New Zealand Tax Brackets 2026–27
The income tax rates that apply from 1 April 2026 to 31 March 2027, plus the other deductions that come out of a New Zealand pay packet.
Income tax rates
| Taxable income | Rate | Tax on this band |
|---|---|---|
| $0 – $15,600 | 10.5% | $1,638.00 |
| $15,601 – $53,500 | 17.5% | $6,632.50 |
| $53,501 – $78,100 | 30.0% | $7,380.00 |
| $78,101 – $180,000 | 33.0% | $33,627.00 |
| $180,001 and over | 39.0% | - |
These rates are progressive: each one applies only to the slice of income that falls inside its band. Earning one dollar more never reduces your take-home pay.
Payroll never applies these rates on their own. It adds the 1.75% ACC earners' levy to each one and deducts the two as a single figure, so the number withheld from your pay is a PAYE rate rather than an income tax rate. The New Zealand PAYE tax rates table publishes both halves added together, band by band.
What tax looks like at different salaries
| Salary | Income tax | Effective rate | Marginal rate |
|---|---|---|---|
| $45,000 | $6,783.00 | 15.1% | 17.5% |
| $70,000 | $13,220.50 | 18.9% | 30.0% |
| $90,000 | $19,577.50 | 21.8% | 33.0% |
| $120,000 | $29,477.50 | 24.6% | 33.0% |
| $200,000 | $57,077.50 | 28.5% | 39.0% |
Income tax only. Before the ACC earners' levy, KiwiSaver and student loan. For a full picture, use the take-home pay calculator. Notice how the effective rate always sits well below the marginal rate.
Effective tax rate and marginal tax rate
These are two different numbers and confusing them is why a pay rise is so often described as not being worth it.
- Your marginal tax rate is the rate on your next dollar. It is the band your income currently reaches, and it is the highest rate you pay on anything.
- Your effective tax rate is your total income tax divided by your total income. It is what you actually pay, and it is always lower than your marginal rate.
On $90,000 a year the marginal rate is 33.0%, but only the slice of income inside that band is taxed at it. Every band below is taxed at its own rate, and the tax on each one is the same for everybody who reaches it.
| Band | Taxed at | Your income in it | Tax |
|---|---|---|---|
| $0 – $15,600 | 10.5% | $15,600 | $1,638.00 |
| $15,601 – $53,500 | 17.5% | $37,900 | $6,632.50 |
| $53,501 – $78,100 | 30.0% | $24,600 | $7,380.00 |
| $78,101 – $180,000 | 33.0% | $11,900 | $3,927.00 |
The bands add up to $19,577.50 of income tax on $90,000. That is an effective rate of 21.8%, against a marginal rate of 33.0%. The gap between those two numbers is the whole reason moving into a higher band cannot cost you money: the new rate applies only to the income above the threshold, never to the income below it.
Neither rate is what leaves your pay. Your employer withholds income tax and the earners' levy as one figure, and deducts KiwiSaver and any student loan on top, which is the sequence set out in what is PAYE. The brackets themselves are fixed for the year running 1 April to 31 March.
Secondary tax codes
If you have more than one job, income from the second one is taxed at a flat rate. Pick the code that matches your total income from all sources. That is what keeps you from a bill at the end of the year.
| Code | Total income from all sources | Rate |
|---|---|---|
| SB | Total income up to $15,600 | 10.5% |
| S | $15,601 – $53,500 | 17.5% |
| SH | $53,501 – $78,100 | 30.0% |
| ST | $78,101 – $180,000 | 33.0% |
| SA | $180,001 and over | 39.0% |
Rates shown before ACC levies. Which of the five codes you belong on is decided by your total income across every source, which is worked through on secondary tax.
Other deductions
- ACC earners' levy
- 1.75% of earnings, on income up to $156,641. Maximum $2,741.22 a year. Rises to 1.83% in 2027–28.
- Student loan repayments
- 12% of every dollar over $24,128 a year.
- KiwiSaver contribution rates
- 3.5% default employee rate from 1 April 2026 (4%, 6%, 8%, 10% also available, and 3% only under an approved temporary rate reduction). Employers must add at least 3.5%.
When rates last changed
- 31 July 2024, the last change to income tax brackets. The bottom four thresholds rose; the 30% band ceiling moved from $70,000 to $78,100.
- 1 April 2026, ACC earners' levy rose 1.67% → 1.75%, and the default KiwiSaver employee and employer rates rose 3% → 3.5%.
- 1 April 2027, ACC earners' levy is legislated to rise again, to 1.83%.
Sources
- IRD. Tax rates for individuals
- IRD. ACC earners' levy rates
- IRD, Student loan repayments
- IRD. Payroll calculations & business rules
Last verified 30 July 2026.