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How we calculate (NZ)

Tax calculators live or die on their numbers. Here is exactly where ours come from, how the maths works, and when each figure was last checked.

Parameters in use — tax year 2026–27

ItemValueSource
Income tax bands10.5% to $15,600 · 17.5% to $53,500 · 30% to $78,100 · 33% to $180,000 · 39% aboveIRD, Tax rates for individuals
ACC earner's levy1.75%, on earnings up to $156,641 (max $2,741.22)IRD, ACC earner's levy rates
KiwiSaver employee rates3.5% (default) / 4% / 6% / 8% / 10% of gross payIRD, KiwiSaver deductions
KiwiSaver employer minimum3.5% of gross pay (ESCT deducted from it)IRD, Employer contributions
Student loan12% of income over $24,128/year ($464/week)IRD, Repaying my student loan
Secondary tax codesSB 10.5% · S 17.5% · SH 30% · ST 33% · SA 39% (by total income)IRD, Tax rates for individuals
IETCUp to $520/year; full amount $24,000–$66,000, abating 13c/$ to $70,000IRD, Independent earner tax credit
Minimum wage (adult)$23.95/hour from 1 April 2026Employment New Zealand
Holiday pay8% pay-as-you-go (restricted cases); leave paid at higher of OWP or AWEEmployment New Zealand, pay-as-you-go · annual holiday pay

Method

Calculations are done on annual income using the band table above, then divided evenly across weeks (52), fortnights (26) or months (12). Employers instead calculate per pay period with IRD's payroll tables and rounding, so a real payslip can differ by a few cents. KiwiSaver is calculated on gross pay and deducted after tax; employer contributions are shown before ESCT. Student loan repayments on a main job use the annual threshold; on secondary income they are 12% of every dollar. IETC is applied as a credit against income tax when you tell us your tax code includes it.

Update log

1 November 2026 — All 2026–27 parameters verified line by line against IRD and Employment New Zealand pages, including three corrections to figures circulating elsewhere: the 30% band ceiling is $78,100 (not $78,400), the KiwiSaver default is 3.5% (not 3%), and the IETC ceiling is $70,000 (not $48,000).

Spotted a number that looks wrong? Tell us via the about page — accuracy is the whole product.