New Zealand Tax Calculator 2025: Complete Guide to NZ Income Tax & ACC

New Zealand's tax system is relatively straightforward with progressive income tax rates, ACC levies, and various tax credits. This comprehensive guide will help you understand and calculate your tax liability in New Zealand for the 2024-25 tax year.

New Zealand Income Tax Brackets 2024-25

New Zealand uses a progressive tax system (PAYE - Pay As You Earn) with the following brackets:

Tax Rates for 2024-25:

10.5% on income up to NZ$14,000
17.5% on income between NZ$14,001 and NZ$48,000
30% on income between NZ$48,001 and NZ$70,000
33% on income between NZ$70,001 and NZ$180,000
39% on income over NZ$180,000

Example Calculation

Annual income: NZ$75,000

NZ$0 - NZ$14,000: NZ$1,470 (10.5%)
NZ$14,001 - NZ$48,000: NZ$5,950 (17.5%)
NZ$48,001 - NZ$70,000: NZ$6,600 (30%)
NZ$70,001 - NZ$75,000: NZ$1,650 (33%)
Total income tax: NZ$15,670
Effective rate: 20.9%

ACC Levies

The Accident Compensation Corporation (ACC) provides no-fault personal injury cover for all New Zealanders.

Earners' Levy 2024-25

Rate: 1.53% of liable earnings

Maximum liable earnings: NZ$139,384

Maximum levy: NZ$2,133

Example: Income NZ$75,000

ACC levy: NZ$75,000 × 1.53% = NZ$1,148

Working Safer Levy

Rate: 0.08% of liable earnings

Included in the 1.53% rate above
Funds workplace injury prevention

Self-Employed ACC

Different rates apply:

Based on industry risk
Minimum levy applies
Can choose cover level

Total Tax Burden Example

Income: NZ$75,000

Income tax: NZ$15,670 (20.9%)
ACC levy: NZ$1,148 (1.53%)
Total: NZ$16,818 (22.4%)
Net income: NZ$58,182

Tax Codes

Your tax code determines how much tax is deducted from your pay.

Common Tax Codes

M - Primary income source

Most common code
Includes tax-free threshold
Use for main job

ME - Primary with student loan

Main job with student loan deductions
12% student loan repayment

SB - Secondary income

For second job
No tax-free threshold
Higher withholding

S - Secondary with student loan

Second job with student loan
Higher withholding

SH - Secondary high rate

33% flat rate
For additional income

ST - Secondary top rate

39% flat rate
For high earners with multiple jobs

CAE - Casual agricultural employee

Special rate for seasonal work

EDW - Election day worker

Special rate for election workers

NSW - No notification

45% rate if no tax code provided
Avoid by providing correct code

Student Loan Repayments

If you have a student loan, repayments are deducted from your pay.

Repayment Rate

12% of income over the threshold

2024-25 threshold: NZ$24,128 (annual)

Weekly threshold: NZ$464

Fortnightly threshold: NZ$928

Example

Annual income: NZ$75,000

Income over threshold: NZ$75,000 - NZ$24,128 = NZ$50,872
Repayment: NZ$50,872 × 12% = NZ$6,105

Total deductions:

Income tax: NZ$15,670
ACC: NZ$1,148
Student loan: NZ$6,105
Total: NZ$22,923 (30.6%)
Net income: NZ$52,077

Overseas-Based Borrowers

Different rules apply:

Must make repayments even if not earning in NZ
Minimum repayment amounts
Interest may apply

KiwiSaver

KiwiSaver is New Zealand's voluntary retirement savings scheme.

Contribution Rates

Employee contributions (choose one):

3% of gross pay
4% of gross pay
6% of gross pay
8% of gross pay
10% of gross pay

Employer contributions:

Minimum 3% of gross pay
Required for employees contributing 3%+

Example: NZ$75,000 income, 3% contribution

Employee contribution:

NZ$75,000 × 3% = NZ$2,250

Employer contribution:

NZ$75,000 × 3% = NZ$2,250

Total KiwiSaver: NZ$4,500 per year

Government Contribution

Member tax credit:

50 cents for every dollar you contribute
Up to NZ$521.43 per year
Must contribute NZ$1,042.86 to get maximum

KiwiSaver Benefits

First home:

Can withdraw for first home purchase
Must be member for 3+ years
First Home Grant available (up to NZ$10,000)

Retirement:

Access at 65 (or after 5 years if joined after 60)
Lump sum or regular payments

Hardship:

Early withdrawal in specific circumstances
Significant financial hardship
Serious illness
Permanent emigration

Tax Credits

Independent Earner Tax Credit (IETC)

Up to NZ$520 per year

Eligibility:

Income between NZ$24,000 and NZ$48,000
Not receiving benefits or NZ Super
Not receiving Working for Families

Amount:

NZ$10 per week (NZ$520 per year)
Automatically applied if eligible

Working for Families Tax Credits

For families with dependent children:

Family Tax Credit:

NZ$136 per week for first child (0-15)
NZ$111 per week for subsequent children (0-12)
NZ$136 per week for subsequent children (13-15)
Abates at 25% for income over NZ$42,700

In-Work Tax Credit:

NZ$72 per week for up to 3 children
NZ$18 per week for each additional child
Must be working minimum hours
Abates at 25% for income over NZ$42,700

Minimum Family Tax Credit:

Ensures minimum income for working families
NZ$632 per week after tax
Must be working full-time

Parental Tax Credit:

NZ$220 per week for first 10 weeks
For newborns
Not receiving Paid Parental Leave

Best Start Tax Credit

For children under 3:

NZ$72 per week for first year (all families)
NZ$72 per week for years 2-3 (if income under NZ$93,858)
Abates at 21% for income over threshold

Paid Parental Leave

26 weeks paid leave:

For primary carer
Must meet eligibility criteria
Rate: NZ$754.87 per week (before tax) for 2024-25

Partner's Leave:

2 weeks paid leave
Same rate as primary carer

Tax on Investment Income

Resident Withholding Tax (RWT)

On interest income:

10.5%, 17.5%, 30%, or 33%
Based on your tax rate
Deducted at source

Provide IRD number:

To avoid 45% default rate

Portfolio Investment Entity (PIE)

For managed funds:

Prescribed Investor Rate (PIR)
10.5%, 17.5%, or 28%
Based on income

Choose correct PIR:

Too high: Overpay tax
Too low: May owe tax

Dividend Withholding Tax

On dividends:

Usually includes imputation credits
Reduces tax on dividends
May result in refund

Property Tax

Bright-Line Test

Capital gains on property:

2 years for main home
10 years for investment property
Taxed as income if sold within period

Exemptions:

Main home (with conditions)
Inherited property
Relationship property

Rental Income

Fully taxable:

All rental income must be declared
Can deduct expenses
Interest deductibility being phased back in

Deductible expenses:

Rates and insurance
Repairs and maintenance
Property management fees
Interest (phasing back to 100%)

Self-Employed Tax

Provisional Tax

Pay tax in installments:

If residual income tax over NZ$5,000
Three payments per year
Based on previous year's income

Payment dates:

28 August
15 January
7 May

GST (Goods and Services Tax)

15% on most goods and services

Must register if:

Turnover over NZ$60,000 per year
Can register voluntarily

Filing periods:

Monthly, two-monthly, or six-monthly
Depends on turnover

Deductible Business Expenses

Fully deductible:

Stock and materials
Business premises costs
Vehicle expenses (business portion)
Equipment and tools
Professional fees
Marketing and advertising
Staff costs

Partially deductible:

Home office (business portion)
Vehicle (business use percentage)
Phone and internet (business portion)

Tax Planning Strategies

1. Optimize KiwiSaver

Strategy:

Contribute at least NZ$1,042.86
Get maximum government contribution
Choose appropriate fund

2. Claim All Tax Credits

Don't miss:

IETC if eligible
Working for Families
Best Start
KiwiSaver member tax credit

3. Manage Student Loan

Strategies:

Make voluntary payments
Pay off faster to save interest
Keep IRD updated on circumstances

4. Investment Tax Efficiency

Choose right structure:

Correct PIR for PIE investments
Provide IRD number for RWT
Consider imputation credits

5. Property Investment

Plan for:

Bright-line test
Interest deductibility changes
Proper expense records

Filing Your Tax Return

Who Must File?

Individual tax return (IR3) required if:

Self-employed
Income over NZ$200,000
Rental income
Foreign income
Claiming tax credits

Most employees:

Don't need to file
Tax automatically calculated
May get automatic refund

Filing Deadline

31 March - End of tax year

7 July - Individual return due (if required)

31 March (next year) - If using tax agent

myIR

Online tax account:

View income information
File returns
Check refunds
Update details
Make payments

Common Mistakes to Avoid

Wrong tax code: Using SB when should use M
Not claiming tax credits: Especially IETC and WFF
Incorrect PIR: Overpaying or underpaying on investments
Missing KiwiSaver credit: Not contributing enough
Student loan issues: Not updating circumstances
Property tax: Not understanding bright-line test

Using Our New Zealand Tax Calculator

Our calculator provides:

Accurate 2024-25 tax calculations
ACC levy included
Student loan repayments
KiwiSaver contributions
Tax credits (IETC, WFF)
Net income after all deductions

Input required:

Annual income
Tax code
Student loan status
KiwiSaver contribution rate
Number of children (for WFF)

Why NZ's Tax System is Straightforward

Simple structure:

No state or local income taxes
No capital gains tax (except bright-line)
No inheritance tax
No payroll tax

Efficient:

PAYE system works well
Most people don't file returns
Automatic refunds
Good online systems

Conclusion

New Zealand's tax system is relatively simple compared to many countries, with progressive rates up to 39%, ACC levies around 1.5%, and various tax credits that can reduce your liability. The PAYE system means most employees don't need to file tax returns, and the IRD's online systems make managing your tax straightforward.

Use Our Free New Zealand Tax Calculator →

Get an accurate estimate of your tax liability, ACC levies, and net income. Consider consulting with a tax professional for personalized advice, especially if you're self-employed, have rental properties, or have complex income sources.

Disclaimer: This guide provides general information only. New Zealand tax law changes regularly, and individual circumstances vary. Always consult with a qualified tax professional for advice specific to your situation.