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What is the ACC earner's levy?

The ACC earner's levy is 1.60% of your earnings, capped at $152,790 for the 2025/26 year. This means the maximum ACC levy is approximately $2,444.64 per year. It is deducted automatically from your pay alongside PAYE.

How is PAYE calculated?

PAYE is calculated using progressive tax brackets. Each portion of your income that falls within a bracket is taxed at that bracket's rate. For example, if you earn $60,000, the first $15,600 is taxed at 10.5%, the next $37,900 (from $15,601 to $53,500) at 17.5%, and the remaining $6,500 at 30%.

What is an effective tax rate?

Your effective tax rate is the total tax you pay as a percentage of your total income. Because New Zealand uses progressive brackets, your effective rate is always lower than your top marginal rate.

Does this calculator include KiwiSaver deductions?

No, this calculator shows PAYE and ACC only. KiwiSaver contributions (typically 3% of your salary) are deducted separately. Use our KiwiSaver Calculator to see your contribution amounts.

Are student loan repayments included?

No. Student loan deductions (12% of income above the repayment threshold) are separate from PAYE. This calculator shows tax and ACC only.

Business Tools/PAYE Calculator

2025/26 Tax Year · PAYE + ACC

PAYE Calculator

Calculate your take-home pay after PAYE income tax and ACC earner's levy. Uses the latest 2025/26 New Zealand tax brackets.

PAYE Calculator

2025/26 tax year

Annual income (before tax)

PAYE income tax

$0.00

ACC earner's levy (1.67%)

$0.00

Total deductions

$0.00

Annual take-home pay

$0.00

Rates valid for 2025/26 tax year · Last reviewed August 2025

IRD — Tax rates for individuals

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How PAYE works in New Zealand

Pay As You Earn (PAYE) is the system by which New Zealand employers deduct income tax from their employees' wages or salary before paying them. The tax is calculated using progressive tax brackets — the more you earn, the higher the rate on each portion of income.

For the 2025/26 tax year, the brackets are: 10.5% up to $15,600, 17.5% from $15,601 to $53,500, 30% from $53,501 to $95,000, 33% from $95,001 to $160,000, and 39% above $160,000.

In addition to PAYE, most earners pay the ACC earner's levy of 1.60% on earnings up to $152,790. This covers you for accidental injury through ACC's CoverPlus scheme.

This calculator shows your annual PAYE, ACC levy, total deductions, and take-home pay. The effective tax rate shows what percentage of your income goes to tax and ACC combined.

PAYE Calculator frequently asked questions

The 2025/26 tax brackets are: 10.5% on income up to $15,600, 17.5% from $15,601 to $53,500, 30% from $53,501 to $95,000, 33% from $95,001 to $160,000, and 39% on income above $160,000.