Take Home Calculator NZ - 2023/2024

How much is your salary after taxes in New Zealand?

Salary calculator 2023/2024

Your Salary

Salary after tax

Take home pay: $49,388

Income Tax: $11,620

ACC: $992

Contribution Rate: 20%

Last update: June, 2024

Frequently Asked Questions (FAQ)

How to calculate take home pay?

To calculate take-home pay in New Zealand, subtract the following from your gross salary:

  • Income tax, which is levied at progressive rates based on your income level.;
  • Contributions to the accident Compensation Corporation (ACC), a compulsory program that provides personal injury cover.;
  • Contributions to KiwiSaver, the voluntary, work-based savings initiative to help with your long-term saving for retirement.;
  • Student loan repayments, if you have a student loan and your income is above the repayment threshold.;
  • Other deductions, such as union fees or charitable donations, that you may have opted into.
Find an estimate of your salary after tax in a second by using a tax calculator. Simply input your gross salary, and the calculator instantly provides your net salary.

Take home tax calculator

What is the tax rate in the New Zealand?

Below are the tax brackets:

  • 10.5% for income up to $14,000.
  • 17.5% for income over $14,000 and up to $48,000.
  • 30% for income over $48,000 and up to $70,000.
  • 33% for income over $70,000.
  • 39% for income over $180,000 (introduced for the highest earners).

Read more about New Zealand tax rate.

How do you calculate salary from hourly rate?

Calculating a salary from an hourly rate is based on the number of hours worked per week and the number of weeks worked per year. Here is how you can calculate the annual salary from an hourly rate:

Annual Salary = Hourly Rate × Hours Per Week × Weeks Per Year

Example: Suppose someone earns $20 per hour and works 40 hours a week for the entire year:
Annual Salary = $20 × 40 × 52 = $41,600.

Try the hourly wage calculator

What is the minimum wage in New Zealand?

The minimum is $23.15 per hour.

It will increase in April.Read more about New Zealand minimum wage.

What are the dates for the tax year?

The tax year runs from April 1st to March 31st. Once the tax year wraps up, we check to see if you have paid the right amount of tax, owe a bit more, or if you are in for a refund..

When do i need to submit my tax return?

Deadline to submit your tax returns:The tax return must be submitted by 7 July. Find more information on the government website.

How much is $50,000 after tax?

$50,000 a year is about $41,215 after tax in New Zealand for a resident (full year). You will have to pay about $8,020 in taxes and $765 in Accident Compensation Corporation (ACC). Numbers based on New Zealand Taxation Office.

How much is $60,000 after tax?

$60,000 a year is about $48,062 after tax in New Zealand for a resident (full year). You will have to pay about $11,020 in taxes and $918 in Accident Compensation Corporation (ACC). Numbers based on New Zealand Taxation Office.

How much is $70,000 after tax?

$70,000 a year is about $54,909 after tax in New Zealand for a resident (full year). You will have to pay about $14,020 in taxes and $1,071 in Accident Compensation Corporation (ACC). Numbers based on New Zealand Taxation Office.

Is Accident Compensation Corporation (ACC) the same as tax?

In New Zealand, the Accident Compensation Corporation (ACC) levies and income tax are two distinct types of deductions from your wages. While both involve payments to government entities, they serve different purposes. Income tax contributions are directed to the New Zealand Treasury and are utilized to finance a wide array of public services. On the other hand, ACC levies specifically fund the ACC scheme, which provides comprehensive, no-fault personal injury cover for all New Zealand residents and visitors to New Zealand. This system supports people in the event of an injury, helping with the costs associated with treatment, rehabilitation, and lost income.

Find out more about Accident Compensation Corporation (ACC) and taxes in New Zealand

Salary calculator NZ

The latest figures for April 2023/2024 are now Accessible, providing you with the most current data. Utilize our Take-Home Salary Calculator to determine your salary after taxes.

For example a salary of $30,000 a year is about $24,424 after tax in New Zealand for a resident (full year). You will have to pay about 19% of your salary in taxes and $2,091 in Accident Compensation Corporation (ACC). These rates apply to individuals who are NZ residents for tax purposes in 2023/2024. Numbers based on the New Zealand Taxation Office.

Yearly salary $62,000
Income Tax $11,620
Accident Compensation Corporation (ACC) $992
Income tax rates 20%
$62,000 after tax $49,388

NZ tax rates: what you need to know

The percentage of tax taken out of your paycheck in New Zealand depends on your income and tax code. New Zealand uses a progressive tax system, which means that the percentage of tax you pay increases as your income goes up.

Income Tax

New Zealand employs a progressive tax system, where tax rates escalate with the increase in income over the tax year. Unlike some other countries, New Zealand does not have a tax-free Personal Allowance.

Here are the NZ tax brackets:

10.5% On taxable incomes up to $14,000
17.5% On taxable incomes between $14,001 and $48,000
30% On taxable incomes between $48,001 and $70,000
33% On taxable incomes over $70,000
39% On taxable incomes over $180,000 (applied from 1 April 2021)

Accident Compensation Corporation (ACC) Contributions

In New Zealand, both employees and employers contribute to the Accident Compensation Corporation (ACC), which provides comprehensive, no-fault personal injury cover. ACC levies are solely focused on injury prevention, care, and recovery support.

  • Deducted from employee wages and employer contributions.
  • Rates vary based on the type of work and risk associated with specific industries.

There are no Class categories for ACC contributions as in the NIC system.

KiwiSaver Contributions

For retirement savings, New Zealanders can contribute to KiwiSaver, a voluntary, work-based savings initiative:

  • Automatic Enrollment: Employees are automatically enrolled in KiwiSaver but can opt-out.
  • Contribution Rates: Members can choose to contribute 3%, 4%, 6%, 8%, or 10% of their gross salary. Employers must contribute at least 3%.
  • Opting Out: Employees can choose to opt out of KiwiSaver within a specified period after being automatically enrolled.

Other Deductions

Additional deductions from a New Zealand paycheck may include:

  • Student Loan Repayments: If you have a student loan and earn above a certain threshold, repayments are automatically deducted from your salary.
  • Union Dues: For union members, fees may be deducted from salaries to support union activities.
  • Benefits: Some benefits, like use of a company car, may be taxable. The value of these benefits is considered additional income for tax purposes.
  • Other: Other possible deductions include child support payments, charitable contributions, or payments into other savings schemes.
  • Click here for more information about deductions in New Zealand

Understanding salary calculations in New Zealand

Salary Income in New Zealand: A Comprehensive Guide

Calculating salary involves several key factors, including gross income, deductions, and taxes. Here's a breakdown of how it typically works:

1. Gross Income

Salary calculations start with the gross income, which includes the total earnings before any deductions or taxes. Gross income encompasses the basic salary, bonuses, commissions, overtime pay, and other forms of compensation specified in the employment contract.

2. Deductions

Various deductions are made from the gross income.

  • Income Tax
  • Accident Compensation Corporation (ACC)
  • KiwiSaver Contributions
  • Other Deductions

3. Take-Home Pay

After all deductions, the remaining amount is the net salary, also known as take-home pay. This is the actual amount deposited into the employee's bank account and available for personal expenses.

4. Overtime and Additional Payments

Payments like overtime and bonuses may have different tax rules, rates, or exemptions, so their treatment can vary.

5. Tax Codes and Allowances

The tax calculation considers the employee's tax code, reflecting tax-free allowances and deductions. Having the correct tax code is crucial for accurate calculations.

6. Year-End Adjustments

At the end of each tax year (April 1st to March 31st in New Zealand), individuals may need to file a tax return, especially if they have underpaid or overpaid their tax during the year. This process ensures that everyone pays the correct amount of tax.

Employers typically provide detailed pay statements to employees, outlining earnings and deductions. Payroll software and systems are commonly used for automation and compliance with New Zealand's tax and employment regulations.

Keep in mind that tax laws and rates can change yearly, and individual circumstances may vary. For precise calculations and tax advice, consult a tax professional or use specialized payroll software for New Zealand payroll.

New Zealand minimum wage

As of last year the minimum wage is $23.15 per hour.

This rate is reviewed annually by the New Zealand government and may increase based on changes in the cost of living and other economic factors. It is important to note that some employees, such as those under training arrangements, may be eligible for a different minimum wage rate:

Type of Employee Minimum Wage Rate
Adult $23.15 per hour
Starting-Out Workers $18.52 per hour
Trainees $18.52 per hour