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. This is the money you have available to spend, save, or invest.
Deductions that reduce gross pay to net pay include: PAYE income tax (progressive rates from 10.5% to 39%), ACC earner's levy (1.75% up to a $156,641 cap for 2026-27), KiwiSaver contributions (3.5%–10% if enrolled, with a temporary 3% option), and student loan repayments (12% above $24,128 if applicable).
Your net pay can vary between pay periods if you receive bonuses, overtime, or back-pay — these can temporarily push you into a higher PAYE bracket for that period. To get an accurate picture of your annual take-home pay, use a calculator that accounts for all deductions across the full year.
How it works
Net income is what's left after every applicable deduction has come out of your gross pay — income tax through PAYE, the ACC earner's levy, your chosen KiwiSaver contribution rate if you're enrolled, and student loan repayments if your income is above the threshold. These deductions are calculated together on each payslip, so the net figure you see already accounts for all of them.
Net pay isn't always perfectly steady from one pay period to the next. A bonus, overtime, or back-pay in a single period can temporarily push that period's income into a higher tax bracket, reducing net pay for that pay run even though your annual tax position evens out once IRD reconciles everything after the tax year ends.
Because net income reflects what actually reaches your bank account, it's the more useful figure for budgeting, applying for a loan, or comparing job offers with different KiwiSaver or student loan situations — gross salary alone can be misleading once these deductions are taken into account.
Example: net pay on a $60,000 salary with KiwiSaver
On a $60,000 salary for 2026-27, income tax works out to $1,638 + $6,632.50 + $1,950 = $10,220.50 across the three brackets it spans.
Adding the ACC earner's levy at 1.75% ($1,050) and a 3% KiwiSaver contribution ($1,800) brings total deductions to $13,070.50, leaving net income of $60,000 − $13,070.50 = $46,929.50 for the year.
Frequently asked questions
Why did my take-home pay drop even though my salary didn't change?
A one-off bonus, overtime, or back-pay in that pay period can temporarily push you into a higher tax bracket for that pay run, reducing net pay even though your annual tax position balances out later.
Is net income the same as disposable income?
They're closely related but not identical — net income is your pay after tax and compulsory deductions, while disposable income can also account for other regular commitments like rent or debt repayments.
Does net income already have KiwiSaver taken out?
Yes — if you're enrolled in KiwiSaver, your own contribution is deducted before you reach your net pay figure, alongside income tax, ACC levy, and any student loan repayment.
Related Terms
Try the calculator
Use our free tool to see how net income / take-home pay affects your tax.