NZ Income Tax Rates 2026/27
New Zealand uses a progressive tax system - you don't pay the highest rate on all your income, only on the portion that falls within each bracket. The thresholds below apply for the full 2026/2027 tax year (1 April 2026 to 31 March 2027). They are unchanged from 2025/26, when the current thresholds took effect.
| Bracket | Taxable income | Rate | Visual |
|---|---|---|---|
| Band 1 | $0 – $15,600 | 10.5% | |
| Band 2 | $15,601 – $53,500 | 17.5% | |
| Band 3 | $53,501 – $78,100 | 30% | |
| Band 4 | $78,101 – $180,000 | 33% | |
| Band 5 | Over $180,000 | 39% |
Source: Inland Revenue (ird.govt.nz), checked July 2026.
Tax codes - getting them right
- M - Main income, standard deductions. Most employees use this.
- ME - Main income, eligible for Independent Earner Tax Credit (IETC) if you earn $24k–$70k and don't receive Working for Families. Worth up to $520/year (full credit up to $66k, then abates by 13c per $1 to nil at $70k).
- S / SB / ST - Secondary income. If you have a second job, use the right secondary code or you may under-pay and face a bill at year end.
- NSW - No secondary tax withheld. Only appropriate in specific circumstances.
PAYE & GST Calculators
Estimates only. Does not include Working for Families, IETC, or other credits. For accurate figures consult a tax professional or use myIR.
New Zealand GST is 15%. Use this calculator to add or remove GST from any amount.
NZ GST rate is 15%. All businesses with turnover over $60,000 per year must register for GST with the IRD.
Calculate your KiwiSaver contributions, employer match and total retirement savings at different contribution rates.
Government contribution is 25c per $1 you contribute, up to $260.72/year (from 1 July 2025). Employer match shown at same rate as employee. Figures are approximate.
KiwiSaver: current rates and scheduled changes
Contribution rate roadmap
Employee options
You can contribute 3%, 3.5%, 4%, 6%, 8% or 10% of your gross pay. If 3.5% is too much right now, you can apply to IRD for a temporary reduction back to 3% for up to 12 months.
Employer match
Employers must match the minimum rate of 3.5%. If an employee takes a temporary rate reduction to 3%, the employer can also contribute 3%. From Apr 2026, 16 and 17-year-olds are included.
Government contribution
From 1 July 2025, the government contributes 25c per $1 you contribute, up to $260.72/year. Previously 50c/$1, max $521.43. Members earning over $180,000 are no longer eligible.
| Rate | On $60,000 salary - your contrib. | Employer match | Total per year |
|---|---|---|---|
| 3% (temp. reduction) | $1,800 | $1,800 | $3,600 + govt contrib. |
| 3.5% New default | $2,100 | $2,100 | $4,200 + govt contrib. |
| 4% | $2,400 | $2,400 | $4,800 + govt contrib. |
| 6% | $3,600 | $2,100 (min) | $5,700 + govt contrib. |
| 8% | $4,800 | $2,100 (min) | $6,900 + govt contrib. |
First home withdrawal
If you've been in KiwiSaver for at least 3 years, you may be able to withdraw your balance (minus $1,000) to go towards buying your first home. You must intend to live in the property. Talk to your KiwiSaver provider or a financial adviser about eligibility.
Key Tax Dates 2025/26
If a deadline falls on a weekend or public holiday, it moves to the next working day. Dates shown are for a standard 31 March balance date. Using a tax agent usually provides extension of time for filing.
GST filing frequencies
- 6-monthly - Turnover under $500,000. Due dates: 28 October and 7 May.
- 2-monthly - Most common. Due 28th of the month after your period ends (except March period: 7 May, and November period: 15 January).
- Monthly - Mandatory for turnover over $24 million, or by choice. Due 28th of following month.
- Not sure? Check your filing frequency in myIR or ask your accountant.
Business Tax Overview
Key rates and obligations for Pāpāmoa businesses. Always confirm your specific position with a registered tax professional.
Company tax rate
Flat rate on net company profit. Applies to NZ resident companies. Budget 2024 introduced no new company tax increases.
GST rate
Must register if turnover exceeds $60,000/year. File monthly, 2-monthly or 6-monthly returns and remit to IRD.
Trust tax rate
Trustee income is taxed at 33%. Beneficiary income is taxed at the beneficiary's marginal rate.
FBT - top rate
Fringe Benefit Tax applies to non-cash benefits provided to employees. Quarterly payments due 20th of the month.
Provisional tax threshold
If your residual income tax (RIT) exceeds $5,000, you must pay provisional tax in 2–3 instalments during the year.
Investment Boost
Immediate 20% deduction for eligible new productive business assets from 22 May 2025. Balance depreciated normally.
Sole traders & self-employed
- Taxed at individual income tax rates (same brackets as PAYE employees).
- Must file an IR3 individual tax return by 7 July each year (or 31 March if using a tax agent).
- Must register for GST if annual turnover exceeds $60,000.
- May need to pay provisional tax if residual income tax is over $5,000.
- Can claim business expenses to reduce taxable income.
- KiwiSaver contributions are voluntary but employer match doesn't apply if self-employed.