NZ Tax Rates and Tax Brackets 2025-26 & 2026-27
All current New Zealand tax rates, tax brackets, and PAYE-related thresholds for the 2026-27 tax year (1 April 2026 – 31 March 2027), with 2025-26 figures alongside where they differ.
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 2026 to 31 March 2027, the income tax rates and thresholds are unchanged from 2025-26, while some separate payroll deductions have year-specific settings.
- 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 brackets apply for both the 2025-26 and 2026-27 tax years (no rate or threshold change announced for 2026-27). The 2024-25 year used blended thresholds ($14,000/$15,600/$48,000) 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 |
|---|---|---|---|
| 2026-27 | 1.75% | $156,641 | $2,741.22 |
| 2025-26 | 1.67% | $152,790 | $2,551.59 |
| 2024-25 | 1.60% | $142,283 | $2,276.52 |
KiwiSaver Contribution Rates
| Type | Rate |
|---|---|
| Employee contribution | 3%, 3.5%, 4%, 6%, 8%, or 10% |
| Employer minimum (2025-26) | 3.00% |
| Employer minimum (2026-27, from 1 Apr 2026) | 3.50% |
The 3.5% employee rate became the default on 1 April 2026; 3% remains available as a temporary rate reduction of 3 to 12 months. Calculate your KiwiSaver contributions →
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 August 2026. Rates sourced from IRD.
Frequently asked questions
What are the NZ tax brackets in 2026?
The same brackets apply whichever 2026 you mean: 10.5% on $0 – $15,600, 17.5% on $15,601 – $53,500, 30% on $53,501 – $78,100, 33% on $78,101 – $180,000, and 39% on $180,001+. Inland Revenue names a tax year by the year it ends in, so IRD's "2026 tax year" runs 1 April 2025 to 31 March 2026 — this site's 2025-26 year. The year that starts in 2026 (1 April 2026 to 31 March 2027, this site's 2026-27 year) has unchanged rates and thresholds: 10.5% on $0 – $15,600, 17.5% on $15,601 – $53,500, 30% on $53,501 – $78,100, 33% on $78,101 – $180,000, and 39% on $180,001+. Source: IRD tax rates for individuals.
What are the NZ income tax rates for 2025-26?
For the 2025-26 NZ tax year, the resident income tax rates are 10.5% on $0 – $15,600, 17.5% on $15,601 – $53,500, 30% on $53,501 – $78,100, 33% on $78,101 – $180,000, and 39% on $180,001+. The same thresholds carry over to 2026-27. Source: IRD tax rates for individuals.
What is the ACC earner's levy for 2025-26 and 2026-27?
The 2025-26 ACC earner's levy is 1.67% on earnings up to $152,790, giving a maximum annual levy of $2,551.59. From 1 April 2026 the 2026-27 rate is 1.75% on earnings up to $156,641, a maximum of $2,741.22. Source: ACC earner levy rates.
What is the student loan repayment threshold for 2025-26?
The annual student loan repayment threshold is $24,128 for 2025-26 and is unchanged for 2026-27. Repayments are charged at 12% on income above that amount. Source: IRD student loan repayment threshold.
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. Someone on $60,000 pays 10.5% on the first $15,600, not 30% on the lot.
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, with the 2026-27 year (1 April 2026 to 31 March 2027) shown alongside where the figures differ. NZ tax years always run 1 April to 31 March.
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 calculated independently and shown as separate lines on your payslip.
What KiwiSaver contribution rates can I choose?
Employees can contribute 3%, 3.5%, 4%, 6%, 8%, or 10% of gross pay. From 1 April 2026 the default rate is 3.5% and the employer minimum matches it at 3.5%, up from 3% in 2025-26. The 3% rate remains available as a temporary rate reduction of 3 to 12 months.