NZ Tax Rates and Tax Brackets 2025-26 & 2026-27
All current New Zealand tax rates, tax brackets, and PAYE-related thresholds for the 2025-26 tax year (1 April 2025 – 31 March 2026), with 2026-27 context where it helps.
Quick answer
New Zealand uses progressive income tax, so each rate applies only to the slice of income inside that band. For the tax year running from 1 April 2025 to 31 March 2026, the key changes versus 2024-25 are wider lower and middle brackets and a higher ACC levy cap.
- There is no tax-free threshold in New Zealand.
- PAYE uses these same brackets for salary and wages.
- If you want your actual deduction, use the Income Tax Calculator or PAYE Calculator.
Income Tax Brackets
New Zealand uses a progressive tax system with no personal allowance — tax applies from the first dollar.
| Income Range | Rate | Tax on Band | Cumulative Tax |
|---|---|---|---|
| $0 – $15,600 | 10.5% | $1,638 | $1,638 |
| $15,601 – $53,500 | 17.5% | $6,632.50 | $8,270.50 |
| $53,501 – $78,100 | 30% | $7,380 | $15,650.50 |
| $78,101 – $180,000 | 33% | $33,627 | $49,277.50 |
| $180,001+ | 39% | — | — |
These are the full-year 2025-26 brackets. The 2024-25 year used blended thresholds ($14,530/$49,883/$72,743) due to a mid-year rate change on 31 July 2024. Calculate your income tax →
ACC Earner's Levy
| Tax Year | Rate | Cap | Maximum Levy |
|---|---|---|---|
| 2025-26 | 1.67% | $152,790 | $2,551.59 |
| 2024-25 | 1.60% | $139,384 | $2,230.14 |
KiwiSaver Contribution Rates
| Type | Rate |
|---|---|
| Employee contribution | 3%, 4%, 6%, 8%, or 10% |
| Employer contribution (minimum) | 3% |
Student Loan Repayment
| Detail | Amount |
|---|---|
| Repayment rate | 12% |
| Annual threshold | $24,128 |
| Interest (NZ-based) | 0% |
GST
| Detail | Amount |
|---|---|
| Standard rate | 15% |
| Registration threshold | $60,000/year |
Independent Earner Tax Credit (IETC)
| Income Range | Annual Credit |
|---|---|
| Below $24,000 | $0 |
| $24,000 – $66,000 | $520 (full) |
| $66,001 – $70,000 | $520 → $0 (abates 13c/$1) |
| Over $70,000 | $0 |
Bright-Line Property Test
| Purchase Date | Bright-Line Period |
|---|---|
| On or after 1 July 2024 | 2 years |
| 27 March 2021 – 30 June 2024 | 10 years |
| 29 March 2018 – 26 March 2021 | 5 years |
| 1 October 2015 – 28 March 2018 | 2 years |
Calculate Your Tax
Use our free calculators to see exactly how these rates affect your pay.
Sources
Last updated March 2026. Rates sourced from IRD.
Frequently asked questions
Do NZ tax rates apply to your whole salary?
No. NZ tax is progressive, so each rate only applies to the part of your income that falls inside that bracket.
What tax year do these rates apply to?
These rates apply to the New Zealand tax year from 1 April 2025 to 31 March 2026.
Are ACC levy and student loan part of income tax?
No. PAYE withholding can include income tax, ACC earner's levy, KiwiSaver, and student loan deductions, but they are separate amounts.