5 tax brackets from 10.5% to 39%
New Zealand's hidden trap: no tax-free threshold—you pay 10.5% from dollar one. But the benefit: no capital gains tax on property or shares (mostly). Rates run 10.5-39%. A NZ$100,000 earner pays ~NZ$23,920 (~24%). ACC levy ~1.6% for accident coverage. KiwiSaver: 3-10% employee + 3% employer match. Tax year: April 1-March 31.
New Zealand has 5 progressive brackets from 10.5% to 39%. The 39% top rate (introduced 2021) applies above NZ$180,000. A key difference: no tax-free threshold—you pay from dollar one. But here's the famous benefit: no capital gains tax on property or shares (with limited exceptions). ACC levies (~1.6% employee) fund accident coverage. KiwiSaver retirement contributions run 3-10% employee + 3% employer match. A NZ$100,000 earner pays roughly NZ$23,920 income tax (~24%). Tax year runs April 1-March 31. IRD (Inland Revenue) withholds PAYE automatically for employees. Filing deadline is July 7 (later with tax agent). Use our calculator to estimate your New Zealand tax liability.
| Taxable Income | Tax Rate |
|---|---|
| NZ$0 - NZ$15,600 | 10.5% |
| NZ$15,600 - NZ$53,500 | 17.5% |
| NZ$53,500 - NZ$78,100 | 30% |
| NZ$78,100 - NZ$180,000 | 33% |
| Over NZ$180,000 | 39% |
Note: These are marginal rates - you only pay the higher rate on income within each bracket.
Source: Inland Revenue NZ
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Get Paid as a Contractor →New Zealand has 5 brackets for the 2025-26 tax year: 10.5% on NZ$0-15,600, 17.5% on NZ$15,600-53,500, 30% on NZ$53,500-78,100, 33% on NZ$78,100-180,000, and 39% above NZ$180,000. The thresholds were adjusted in 2024 to reduce bracket creep. Unlike most countries, there's no tax-free threshold—the 10.5% rate applies from the first dollar.
No general capital gains tax exists in New Zealand—profits from selling property (except 'bright-line' properties held under 2 years), shares, and other investments are typically tax-free. This makes NZ attractive for investors. However, property traders, those who buy with intention to sell, and some crypto profits may be taxable as income.
KiwiSaver is New Zealand's retirement savings scheme. Employees are auto-enrolled but can opt out within 8 weeks. Contribution rates are 3%, 4%, 6%, 8%, or 10% of salary. Employers must contribute 3%. Government adds annual member tax credit up to $521. Funds locked until age 65 (or first home purchase). Total contribution 6%+ makes it significant forced savings.
ACC (Accident Compensation Corporation) levy funds no-fault accident insurance covering all NZ residents and visitors. Employees pay ~1.6% earner levy (on first $142,283 of income). This covers treatment, rehabilitation, and lost income for any injury—work-related or not. In exchange, you cannot sue for personal injury. It's unique to New Zealand.
New Zealand's tax year runs April 1 to March 31 (not calendar year). Most employees with only PAYE income don't need to file—IRD automatically calculates and sends refunds or bills. Self-employed and those with other income file IR3 returns by July 7, or later dates if using a tax agent (extensions to March following year possible).
Last Updated: March 2026