, 24 March 2026).
Take-home pay on six salaries
| Salary | Tax code | Income tax | ACC levy | Student loan | KiwiSaver | Take-home a year | A fortnight |
|---|---|---|---|---|---|---|---|
| $50,000 | M | $7,658.00 | $875.00 | – | $1,750.00 | $39,717.00 | $1,527.58 |
| $70,000 | M | $13,220.50 | $1,225.00 | – | $2,450.00 | $53,104.50 | $2,042.48 |
| $85,000 | M SL | $17,927.50 | $1,487.50 | $7,304.64 | $2,975.00 | $55,305.36 | $2,127.13 |
| $120,000 | M | $29,477.50 | $2,100.00 | – | $4,200.00 | $84,222.50 | $3,239.33 |
| $180,000 | M | $49,277.50 | $2,741.22 | – | $6,300.00 | $121,681.28 | $4,680.05 |
| $70,000 | ME, KiwiSaver 4% | $13,220.50 | $1,225.00 | – | $2,800.00 | $52,754.50 | $2,029.02 |
KiwiSaver at 3.5% unless shown. At exactly $70,000 the IETC is nil, so ME gives the same tax as M. Work out your own pay.
These figures are estimates based on the information you entered and the 2026-27 rules published by Inland Revenue for PAYE, the ACC earners' levy, KiwiSaver and student loans. They are general information, not tax, financial or legal advice. Your actual pay can differ, for example because of your tax code, how your employer runs payroll, extra pays such as bonuses, your ESCT rate or other deductions. Check your payslip, or ask your employer or Inland Revenue, before relying on these figures.