PAYE Tax Rates and Brackets for 2025 2026

New Zealand updates its tax rules each year. For the 2025-2026 tax year, rates stay the same, but thresholds rise. This boosts take-home pay for many Kiwis. Employers deduct PAYE from wages. It covers income tax and ACC levies. Know these changes to plan your finances. The tax year runs from 1 April 2025 to 31 March 2026.

Thresholds increase from last year. The lowest bracket now covers up to $15,600 at 10.5%. Last year, it stopped at $14,000. Higher earners see shifts too. These tweaks come from Budget 2024 adjustments. They aim to ease costs for families. Check your pay slips often.

PAYE stands for Pay As You Earn. Your boss withholds tax based on your earnings. Add ACC for injury cover. For 2025-2026, ACC earners’ levy hits 1.67% on earnings up to $152,790. Max levy caps at $2,551.59. This protects you without overcharging.

Understand these rates. They shape your net pay. Use this guide to grasp NZ tax brackets for 2025. See examples and tips ahead.

Detailed Tax Brackets for 2025-2026

NZ uses progressive tax rates. You pay more as income grows. Here, find the full brackets for individuals.

Income Range	Tax Rate	Notes
$0 – $15,600	10.5%	Entry level for low earners. Up from $14,000 last year.
$15,601 – $53,500	17.5%	Covers many full-time workers. Threshold rose from $48,000.
$53,501 – $78,100	30%	For mid-range salaries. Extended from $70,000.
$78,101 – $180,000	33%	High earners pay this. No big shift here.
$180,001 and over	39%	Top rate for executives. Stays unchanged.

Compare to 2024-2025. Last year had extra brackets due to mid-year changes. For example, $14,001 – $15,600 taxed at 12.82%. Now, it simplifies. $48,001 – $53,500 was 21.64%. That vanishes too. These updates mean less tax for some.

Add ACC to your calculations. Employers deduct it with income tax. Rate: 1.67% on liable earnings. Liable earnings include salary, bonuses, and overtime. Cap stops at $152,790. Over that, no more levy.

KiwiSaver and student loans add deductions. KiwiSaver: 3%, 4%, 6%, 8%, or 10% voluntary. Student loans: 12% on income over $23,920 yearly. Factor these in for accurate net pay.

These brackets apply to residents. Non-residents face different rules. Always confirm with IRD.

Scenarios: How Tax Applies to Secondary Jobs and Bonuses

See real examples. They show tax impact on take-home pay.

First, single job at $50,000 yearly. Falls in 17.5% bracket mostly.

Break it down. First $15,600 at 10.5%: Tax $1,638.

Next $34,400 at 17.5%: Tax $6,020.

Total income tax: $7,658.

Add ACC: 1.67% on $50,000 = $835.

Gross deductions: $8,493.

Net pay: $41,507.

Assume no KiwiSaver or loans. Your actual varies.

Now, add secondary job. Say $20,000 extra. Total income: $70,000.

Use secondary tax code. It taxes extra at higher rate.

Main job: As above.

Secondary: Falls into 30% bracket partly.

But IRD squares up at year-end. You might get refund.

For $70,000 total:

$15,600 at 10.5%: $1,638.

$37,900 at 17.5%: $6,632.50.

$16,500 at 30%: $4,950.

Total tax: $13,220.50.

ACC: 1.67% on $70,000 = $1,169.

Net: $55,610.50.

Without secondary, net was $41,507. Extra job adds $14,103.50 net.

Bonuses count as income. Say $5,000 bonus on $50,000 salary.

Total: $55,000.

Tax: First $15,600 at 10.5%: $1,638.

Next $37,900 at 17.5%: $6,632.50.

Last $1,500 at 30%: $450.

Total tax: $8,720.50.

ACC: 1.67% on $55,000 = $918.50.

Net: $45,361.

Bonus nets $3,854 after deductions.

These show progressive system. Higher income means higher rate on top portion.

For self-employed, pay provisional tax. Use IRD tools for estimates.

Tips to Update Your IRD Tax Code

Choose right tax code. It ensures correct deductions.

Tax codes: M for main job, under $70,000.

ME for main, over $70,000.

S for secondary, under $14,000.

SB for secondary, $14,001-$48,000.

And so on.

Update if income changes. Fill IR330 form. Give to employer.

Wrong code? Overpay or underpay. File return for refund.

Check myIR account. It shows your details.

For multiple jobs, use tailored code. IRD calculator helps.

Stay current. Rates change yearly.

Use Our PAYE Calculator

Try our free tool. It models your take-home pay.

Enter salary, deductions. See net amount instantly.

Visit https://payecalculatornz.org/. Plug in 2025 rates.

It handles tax, ACC, KiwiSaver.

Get accurate figures. Plan your budget better.

This guide covers NZ PAYE for 2025-2026. Use it to understand tax brackets. Save money where you can.