How New Zealand Income Tax Works
New Zealand has a straightforward 5-bracket income tax system with no personal allowance — all income is taxed from the first dollar. The top rate is 39% above NZD 180,000. The only major levy is the ACC Earners' Levy (1.53%) which funds accident compensation. Most employees use PAYE and never need to file a return.
| Rate | Income |
|---|---|
| 10.5% | NZD 0 – $14,000 |
| 17.5% | NZD 14,001 – $48,000 |
| 30% | NZD 48,001 – $70,000 |
| 33% | NZD 70,001 – $180,000 |
| 39% | Above NZD 180,000 |
- →No personal allowance — tax applies from the first dollar earned
- →ACC Earners' Levy: 1.53% on income up to NZD 139,384 — funds accident treatment and income replacement
- →KiwiSaver: 3% default employee contribution (not a tax — goes to retirement fund)
- →Employer contributes 3% to KiwiSaver + government kickstart — total ~6%+ for members
- →GST: 15% on goods and services — businesses register above NZD 60,000 turnover
- →File IR3 via myIR at ird.govt.nz — most employees don't need to file at all