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New Zealand PAYE Calculator 2025

Calculate your PAYE, ACC, KiwiSaver and Net Salary.

Introduction

🎯 What

PAYE (Pay As You Earn) is New Zealand's withholding tax system where employers deduct income tax, ACC levies, and other contributions from employee salaries before payment.

👥 Who

All employees, payroll staff, employers, accountants, and financial officers in New Zealand who need to calculate or understand salary deductions and net pay.

💡 Why

To accurately calculate income tax deductions, ensure compliance with IRD tax law, plan take-home pay, and assist in payroll processing.

💰 Income Details

Calculated on earnings up to $130,000

📋 Deductions & Contributions

Payslip Summary

Net Pay

$0.00

Annual

Gross Income $0.00
PAYE Tax $0.00
ACC Levy $0.00

Effective Rate: 0%

Total Deductions: $0.00

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2025 New Zealand Tax Rates & Thresholds

🇳🇿 PAYE Tax Brackets (2025)

Up to $14,000 10.5%
$14,001 - $48,000 17.5%
$48,001 - $70,000 30%
$70,001 - $180,000 33%
Over $180,000 39%

💼 ACC & Levies (2025)

ACC Earner Levy: 1.46%
Earnings Cap: $130,000
Max Annual Levy: $1,898

ACC provides no-fault accident cover for all New Zealanders

🏦 KiwiSaver Rates

Employee Options: 3%, 4%, 6%, 8%, 10%
Employer (Minimum): 3%
Govt Tax Credit: Up to $521.43

📚 Student Loan Repayment

Repayment Rate: 12%
Threshold (2025): $24,128

12% of income above threshold is deducted via PAYE

Understanding New Zealand PAYE

🏛️ What is PAYE?

Pay-As-You-Earn (PAYE) is the method employers use to deduct tax from your salary and pay it to Inland Revenue (IRD) on your behalf. It ensures you pay your income tax liability in manageable regular amounts.

📊 Progressive Tax System

New Zealand uses a progressive tax system with rates from 10.5% to 39%:

  • 10.5%: Up to $14,000 (lowest earners)
  • 17.5%: $14,001 - $48,000
  • 30%: $48,001 - $70,000
  • 33%: $70,001 - $180,000
  • 39%: Above $180,000 (highest earners)

💼 ACC Earner Levy

The ACC earner levy (1.46% for 2025) funds accident compensation coverage. It's capped at $130,000 annual earnings, meaning the maximum levy is $1,898 per year. This provides no-fault personal injury cover for all New Zealanders.

🏦 KiwiSaver Contributions

KiwiSaver is voluntary retirement savings:

  • Employee chooses 3%, 4%, 6%, 8%, or 10% contribution rate
  • Employer must contribute minimum 3% (not deducted from salary)
  • Government contributes up to $521.43 annually (member tax credit)
  • Contributions reduce taxable income for PAYE purposes

Calculation Examples

Example 1: Standard Employee

Details:

  • • Gross Salary: $60,000
  • • KiwiSaver: 3%
  • • Student Loan: $0
  • • ACC: Yes

Calculation:

  • • KiwiSaver: $1,800
  • • PAYE: $10,480
  • • ACC: $850
  • • Net Pay: $46,870

Example 2: With Student Loan

Details:

  • • Gross Salary: $25,000
  • • KiwiSaver: 4%
  • • Student Loan: $500
  • • ACC: Yes

Calculation:

  • • KiwiSaver: $1,000
  • • PAYE: $3,133
  • • ACC: $343
  • • Net Pay: $20,024

Example 3: High Earner

Details:

  • • Gross Salary: $200,000
  • • KiwiSaver: 10%
  • • Student Loan: $0
  • • ACC: Yes

Calculation:

  • • KiwiSaver: $20,000
  • • PAYE: $50,320
  • • ACC: $1,898 (capped)
  • • Net Pay: $127,782

Frequently Asked Questions

Q: What is PAYE?

A: PAYE (Pay As You Earn) is a system for deducting income tax and ACC levies from employee salaries. Employers deduct tax from your pay and send it to Inland Revenue (IRD) on your behalf.

Q: Who must pay PAYE?

A: All employees and salary earners in New Zealand must pay PAYE. Self-employed individuals pay tax differently through provisional tax rather than PAYE.

Q: Are KiwiSaver contributions included in taxable income?

A: KiwiSaver contributions reduce your taxable income for PAYE purposes. You pay tax on your gross salary minus your KiwiSaver contribution.

Q: What is the ACC earner levy rate?

A: The ACC earner levy rate for 2025 is 1.46% of earnings up to $130,000 annual income. The maximum levy per person is $1,898 per year.

Q: How is student loan repayment calculated?

A: Student loan repayments are 12% of income above the repayment threshold ($24,128 for 2025). They are automatically deducted through PAYE if you have a student loan code on your tax file.

Q: Is this calculator official?

A: No, this calculator is for informational and educational purposes only. For official PAYE calculations and personalized advice, consult Inland Revenue (IRD) at www.ird.govt.nz.

⚠️ DISCLAIMER: This New Zealand PAYE Calculator 2025 is provided for informational and educational purposes only, and is designed to be compliant with Google AdSense content policies.

PAYE calculations are estimated based on IRD 2025 tax year rates (1 April 2024 - 31 March 2025) and ACC levy guidelines. Rates and rules are based on Inland Revenue and ACC official guidance.

Actual tax deductions may vary based on specific tax codes, varying income throughout the year, additional deductions, student loan status, IETC eligibility, and other factors.

This calculator does NOT constitute official IRD computation, financial advice, or tax planning advice. For personalized PAYE calculations and tax advice, consult Inland Revenue (IRD) or a qualified tax advisor.

ANTIGRAVITY and etaxing.com assume no liability for decisions made based on this calculator.