New Zealand PAYE Tax Rates 2026–27
New Zealand PAYE combines two deductions into one figure: income tax at 10.5% to 39%, and the ACC earners' levy of 1.75%. The combined PAYE rate is 12.25% on the first $15,600, 19.25% to $53,500, 31.75% to $78,100, 34.75% to $156,641, then 33%, then 39%.
NZ PAYE tax rates
The fourth column is the number your payroll system actually applies to the next dollar you earn. Inland Revenue publishes the first two columns separately and the third in a different guide. Adding them is what turns three published figures into the one rate that reaches your bank account.
| Taxable income | Income tax | ACC earners' levy | PAYE deducted |
|---|---|---|---|
| $0 – $15,600 | 10.5% | 1.75% | 12.25% |
| $15,601 – $53,500 | 17.5% | 1.75% | 19.25% |
| $53,501 – $78,100 | 30% | 1.75% | 31.75% |
| $78,101 – $156,641 | 33% | 1.75% | 34.75% |
| $156,642 – $180,000 | 33% | 0%cap reached | 33% |
| $180,001 and over | 39% | 0% | 39% |
These are the rates on each slice of income, not on the whole of it. The first $15,600 you earn is charged at 12.25% whatever your salary is. Someone on $80,000 pays an effective PAYE rate of 22.1%, not the 34.75% that applies to their next dollar.
The PAYE rate falls before it rises
New Zealand PAYE is not monotonic. The ACC earners' levy stops at $156,641 of earnings, but income tax does not move to 39% until $180,000. Between those two figures the combined rate is lower than it was on the income just below. Inland Revenue publishes both halves of this, so it is not a loophole and not a rounding artefact. It is what the two rules do when you put them together.
The practical effect is small but real. A pay rise that takes you from $156,641 to $166,641 is taxed at 33% on the extra, not 34.75%, because the levy has finished. The maximum earners' levy anyone pays in 2026–27 is $2,741.22, and every dollar after that is free of it.
What PAYE takes at real salaries
| Salary | PAYE a year | Effective PAYE rate | On your next dollar |
|---|---|---|---|
| $60,000 | $11,270.50 | 18.8% | 31.75% |
| $80,000 | $17,677.50 | 22.1% | 34.75% |
| $120,000 | $31,577.50 | 26.3% | 34.75% |
| $156,641 | $44,310.25 | 28.3% | 33% |
| $200,000 | $59,818.72 | 29.9% | 39% |
Income tax plus the ACC earners' levy, on tax code M with no independent earner tax credit. KiwiSaver and student loan are separate deductions and are not in these figures. take-home pay calculator.
PAYE is not everything on your payslip
PAYE is income tax and the ACC earners' levy, and nothing else. Your KiwiSaver contribution and any student loan repayment are deducted separately and appear on their own lines. ESCT is charged on your employer's contribution and never comes out of your pay. That is why the PAYE rate here and the share of your gross that actually disappears are two different numbers.
People also ask
What is the PAYE rate in NZ?
There is no single PAYE rate. PAYE is income tax plus the ACC earners' levy, so it rises in steps: 12.25% on the first $15,600, 19.25% to $53,500, 31.75% to $78,100 and 34.75% to $156,641. Above $156,641 the levy stops and the rate falls to 33%, then rises to 39% above $180,000.
Is ACC included in PAYE?
Yes. The ACC earners' levy of 1.75% is deducted through PAYE and sits inside the PAYE line on your payslip rather than on a line of its own. It is charged on earnings up to $156,641 a year, so the most anyone pays in 2026–27 is $2,741.22.
Why does my PAYE rate drop above $156,641?
Because the ACC earners' levy is capped. The levy applies to the first $156,641 of earnings and stops there. Income tax stays at 33% until $180,000, so once the levy stops the combined PAYE rate falls from 34.75% to 33%. It rises to 39% on income above $180,000.
What are the PAYE deduction tables?
The PAYE deduction tables are Inland Revenue's published tables showing how much PAYE to deduct from a given amount of weekly, fortnightly, four-weekly or monthly pay on each tax code. They contain the same arithmetic as the rates on this page, worked out per pay period, with the 1.75% ACC earners' levy already inside every figure.
Where these figures come from
- IRD. Tax rates for individuals
- IRD. ACC earners' levy rates
- IRD. Payroll calculations and business rules specification
2026–27 tax year (1 April 2026 – 31 March 2027). Last verified 30 July 2026.
Related
- New Zealand tax bracketsThe income tax scale on its own, without the levy
- ACC earners' levy1.75% up to $156,641, capped at $2,741.22
- New Zealand tax codesThe code on your IR330 decides which rates apply
- what is PAYEWhat the letters stand for, and what they cover
- how to read a New Zealand payslipWhere the PAYE line sits, and what is inside it
- take-home pay calculatorYour own figure, after every deduction