New Zealand Income Tax Calculator

About the New Zealand Income Tax Calculator

Add up your income for the tax year — salary and wages, self-employed profit, interest and dividends, rental profit and other taxable income — and see the income tax Inland Revenue works out on it: the tax in each band of the individual rates, the independent earner tax credit if you qualify, your effective and marginal rates, and the income left after tax.

It also shows the secondary tax code a second job needs at your total income and the ACC earners’ levy on your wages, which is collected with PAYE but is not income tax. Nothing you type leaves your browser.

The individual tax rates

New Zealand has no tax-free threshold: income is taxed in bands, each part at its own rate (Inland Revenue).

• up to $15,600: 10.5%
• $15,601 to $53,500: 17.5%
• $53,501 to $78,100: 30%
• $78,101 to $180,000: 33%
• over $180,000: 39%

Only the income inside a band is taxed at that band’s rate, so moving into a higher band never lowers your income after tax. In one line, the tax on income x is 17.5% × x − $1,092 from $15,601 to $53,500, 30% × x − $7,779.50 to $78,100, 33% × x − $10,122.50 to $180,000 and 39% × x − $20,922.50 above.

The independent earner tax credit (IETC)

New Zealand tax residents with income between $24,000 and $70,000 get up to $520 a year: the full amount from $24,000 to $66,000, then 13 cents less for each dollar above $66,000. It is not available for any month in which you or your partner get Working for Families, or you get an income-tested benefit, NZ Super, a Veteran’s Pension or an overseas equivalent (IETC). Wage earners can get it with each pay by using tax code ME for their main job; otherwise it comes after the year ends (Inland Revenue).

Secondary tax codes

A second job (or a benefit, pension or other PAYE income besides your main job) uses a secondary code chosen by your estimated total income from all sources: SB up to $15,600, S from $15,601 to $53,500, SH to $78,100, ST to $180,000 and SA above. Each takes one flat rate from that job’s pay — the band your top dollars fall in — so the tax on your total income comes out right (secondary tax codes). The calculator shows the code for the income you enter.

What to include

Taxable income is your income from all sources before tax: salary and wages, self-employed or business profit, interest and dividends (gross — before resident withholding tax, and dividends with their imputation credits), rental profit, overseas income and other taxable income such as a taxable property sale. Income from multi-rate PIE funds, such as most KiwiSaver funds, is taxed at your prescribed investor rate with a separate PIE calculation on your assessment, so it is left out (PIE income). KiwiSaver contributions do not reduce your taxable income.

The ACC earners’ levy — 1.75% of earnings up to $156,641 a year (Inland Revenue) — is collected with PAYE on wages but is a levy, not income tax; self-employed people are invoiced for their ACC levies by ACC.

Limitations

• For individuals who are New Zealand tax residents. Companies, trusts and non-residents are taxed differently.
• Losses are not offset: how a business, rental or land-sale loss can be used depends on its type.
• Other tax credits (such as for donations), Working for Families and the student loan repayment are not included; the student loan has its own calculator.
• The independent earner tax credit assumes you were eligible for the whole year; it is worked out on whole months.
• Tax already paid (PAYE, resident withholding tax, provisional tax) is not deducted: the result is the tax for the year, not a refund or bill.

Privacy

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.