NZ Pathway
Guides
Take-Home Pay in New Zealand: Tax, ACC Levy and a Worked Example
Updated: 2026-08-03 · Data verified: 2026-08-03
A salary offer in New Zealand is a gross number. What lands in your account depends on three deductions: income tax (PAYE), the ACC earners’ levy, and — optionally — KiwiSaver. Here is exactly how they work, with numbers you can verify.
Income tax brackets (from 1 April 2025)
New Zealand uses progressive brackets with no tax-free threshold:
| Annual income | Tax rate |
|---|---|
| $0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| $180,001+ | 39% |
The ACC earners’ levy
On top of income tax, employees pay the ACC earners’ levy: 1.67% of earnings (2025–26), capped at $152,790 of earnings — a maximum of $2,551.59 per year. It funds New Zealand’s no-fault accident cover and is deducted automatically with your PAYE. It rises to 1.75% in April 2026–27 — worth remembering that levy rates adjust annually.
Worked example: the median-wage job
Take a full-time job at exactly the immigration median wage: $35.00/hour × 40 hours × 52 weeks = $72,800 gross.
| Deduction | Calculation | Amount |
|---|---|---|
| Tax: first $15,600 @ 10.5% | $1,638.00 | |
| Tax: $15,600–$53,500 @ 17.5% | $37,900 × 17.5% | $6,632.50 |
| Tax: $53,500–$72,800 @ 30% | $19,300 × 30% | $5,790.00 |
| Total income tax | $14,060.50 | |
| ACC levy | $72,800 × 1.67% | $1,215.76 |
| Net annual pay | $57,523.74 |
That is roughly $4,794 per month or $1,106 per week in hand — an effective total deduction of about 21%. Opt into KiwiSaver at the default 3% and take-home drops by another ~$2,184/year (in exchange for retirement savings plus the employer’s matching 3% on top of your gross).
Quick reference: effective deductions by salary
| Gross salary | Tax + ACC | Monthly take-home (approx.) |
|---|---|---|
| $52,000 | ~19% | ~$3,510 |
| $72,800 (median-wage job) | ~21% | ~$4,794 |
| $109,200 (1.5× job) | ~26% | ~$6,740 |
| $145,600 (2× job) | ~29% | ~$8,600 |
(Computed from the 2025–26 brackets and 1.67% levy, before KiwiSaver.)
For newcomers: three things to know
- Your IRD number — apply for one as soon as you arrive. Without it, your employer must deduct tax at the highest “no-declaration” rate.
- Transitional resident exemption — new migrants are usually exempt from NZ tax on most foreign-sourced income for their first ~4 years. Relevant if you keep overseas investments or rental income.
- Tax year and refunds — NZ’s tax year ends 31 March. Many PAYE employees get automatic square-ups; check your myIR account rather than assuming you owe or are owed nothing.
Frequently asked questions
- What are New Zealand's income tax rates for 2025–26?
- From 1 April 2025: 10.5% up to $15,600; 17.5% to $53,500; 30% to $78,100; 33% to $180,000; 39% above that. NZ has no tax-free threshold — the first dollar is taxed at 10.5%.
- What is the ACC earners' levy?
- A levy funding accident compensation, charged at 1.67% of your earnings in 2025–26, capped at $152,790 of earnings (maximum $2,551.59). It is deducted alongside PAYE and is easy to overlook when comparing salaries internationally.
- Does NZ tax my worldwide income?
- Once you are a NZ tax resident, yes — but new migrants may qualify for a 4-year temporary tax exemption on most foreign income (transitional resident rules). Get advice for your situation.
- How much is KiwiSaver?
- Employee contributions are 3%, 4%, 6%, 8% or 10% of gross pay (default 3%), with a mandatory employer contribution on top (minimum 3%). You can opt out in the first weeks of a new job.