Your Salary
Salary after tax
Take home pay: $49,388
Income Tax: $11,620
ACC: $992
Contribution Rate: 20%
To calculate take-home pay in New Zealand, subtract the following from your gross salary:
Below are the tax brackets:
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.
The minimum is $23.15 per hour.
It will increase in April.Read more about New Zealand minimum wage.
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..
Deadline to submit your tax returns:The tax return must be submitted by 7 July. Find more information on the government website.
$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.
$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.
$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.
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
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 |
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.
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) |
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.
There are no Class categories for ACC contributions as in the NIC system.
For retirement savings, New Zealanders can contribute to KiwiSaver, a voluntary, work-based savings initiative:
Additional deductions from a New Zealand paycheck may include:
Calculating salary involves several key factors, including gross income, deductions, and taxes. Here's a breakdown of how it typically works:
1. Gross IncomeSalary 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.
Various deductions are made from the gross income.
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.
Payments like overtime and bonuses may have different tax rules, rates, or exemptions, so their treatment can vary.
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.
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.
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 |