ACC Levy Explained: What NZ Workers Pay and Why
A full explanation of the ACC earner's levy — what it is, how it's calculated, the 2025-26 rate and cap, and how it appears on your payslip.
Published 20 January 2026
Every working New Zealander pays an ACC earner’s levy deducted automatically from their pay. But what is it, and why do you pay it?
What is ACC?
The Accident Compensation Corporation (ACC) provides comprehensive, no-fault personal injury cover for all New Zealanders and visitors. If you’re injured in an accident — at work, at home, or on the road — ACC covers medical treatment, rehabilitation, and lost income.
Unlike many countries where you’d rely on private insurance or face legal costs, NZ’s ACC scheme provides no-fault cover funded by levies, meaning you don’t need to sue to receive compensation.
The Earner’s Levy
The earner’s levy is the portion of ACC funding paid by employees. It covers injuries that happen outside of work (work-related injuries are funded by a separate employer levy).
2025-26 Rates
| Detail | 2025-26 | 2024-25 |
|---|---|---|
| Rate | 1.60% | 1.60% |
| Maximum income | $142,283 | $139,384 |
| Maximum levy | $2,276.53 | $2,230.14 |
The rate has remained steady at 1.60% for several years. The cap increases each year roughly in line with wage growth.
How it’s Calculated
The levy is simple: 1.60% × levyable income (up to the cap).
Example: $80,000 salary
- $80,000 × 1.60% = $1,280 per year
- Monthly: $106.67 | Weekly: $24.62
Example: $200,000 salary
- Only $142,283 is subject to levy
- $142,283 × 1.60% = $2,276.53 per year (maximum)
On Your Payslip
The levy appears as “ACC earner levy” on your payslip, deducted alongside PAYE income tax. Both are remitted to IRD on your behalf by your employer.
Self-Employed Workers
If you’re self-employed, you pay both the earner’s levy and a work levy. The work levy rate depends on your industry and risk classification. IRD collects it as part of your provisional or terminal tax payments.
Use our ACC Levy Calculator to see exactly what you’ll pay.