Income tax calculator NZ 2026/27
Last verified · Methodology
This income tax calculator for NZ works out the tax on a full year's income from 1 April 2026 to 31 March 2027, band by band. It adds the independent earner tax credit if you qualify, shows the ACC earners' levy, and gives your effective and marginal tax rates.
Your income for the year
Your tax for 2026/27
Income tax after credits
$14,720.50
Effective rate 19.6%
Left after tax, levy and loan
$58,967
| Income band | Rate | Tax |
|---|---|---|
| $0 to $15,600 | 10.5% | $1,638.00 |
| $15,601 to $53,500 | 17.5% | $6,632.50 |
| $53,501 to $78,100 | 30% | $6,450.00 |
| $78,101 to $180,000 | 33% | $0.00 |
| Over $180,000 | 39% | $0.00 |
Covers New Zealand tax residents for the year from 1 April 2026. Does not include Working for Families, other tax credits, KiwiSaver or rebates for donations.
| Income | Income tax | IETC | ACC levy | Effective tax rate | After tax and levy |
|---|---|---|---|---|---|
| $20,000 | $2,408.00 | - | $350.00 | 12% | $17,242 |
| $35,000 | $5,033.00 | $520.00 | $612.50 | 12.9% | $29,875 |
| $50,000 | $7,658.00 | $520.00 | $875.00 | 14.3% | $41,987 |
| $65,000 | $11,720.50 | $520.00 | $1,137.50 | 17.2% | $52,662 |
| $80,000 | $16,277.50 | - | $1,400.00 | 20.3% | $62,323 |
| $100,000 | $22,877.50 | - | $1,750.00 | 22.9% | $75,373 |
| $150,000 | $39,377.50 | - | $2,625.00 | 26.3% | $107,998 |
| $200,000 | $57,077.50 | - | $2,741.22 | 28.5% | $140,181 |
How New Zealand income tax works
New Zealand uses five tax bands, and each rate only applies to the slice of income inside its band. Earning a dollar more never pushes your whole income into a higher rate. There is no tax-free threshold: the first $15,600 is taxed at 10.5%.
| Income band | Rate | Tax on a full band |
|---|---|---|
| $0 to $15,600 | 10.5% | $1,638.00 |
| $15,601 to $53,500 | 17.5% | $6,632.50 |
| $53,501 to $78,100 | 30% | $7,380.00 |
| $78,101 to $180,000 | 33% | $33,627.00 |
| Over $180,000 | 39% | - |
These bands took effect on 31 July 2024 and have applied for whole tax years since 1 April 2025, so 2026/27 is the second full year on them. On $100,000 the tax is $22,877.50 (22.9% effective); on $200,000 it is $57,077.50 (28.5%).
The independent earner tax credit
The IETC is worth $10 a week, $520 a year, if your income is between $24,000 and $66,000. Above $66,000 it reduces by 13 cents for every extra dollar and disappears at $70,000. On $50,000 the full credit cuts income tax from $7,658.00 to $7,138.00. On $68,000 the credit is $260.00, so tax falls from $12,620.50 to $12,360.50.
You cannot get the IETC if you or your partner receive Working for Families, or if you receive an income-tested benefit, NZ Super, a Veteran's Pension or an overseas equivalent. Employees can take it each payday by using tax code ME; the PAYE calculator shows the difference per pay. Otherwise IRD adds it when it squares up your year.
Effective rate, marginal rate and ACC
Your effective rate is total income tax divided by total income. Your marginal rate is the rate on your next dollar. On $75,000 the effective rate is 19.6% but the marginal rate is 30%, which is what a pay rise or extra hours is taxed at.
The ACC earners' levy is separate from income tax: 1.75% of earnings, stopping at $156,641. Student loan repayments are separate again, at 12% of income over the threshold; the student loan repayment calculator shows those in detail. This calculator assumes you are a New Zealand tax resident and does not cover Working for Families, donations tax credits or tax on investment income taxed at a prescribed investor rate.
Second jobs and secondary tax codes
Only one job can use a main code. Every other job goes on a secondary code, which takes one flat rate from the first dollar. You choose the code from your estimated total income from all sources for the year, not from what the second job pays on its own:
| Total income from all jobs | Code | Deducted incl. ACC levy |
|---|---|---|
| $0 to $15,600 | SB | 12.25% |
| $15,601 to $53,500 | S | 19.25% |
| $53,501 to $78,100 | SH | 31.75% |
| $78,101 to $180,000 | ST | 34.75% |
| Over $180,000 | SA | 40.75% |
Say your main job pays $60,000 and a weekend job $20,000. Total income is $80,000, so the weekend job goes on ST and about $6,950 is deducted over the year. The tax and levy actually owed on that extra $20,000 is $6,407, because most of it falls in the 30% band, not the 33% that ST assumes. You get roughly $543 back after 31 March.
The costly mistake runs the other way. Put the same job on code S, which suits a total income up to $53,500, and only about $3,850 is deducted, leaving a bill of around $2,557. If neither code fits well, IRD can issue a tailored tax code for the second job; you apply for one each tax year.
What a pay rise is worth
A rise from $75,000 to $80,000 adds $5,000 before tax. Income tax goes up by $1,557.00 and the ACC levy by $87.50, so you keep $3,355.50. Part of the rise is taxed at 30% and the part above $78,100 at 33%.
Inside the IETC range the sums are kinder. Going from $40,000 to $45,000 with the credit, income tax after the credit rises by $875.00, and you keep $4,037.50 of the extra $5,000 after the ACC levy. Between $66,000 and $70,000 the credit shrinks as you earn more, which works like an extra 13 cents of tax on each dollar in that range.
For the year from 1 April 2026: 10.5% on income up to $15,600, 17.5% from $15,601 to $53,500, 30% from $53,501 to $78,100, 33% from $78,101 to $180,000, and 39% over $180,000. These are the same bands that applied in 2025/26.
Income tax on $75,000 is $14,720.50, an effective rate of 19.6%. The ACC earners' levy adds $1,312.50. At this income you are past the independent earner tax credit range, so no credit applies.
New Zealand tax residents with income between $24,000 and $70,000 who do not receive Working for Families, an income-tested benefit, NZ Super, a Veteran's Pension or an overseas equivalent. It is $520 a year up to $66,000, then falls by 13 cents per dollar until it reaches nil at $70,000.
No. Unlike Australia, New Zealand taxes income from the first dollar, at 10.5% up to $15,600.
It shows it separately. The levy is 1.75% of earnings up to $156,641, so the most anyone pays is $2,741.22. Employees pay it through PAYE; it is not income tax and is not shown in the effective tax rate.