Tax, ACC and GST

What is the ACC earners' levy?

Last verified · Methodology

What it means

ACC (the Accident Compensation Corporation) covers everyone in New Zealand for injuries, whoever is at fault. Employees fund the part that covers injuries outside work through the earners' levy, which is collected with PAYE. Employers pay a separate work levy for workplace injuries.

For the year from 1 April 2026 the levy is 1.75% of liable earnings, including GST. It stops at the maximum liable earnings of $156,641, so nobody pays more than $2,741.22 a year. Self-employed people pay their levies through an ACC invoice instead.

How it is worked out

Levy = earnings x 1.75%, capped at $2,741.22

Example

On a salary of $60,000 the earners' levy is $1,050.00 for the year. Anyone earning $156,641 or more pays $2,741.22.

Run the numbers

Open the PAYE calculator

Related terms

PAYE (Pay As You Earn)PAYE is the income tax and ACC earners' levy your employer takes out of each pay and sends to Inland Revenue, based on the tax code you give them.Tax code MTax code M is the main tax code for your only or highest-paying job. ME adds the independent earner tax credit, and SL adds student loan deductions.Independent earner tax credit (IETC)The independent earner tax credit is worth up to $520 a year for people earning $24,000 to $70,000 who get no Working for Families or NZ Super.
ACC earners' levy: common questions

The ACC earners' levy funds cover for injuries outside work. For 2026/27 it is $1.75 per $100 of earnings, up to $156,641.

Yes. For 2026/27 the levy stops at earnings of $156,641, so the most anyone pays is $2,741.22 for the year.

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