Gross Income
Gross income is your total income before any deductions such as PAYE income tax, ACC earner's levy, KiwiSaver contributions, or student loan repayments. Salary packages and job advertisements in New Zealand almost always quote gross (pre-tax) salaries.
Gross income includes all taxable sources: salary and wages, self-employment income, rental income, interest, dividends, and taxable capital gains. For most employees, gross income is the annual salary stated in your employment agreement.
To estimate your take-home pay from a gross salary, you need to subtract income tax, ACC levy (1.75% for 2026-27), your chosen KiwiSaver rate, and any student loan repayment. For example, a $70,000 gross salary yields roughly $55,000–$57,000 in take-home pay, depending on your KiwiSaver rate and student loan status.
How it works
Gross income casts a wide net — it includes salary and wages, self-employment profit, rental income, interest, dividends, and any taxable capital gains such as a bright-line property sale, all added together before anything is deducted. For salary and wage earners, gross income is essentially the figure written into your employment agreement.
It's worth distinguishing gross income from taxable income. For most employees the two are the same, but for self-employed people and property investors, allowable business or rental expenses are subtracted from gross income to arrive at a lower taxable income figure — so gross income is the starting point, not necessarily the number tax is actually calculated on.
Job advertisements, salary negotiations, and employment agreements in New Zealand are almost always quoted in gross terms, which is convenient for comparing offers but doesn't tell you what actually lands in your bank account — for that, you need to work through the deductions to reach your net income.
Example: combining income sources into gross income
If you earn a $50,000 salary and also receive $2,000 in bank interest during the year, your total gross income for tax purposes is $50,000 + $2,000 = $52,000, even though the interest is taxed differently (through RWT) to the salary (through PAYE).
Frequently asked questions
Is gross income the same as taxable income?
Not always — for salary and wage earners the two are usually identical, but self-employed people and property investors can deduct allowable expenses from gross income to arrive at a lower taxable income.
Why do job ads and payslips quote gross salary rather than take-home pay?
It's the standard convention in New Zealand because it's the figure set out in your employment agreement before any tax or other deductions are applied, making it easier to compare roles consistently.
How do I work out my take-home pay from a gross salary figure?
You need to subtract income tax, the ACC earner's levy, any KiwiSaver contribution, and student loan repayments if applicable — a take-home pay calculator does this for you in one step.
Related Terms
Net Income / Take-Home Pay
Net income (or take-home pay) is the amount you actually receive in your bank account after all compulsory and elected deductions have been subtracted from your gross pay.
PAYE
PAYE (Pay As You Earn) is the system that New Zealand employers use to deduct income tax from employees' wages and salaries.
Try the calculator
Use our free tool to see how gross income affects your tax.