Income tax and PAYE questions, answered

Contract Rate to Salary Calculator NZ 2026/27

How do you convert a contract rate to an equivalent salary in New Zealand?

Multiply your day rate by the number of days a year you can realistically bill, which is fewer than the roughly 260 weekdays in a year once you allow for the equivalent of annual leave, public holidays and sick leave that contractors are not paid for, plus your own non-billable time. That gives your annual gross contracting income. Divide that figure by 1 plus the employer KiwiSaver rate, currently 3.5%, to arrive at the permanent salary it is equivalent to, since an employee on that salary would also receive an employer KiwiSaver contribution on top.

Why is a contract rate higher than the equivalent salary?

A permanent employee is paid every week of the year, including 4 weeks of annual leave, around 12 public holidays and statutory sick leave, and receives an employer KiwiSaver contribution on top of salary. A contractor is only paid for days actually billed, receives none of that paid time off, and gets no employer KiwiSaver contribution. To generate the same annual income, a contract rate has to cover the same total value across noticeably fewer paid days, so the headline rate looks much higher than an equivalent hourly salary figure.

How many billable days does a contractor actually have in a year?

Start from 260 weekdays in a standard year (52 weeks of 5 working days). Subtract 20 days for the equivalent of 4 weeks annual leave, 12 days for public holidays, and 10 days for the statutory minimum sick leave entitlement, since a contractor is not paid for any of these. Then subtract your own non-billable time, such as invoicing, marketing, upskilling and gaps between contracts. Many contractors find somewhere between 190 and 220 billable days a realistic range, though it varies by how steady your work pipeline is.

Does this calculator account for ACC?

Both employees and self-employed contractors pay ACC on their earnings, an employee through the 1.75% earner's levy deducted by PAYE, and a self-employed person through their own ACC CoverPlus account. Because this calculator compares gross income to gross salary, and both sides carry a broadly similar earner's-levy style cost, ACC is not separately added or subtracted. Self-employed people also pay an ACC Work levy set by their industry classification, which can be higher in higher-risk trades and is not modelled here.

What non-billable time should I assume?

This is the one figure in the calculator that is a judgement call rather than a fixed rule, since it depends on how consistent your contract pipeline is. Three to four weeks a year is a common planning assumption for a contractor with steady, back-to-back work. Someone between contracts more often, or who spends more time on their own marketing and admin, should use a higher figure.

Is GST included in the rate I should enter?

No. Enter your rate GST-exclusive. If you are GST-registered, the 15% GST you charge on top of your rate is collected on behalf of Inland Revenue and is never your income, so it should not be included in this comparison.

How is this different from the Day Rate Calculator?

The Day Rate Calculator lets you type in a billable-days figure directly and works in both directions, salary to rate and rate to salary. This calculator is built specifically to go from a contract rate to a salary, and shows the full working behind your billable days, building it up from annual leave, public holidays, sick leave and your own non-billable time, rather than asking you to estimate one combined number yourself.

What employer KiwiSaver rate should I use?

3.5% is the default and matches the minimum employer KiwiSaver contribution rate in New Zealand from 1 April 2026. Use 4% if you are comparing against a role you know pays above the minimum, or that applies from 1 April 2028 when the default rate is scheduled to rise.

IR330C Withholding Rate Chooser

What is the IR330C form and who needs to complete it?

The IR330C is the Tax rate notification for contractors. You complete it if you are a contractor receiving schedular payments, meaning payments for an activity listed in Schedule 4 of the Income Tax Act 2007, rather than an employee receiving salary or wages. You give the completed form to whoever pays you. It is not sent to Inland Revenue; the payer keeps it on file for seven years.

What tax rate should I choose on my IR330C?

You can use the standard rate listed for your activity type, which ranges from 10.5% to 33% depending on the work, or nominate your own rate. A good starting point is to estimate your income tax for the year on your expected contracting income and pick a rate close to that average rate, so you neither owe a large amount at year-end nor have too much cash tied up until your refund arrives.

What is the lowest rate I can elect for myself?

If you are a New Zealand tax resident and not on a temporary entry class visa, the lowest rate you can elect is 10%. If you are a non-resident for tax purposes, or hold a temporary entry class visa, the lowest rate you can elect is 15%. A small number of activities, such as non-resident entertainers and professional sportspeople, have a fixed rate with no election available.

What happens if I don't complete an IR330C?

If you do not give your payer a completed IR330C, or you leave out your name, IRD number or signature, the payer must deduct tax at the no-notification rate of 45%. The one exception is non-resident contractor companies, where the no-notification rate is 20%. The 45% rate is far higher than most contractors' actual tax position, so you get the excess back only when you file your end-of-year return.

What is the standard rate for company directors' fees?

The standard schedular payment rate for company directors' fees is 33%, the same rate that applies to examiners' fees, honoraria and public office holders' fees. This is often well above a director's actual marginal tax rate if the directorship is a small part of their income, which is why many directors elect a lower nominated rate.

Does my WT deduction cover my ACC levies?

No. The withholding tax deducted from your schedular payments is for income tax only. ACC does not collect the earner's levy through your WT deduction. As a contractor receiving schedular payments, you will receive an invoice for your ACC levies directly from ACC, generally based on the earnings you declare in your tax return.

Do I still need to file a tax return if my payer withholds WT?

Yes. Contractors receiving schedular payments generally must file an income tax return (an IR3) at the end of the tax year. You declare the gross payments as income and claim the WT already deducted as a tax credit against your final tax bill. If too much was withheld you get a refund; if too little was withheld you pay the difference.

What is a tailored tax rate, and when would I need one?

A tailored tax rate (TTR) is a rate Inland Revenue works out to suit your individual circumstances, for example if the minimum rate that applies to you would still result in too much tax being withheld because of significant deductible expenses. You apply through myIR or by completing an IR23BS form, and show the resulting certificate to your payer. Non-resident contractors follow a different application process.

IRD Instalment Arrangement Calculator NZ 2026/27

What does an IRD instalment arrangement actually cost?

Use of money interest on the declining balance, plus any late payment penalties already incurred. On the worked example, a $45,000.00 income tax debt arranged after the due date attracts $2,250.00 of initial penalties, and paying $2,500.00 a month clears it in 21 months with $3,897.63 of interest. Total repaid is $51,147.63, so the arrangement costs $6,147.63 more than paying on time would have.

What is the current use of money interest rate?

The underpayment rate, which is what Inland Revenue charges you, is 8.97% per annum from 16 January 2026, down from 9.89%. It compounds daily on the outstanding balance. The overpayment rate, which is what Inland Revenue pays you when you have paid too much, is 2.25%. The gap between the two is deliberate: it is expensive to underpay and poor value to deliberately overpay.

What late payment penalties does Inland Revenue charge?

An initial 1% penalty the day after the due date, and a further 4% if the amount is still unpaid seven days after the due date, so 5% in total. There was also a 1% incremental penalty charged monthly, but that was removed from 1 April 2017 for GST, income tax including provisional tax, and Working for Families overpayments. It still applies to some other tax types, which is why this calculator asks you which tax it is.

Is it cheaper to arrange instalments before the due date?

Substantially, and it is the biggest single saving available on this page. Contacting Inland Revenue and agreeing an arrangement before the due date can avoid the initial late payment penalties entirely. On the worked example that is the difference between $51,147.63 and $48,526.32 in total repayments, a saving of $2,621.32 on a $45,000 debt for making a phone call earlier. Interest still accrues either way.

Is tax pooling cheaper than an IRD instalment arrangement?

Often, because approved tax pooling intermediaries buy tax that was paid on time by other taxpayers and on-sell it, and their finance rates are commonly below Inland Revenue's use of money interest. On the worked example, financing the same balance at 7.5% instead of 8.97% saves $697.03. Tax pooling has eligibility rules and works best for provisional and terminal income tax, so check whether your debt qualifies before assuming it is available.

Should I use an overdraft to pay the tax instead?

Only if the rate is genuinely lower, and often it is not. On the worked example a 12% business overdraft costs $5,413.99 of interest against $3,897.63 from Inland Revenue, so borrowing to pay the tax would cost $1,516.36 more. Compare the actual rates rather than assuming bank finance is cheaper. What an overdraft does buy you is a clean record with Inland Revenue and no risk of a defaulted arrangement, which has its own value.

What happens if I miss an instalment?

Inland Revenue can cancel the arrangement, and if that happens the full remaining balance becomes payable immediately and recovery action can resume. That is why the instalment you propose should be one you can sustain in a bad month, not your best month. If circumstances change it is far better to contact Inland Revenue and renegotiate than to simply miss a payment.

Can penalties be remitted?

Sometimes. Inland Revenue has discretion to remit penalties and interest in defined circumstances, including where the failure to pay was caused by an event beyond your control, and there is also relief available where paying would cause serious hardship. Remission is not automatic and depends on your circumstances and your compliance history, so it is worth asking rather than assuming, and worth taking advice if the amount is material.

IRD Kilometre Rate Calculator NZ 2026/27

What are the current IRD kilometre rates?

For a standard petrol or diesel vehicle, the Tier One rate is $1.20 per kilometre and the Tier Two rate is 37 cents per kilometre. These are the most recently published IRD kilometre rates, for the 2025-2026 income year. IRD sets kilometre rates after each income year ends, so these remain the best current figures to use until new rates are published for the 2026-2027 year.

How does the 14,000 km Tier One threshold actually work?

The 14,000 km threshold applies to the vehicle's total travel for the year, business and private combined, not just business kilometres. The Tier One rate covers the business portion of the first 14,000 km of total travel. Once total travel passes 14,000 km, the business portion of every kilometre after that is claimed at the lower Tier Two rate instead.

Why is the Tier One rate higher than Tier Two?

Tier One blends the vehicle's fixed costs, such as depreciation, insurance and registration, with its running costs, such as fuel, servicing and tyres. Tier Two covers running costs only, on the basis that the fixed costs of owning the vehicle are already accounted for within the first 14,000 km of the year.

Do I need a logbook to use the kilometre rate method?

Yes. You need a logbook or another reasonable record of your business travel to support your business-use percentage. Inland Revenue accepts a representative logbook kept for at least 90 consecutive days, which can then be applied to work out your business-use percentage for up to three years, provided your pattern of use has not changed significantly.

Is the kilometre rate method better than claiming actual vehicle costs?

It depends on your travel and your vehicle. The kilometre rate is simpler, since it avoids keeping every fuel, repair and insurance receipt, and it can suit lower-cost vehicles or lower business use well. If you drive a high-value vehicle with heavy business use, working out your actual costs and depreciation may give a larger deduction, though it requires full records and is more work to maintain.

Can I use different rates for diesel, hybrid or electric vehicles?

Yes. IRD publishes separate Tier One and Tier Two rates for petrol, diesel, petrol hybrid and electric vehicles, and diesel and hybrid rates differ slightly from the standard petrol figure used in this calculator. See our full IRD Mileage and Kilometre Rates reference table for the exact rate by vehicle type.

Can employers use the kilometre rate to reimburse staff?

Yes. Employers can reimburse employees tax-free for using their own vehicle for work, using the same IRD kilometre rates and the same 14,000 km Tier One threshold, based on the total travel of the employee's vehicle for the year.

Can a company use the kilometre rate instead of paying Fringe Benefit Tax?

A close company with one or two vehicles that are also used privately by a shareholder-employee may in some circumstances choose to apply the kilometre rate method to that private use instead of accounting for Fringe Benefit Tax. The rules are specific to close companies and the choice generally has to be applied consistently once made, so check the current IRD guidance or your accountant before switching methods.

Low-Value Asset Write-Off Calculator NZ 2026/27

What is the low-value asset write-off threshold in New Zealand?

The threshold is $1,000. A business asset that costs $1,000 or less can be deducted in full in the income year you buy it, rather than being capitalised and depreciated over several years. This $1,000 limit has applied since 17 March 2021.

Is the $1,000 threshold GST-inclusive or GST-exclusive?

It depends on your GST status. If you are registered for GST, you compare the GST-exclusive cost of the asset to $1,000, because you claim the GST separately. If you are not registered for GST, you compare the full GST-inclusive cost you paid, because the GST is part of your cost.

Can I write off an asset that costs exactly $1,000?

Yes. The rule is $1,000 or less, so an asset costing exactly $1,000 (on the correct GST basis) qualifies for an immediate deduction. An asset costing $1,000.01 or more does not and must be depreciated.

What happens if an asset costs more than $1,000?

If the cost is over the threshold, the asset must be capitalised as a fixed asset and depreciated over its useful life at the Inland Revenue rate for that asset type. You claim a portion of the cost as a depreciation deduction each year rather than the whole amount up front. Rates vary widely by asset, so use Inland Revenue's Depreciation Rate Finder.

Can I split an asset or buy items separately to get under the threshold?

No. You cannot split a single asset into components to get each part under $1,000. If you buy several assets from the same supplier at the same time and they have the same depreciation rate, Inland Revenue treats them as one purchase and applies the threshold to the combined cost. The rule targets the true cost of what you bought, not how the invoice is arranged.

Was the low-value asset threshold ever $5,000?

Yes, temporarily. The threshold was $500 until 16 March 2020. It was lifted to $5,000 for assets bought between 17 March 2020 and 16 March 2021 as a COVID-19 support measure, then settled at $1,000 for assets bought from 17 March 2021 onwards. The date you bought the asset determines which threshold applies.

Do I have to write off a low-value asset immediately, or can I choose to depreciate it?

Writing off a qualifying low-value asset immediately is the standard treatment, but it is your choice. In almost all cases claiming the full deduction now is better for cash flow, because it reduces your taxable income sooner. There are rare situations, such as a year with very low income, where spreading the deduction could be preferable, so check with your accountant if in doubt.

Does the write-off apply to assets used partly for private purposes?

The immediate deduction only covers the business-use portion of the asset. If an asset is used partly privately, for example a tool also used at home, you apportion the cost and can only deduct the business-use share. The threshold test still looks at the full cost of the asset, not just the business-use portion.

Online Seller Tax Calculator NZ 2026/27

Do I have to pay tax on selling things online in New Zealand?

It depends on your purpose. Selling your own used personal items, such as clothes, furniture or a car you no longer need, is generally a private sale and is not taxable, whatever the platform or the amount. Buying goods to resell, or making items to sell, with the intention of making a profit is a taxable activity, and that profit must be declared to Inland Revenue as income.

What is the difference between a hobby and a taxable online selling business?

Inland Revenue looks at the whole picture rather than one single factor: whether you intended to make a profit, how regularly and in what volume you sell, whether you buy or hold stock specifically to resell, whether you advertise or operate in a business-like way, and the overall scale of the activity. No single factor is decisive, but the more your selling looks like a deliberate, organised effort to make money, the more likely it is a taxable business rather than a hobby or private sale.

How is my online selling profit taxed?

Trading profit from online selling is taxed like any other income, at your normal marginal income tax rates, not at a separate flat rate. If your selling sits on top of a salary or wage, the profit stacks on top of that income and is taxed at the rate that applies to your combined total, which can push part of it into a higher bracket than your main job alone would suggest.

Do I pay GST on online marketplace sales?

Only once you are registered for GST. You must register once your selling turnover, meaning total sales, not profit, passes $60,000 in any rolling 12-month period, under section 51 of the Goods and Services Tax Act 1985. Once registered, you must charge 15% GST on your sales and file GST returns, but you can also claim GST back on your business expenses. You can register voluntarily below the threshold if it suits your situation.

Do online marketplaces report my sales to Inland Revenue?

New Zealand's digital platform information reporting rules require certain platforms to report seller information to Inland Revenue, but they cover listed services, such as short-stay accommodation, ride-sharing and food delivery, not the sale of goods. So a goods marketplace is not currently required to report your goods sales under these specific rules. This does not make trading profit tax-free. Inland Revenue can still request information from platforms and businesses, and undeclared trading income remains taxable and can attract back taxes, interest and penalties if it is not reported.

Do I pay ACC levies on online selling income?

Usually yes, if the selling is a taxable activity. ACC's earner's levy of 1.75% for 2026/27 applies to your total liable income from all sources combined, up to a cap of $156,641. If you already have a main job where PAYE covers the levy on your salary, you can still owe additional earner's levy on your trading profit once you file, up to the combined cap.

When do I become a provisional taxpayer from online selling?

You become a provisional taxpayer for the following year once your residual income tax, the tax you owe after any amount already deducted at source, is more than $5,000 for a tax year. In your first year of trading you generally pay the tax as a lump sum when you file, but if that bill exceeds $5,000, you then pay the next year's tax in instalments during the year rather than in one hit afterwards.

What records do I need to keep as an online seller?

Once your selling is a taxable activity, Inland Revenue requires you to keep records that support your income and expenses for 7 years. Keep a record of your sales, receipts for goods or materials you bought to sell, platform and payment processing fees, postage and packaging costs, and any other costs of running the activity. Good records also help show which sales were genuine private sales of your own belongings and which were trading, if that line is ever unclear.

Replace Your Salary Revenue Calculator NZ 2026/27

How much revenue do I need to replace my salary?

Far more than the salary, because revenue is not income. Take your target income, add ACC and KiwiSaver, add your fixed business overheads, then divide the total by your gross margin percentage. On the default figures, replacing a $95,000.00 salary needs $99,987.50 of owner cost plus $38,000.00 of overheads, which is $137,987.50 of gross profit. At a 45% gross margin that requires $306,638.89 of revenue, which is 3.2 times the salary being replaced.

Why is the required revenue so much bigger than my salary?

Two multipliers stack up. First, overheads have to be covered before you take anything at all, so the business must earn your income plus its own running costs. Second, only the gross margin portion of revenue is available to cover any of that. At a 45% margin, every dollar of revenue contributes 45 cents, so covering $137,987.50 takes more than double that in sales. People routinely underestimate the requirement by exactly the margin percentage, because they forget the second step entirely.

Should income tax be added to the required revenue?

No, and adding it is a common double count. Your current salary is a gross figure that already has PAYE deducted from it, so replacing the gross salary replaces the tax as well. On the defaults, income tax of $21,227.50 is payable out of the $95,000.00, exactly as it was when you were employed. What does change is the timing: as an employee tax left every payday, whereas self-employed you pay it in provisional instalments and must set the cash aside yourself.

What ACC levies do self-employed people pay in New Zealand?

Self-employed people pay the ACC earners levy on their liable income, which for the 2026/27 year is charged at 1.75% up to an income cap of $156,641, giving a maximum earners levy of $2,741.22. Under ACC CoverPlus they also pay a work levy, which varies substantially by classification unit depending on the risk of the occupation, so a builder pays considerably more than a bookkeeper. This calculator applies the earners levy by default and lets you add your own work levy rate, because no single figure covers every trade.

How does gross margin change the answer?

Dramatically, and it is the most sensitive input on the page. On the defaults a 45% margin requires $306,638.89 of revenue. At 60% the same income needs $229,979.17, and at 30% it needs $459,958.33. That is a $230,000 swing in the revenue target from the margin assumption alone. A consultant selling their own time might run at 80% or more, while a business reselling product with labour attached might run at 25%, and those two owners face completely different sales challenges to earn the same money.

Is a business owner really level with an employee at the same income?

Not entirely, and it is worth being honest about it. Matching the gross salary does not replace employer KiwiSaver contributions unless you fund them yourself, which this calculator lets you do, and it does not replace paid annual leave, sick leave, public holidays, income protection or the certainty of the pay arriving. It also does not compensate for the risk you are now carrying. Many people accept a lower income to be self-employed, which is a legitimate choice, but it should be a choice rather than a surprise.

How many jobs do I need to sell to replace my salary?

Divide the required revenue by your average sale value. On the defaults, $306,638.89 of revenue at an average sale of $2,500.00 is 122.7 jobs a year, which is roughly 2.4 a week every week. Expressing the target this way is usually far more informative than the dollar figure, because most people can immediately tell whether they could win two and a half jobs a week, while very few have any instinct about whether $306,000 of revenue is achievable.

Should I include a wage for myself in the overheads?

No, not in this calculation, because your income is already the target being solved for. Including it in overheads as well would count it twice. Do include the wages of anyone else you employ, and include any part of your own time that is genuinely an administrative overhead rather than income if you want to model paying yourself separately for that. For the wider business view where an owner wage sits inside the cost base, use our sellers discretionary earnings calculator instead.

Rideshare and Delivery Driver Tax Calculator NZ 2026/27

Do I have to register for GST as an Uber, DiDi or delivery driver?

Not automatically. GST registration is only compulsory once your turnover from driving or delivering is, or is expected to be, more than $60,000 in any rolling 12-month period, the same threshold that applies to any other business, under section 51 of the Goods and Services Tax Act 1985. Below that you can register voluntarily, but most part-time and casual drivers are not registered and do not need to be.

Do I still pay GST if I'm not registered myself?

Yes, but you don't do anything about it. Since 1 April 2024, the online marketplace you drive or deliver for, such as Uber, Ola, DiDi, Uber Eats or DoorDash, must collect 15% GST on every listed service regardless of your own registration status. It pays 6.5% of that to Inland Revenue and passes the remaining 8.5% back to you as a flat-rate credit, which is yours to keep.

What is the 8.5% flat-rate credit?

It is the portion of the 15% GST collected on your fares or delivery fees that the marketplace passes back to you if you are not GST-registered. It is designed to recognise the GST built into your business costs, such as fuel and vehicle expenses, that you cannot otherwise claim back because you are not registered. You can choose whether or not to include the flat-rate credit as income in your IR3.

How much income tax will I pay on my driving profit?

Your driving profit, which is your fares or delivery fees minus your deductible vehicle, phone and other business costs, is added to any other income you have and taxed at New Zealand's 2026/27 marginal rates: 10.5% up to $15,600, 17.5% up to $53,500, 30% up to $78,100, 33% up to $180,000, and 39% above that. There is no separate flat rate just because it is platform or gig income.

Can I claim my vehicle running costs?

Yes, using either the IRD kilometre-rate method or the actual-cost method with a logbook, but you must pick one and use it consistently. Under the kilometre-rate method for the 2025-2026 income year, the business share of the first 14,000 km of the vehicle's total travel is claimed at the Tier One rate of $1.20 per km, and the business share of any travel beyond 14,000 km is claimed at the lower Tier Two rate of 37 cents per km. The rate already includes fuel, depreciation, insurance and servicing, so you do not separately claim those costs or adjust for GST on the vehicle.

Can I claim my phone bill?

Yes, to the extent it is used for driving or delivery work. If your phone and data plan is genuinely part business and part personal, you can only claim the business-use share, based on a reasonable estimate of how much you use it for the platform app compared with personal use. If you are GST-registered, you claim the GST-exclusive cost as your expense and recover the GST component separately through your GST return.

Do rideshare and delivery drivers pay ACC levies?

Yes. As a self-employed driver you pay your own ACC levies through an annual CoverPlus invoice rather than through PAYE. This includes the earner's levy, a flat 1.75% of your liable income for 2026/27 up to maximum liable earnings of $156,641, plus a work levy that depends on your classification unit, and a small Working Safer levy.

What happens once my tax bill passes $5,000 (provisional tax)?

If your residual income tax for a year, meaning the tax left owing after any tax already paid or deducted, is more than $5,000, you must pay provisional tax for the following year in instalments rather than as one lump sum. For a standard 31 March balance date the instalment dates are 28 August, 15 January and 7 May. This commonly happens once full-time driving income builds up, so it pays to plan for it early.

Salary to Contract Rate Calculator NZ 2026/27

How do I convert a salary to a contract day rate in New Zealand?

Add the employer KiwiSaver contribution and a self-employed ACC levy to the salary you want to match, since a contractor must fund both themselves. Then divide that grossed-up figure by the number of days you can realistically bill in a year, after subtracting unpaid annual leave, public holidays, sick leave and non-billable admin time. On an $80,000 salary with typical defaults, this works out to a day rate of about $452.

Why is a fair contract rate higher than salary divided by 260 working days?

Because a contractor is not paid for the days an employee still receives salary for: annual leave, sick leave and public holidays. A contractor also loses billable time to admin, invoicing, quoting and gaps between contracts. Dividing a target income by fewer actual billable days, rather than all 260 working days, gives a higher and more realistic day rate.

Does this calculator include GST?

No. The day rate, hourly rate and weekly rate shown are GST-exclusive. If your contracting turnover is likely to exceed $60,000 in a rolling 12-month period, you must register for GST and add 15% on top of this rate when you invoice. Use the GST Calculator to work out the GST-inclusive figure.

How many working days are there in a year in New Zealand?

This calculator uses 260 working days a year, a standard 5-day week multiplied by 52 weeks. From that, it subtracts annual leave, public holidays and sick leave, then applies a non-billable time allowance, to arrive at the number of days a contractor can actually invoice.

What ACC levy should a contractor budget for?

This calculator defaults to the 1.75% ACC earner's levy that applies to everyone, capped once liable earnings pass $156,641 a year. Self-employed people who are not also PAYE employees generally also pay an ACC Work levy set by their industry classification, which is not included here since it varies widely by occupation. Adjust the ACC field upward if you know your combined CoverPlus rate, or use the Self-Employed ACC Levy Calculator to work it out.

What is a reasonable non-billable time allowance for a contractor?

This calculator defaults to 15%, covering admin, invoicing, quoting, marketing and gaps between contracts. A contractor with a single long-term contract and little downtime might use 5% to 10%. Someone doing shorter engagements with more time spent finding the next contract might use 20% or more. Adjust it to your own experience.

How much more should I charge as a contractor than my old salary?

There is no single fixed percentage because it depends on your leave entitlements, your non-billable time and your ACC rate, but a commonly used rule of thumb in New Zealand is that contract income needs to run 25% to 40% above an equivalent salary to leave you no worse off once KiwiSaver, ACC, leave and downtime are all accounted for. This calculator works out the precise figure for your own numbers rather than relying on a rule of thumb.

Does this calculator account for KiwiSaver as a contractor?

It adds back the employer KiwiSaver contribution you would otherwise receive as an employee (3.5% by default from 1 April 2026), on the basis that a contractor who wants the same retirement saving must fund it themselves from their day rate. It does not model your own voluntary KiwiSaver contribution rate as a contractor, since that is a personal savings choice rather than an on-cost of contracting.

Side Hustle Income Tax Calculator NZ 2026/27

Do I have to pay tax on side hustle income in New Zealand?

Yes. Inland Revenue does not have a tax-free threshold for casual, hobby or side income. If you earn money from freelancing, selling goods, driving, renting out a room, or any other side activity carried out with an intention of profit, it is taxable from the first dollar. Side income is added to your main income and taxed at your marginal rate, not at a separate flat rate.

How much tax will I pay on my side hustle?

Your side hustle profit is taxed at your marginal rate, meaning the rate that applies to your top dollar of combined income once the profit is added on top of your main income. It is not necessarily the same rate you pay on your main job, because the extra income can push part or all of it into a higher tax bracket. This calculator finds the exact extra tax by comparing tax on your combined income with tax on your main income alone.

Do I pay ACC levies on side hustle income?

Usually yes. ACC's earner's levy of 1.75% for 2026/27 applies to your total liable income from all sources combined, up to a cap of $156,641. If your main job's PAYE already covers the levy on your salary, you can still owe additional earner's levy on your side income once you file, up to the combined cap. Self-employed side hustlers with no main job also pay a separate ACC work levy set by their industry classification, which is not covered by this calculator.

When do I need to register for GST on a side hustle?

Once your side hustle's turnover, meaning total sales, not profit, passes $60,000 in any rolling 12-month period, not just a calendar or tax year, you must register for GST with Inland Revenue under section 51 of the Goods and Services Tax Act 1985. You can also register voluntarily below that threshold. Once registered you must charge GST on your sales and file GST returns, but you can also claim GST back on your business expenses.

What expenses can I deduct from side hustle income?

You can generally deduct costs directly related to earning the side income, such as materials and stock, a portion of home office costs, business-related mileage at the IRD kilometre rate, software subscriptions, marketing, and platform or transaction fees. You are taxed on profit, income minus expenses, not on turnover, so keeping receipts and records is worthwhile.

Is my side hustle a hobby or a business for tax purposes?

Inland Revenue looks at factors such as whether you intend to make a profit, how regularly you carry out the activity, whether you operate in a business-like way, for example invoicing, marketing and record keeping, and the scale of the activity. A genuine one-off private sale, such as selling an old couch, is not taxable, but a repeated or organised activity carried out with an intention of profit generally is, even if it started as a hobby.

Do I need to file a tax return for side hustle income?

In most cases, yes. If your side income is not taxed at source, for example through PAYE or resident withholding tax, you will usually need to file an IR3 individual tax return to declare it and pay any tax owing. If your side income is subject to schedular payments with withholding tax deducted by the payer, you typically still need to file to reconcile the correct amount.

What happens if I do not declare side hustle income?

Inland Revenue receives information from banks, payment platforms and third parties, and can identify undeclared income. Not declaring side income can lead to back taxes, use-of-money interest, and shortfall penalties. It is far cheaper to set aside tax as you go than to face a bill with interest and penalties later.

US Withholding Tax on Dividends Calculator NZ 2026/27

How much US withholding tax do New Zealanders pay on dividends?

Fifteen percent where a valid W-8BEN form is on file claiming the United States and New Zealand tax treaty rate, and thirty percent where it is not. On the worked example, a US$40,000.00 holding yielding 1.80% pays a US$720.00 gross dividend. At the treaty rate US$108.00 is withheld; at the default rate US$216.00 is. The W-8BEN therefore keeps an extra US$108.00 in your account at the time of payment.

Is a W-8BEN worth filing?

It depends on your marginal tax rate, which is not what most guidance says. On the worked example, an investor on a 33% marginal rate pays $406.15 of total tax either way, because New Zealand gives a foreign tax credit for the US tax and the larger withholding simply produces a larger credit. An investor on 17.5% loses $153.85 a year without one, and on 10.5% loses $184.62. The form matters most to lower-rate taxpayers, which is the opposite of who usually hears about it.

Why does a higher withholding rate sometimes cost nothing?

Because New Zealand allows a credit for foreign tax paid on the same income, up to the New Zealand tax payable on it. On the worked example at a 33% marginal rate, New Zealand tax on the dividend is $406.15. A 15% withholding produces a $184.62 credit and $221.54 of New Zealand tax to pay. A 30% withholding produces a $369.23 credit and only $36.92 of New Zealand tax to pay. Both total $406.15. The tax was simply collected by a different government.

When is the foreign tax credit wasted?

When the US tax withheld exceeds the New Zealand tax payable on that income, because the credit is capped and the excess is not refunded. On the worked example at a 17.5% marginal rate, New Zealand tax is $215.38 while a 30% withholding is $369.23, so $153.85 of credit is wasted. That wasted amount is the genuine cost of not having a W-8BEN, and it only arises where your marginal rate sits below the withholding rate.

Do the FIF rules change how dividends are taxed?

Substantially. Where the total cost of your offshore shares exceeds the de minimis threshold of NZ$50,000, the foreign investment fund rules apply. Under the fair dividend rate method you are taxed on 5% of the opening market value of the holding regardless of what it actually paid, and actual dividends are generally not separately taxable. The withholding still happens at source, but there is no matching New Zealand dividend income for a credit to offset in the straightforward way described above, and the treatment becomes considerably more complex.

What is the FIF de minimis threshold?

NZ$50,000, measured by the original cost of your offshore shares rather than their current market value. Below it the FIF rules generally do not apply to an individual and dividends are taxed normally at your marginal rate. Above it they do. Because the test is on cost, a portfolio that has grown well can sit above $50,000 in value while remaining below the threshold, which surprises people. Our FIF de minimis calculator works through the test properly.

How do I file a W-8BEN?

Through your broker or platform rather than directly with the US tax authority. Most New Zealand platforms offering US shares prompt for it during account opening and handle the lodgement, and many will not let you trade US shares until it is complete. It expires and needs renewing periodically, typically after three years, and an expired form silently reverts your withholding to the default rate. That is worth checking if your dividends have shrunk without explanation.

Does withholding apply to capital gains as well as dividends?

No. The United States does not generally withhold tax on capital gains realised by a non-resident on listed shares, so selling at a profit does not trigger US withholding. Only the income distributions do. New Zealand tax treatment of the gain is a separate question that depends on whether you are on revenue account or whether the FIF rules apply, and neither of those is affected by the W-8BEN.

Company vs Personal Tax Crossover Calculator NZ 2026/27

What is the company vs personal tax crossover point?

It is the annual profit level above which retaining money in a company, taxed at a flat 28%, saves more tax than taking that same money personally as a sole trader, taxed at New Zealand's progressive rates up to 39%. Below the crossover, a company does not help and its running costs make incorporating a net cost.

Why does the crossover happen around $53,500 of profit?

New Zealand's personal tax brackets are 10.5% to $15,600, 17.5% from $15,601 to $53,500, then 30% from $53,501. Both rates below $53,500 sit under the flat 28% company rate, so retaining income there costs more tax, not less. Once profit passes $53,500, the marginal rate rises above 28%, and every extra dollar retained in a company starts to save tax instead. Your actual crossover point sits above $53,500 once your shareholder salary and company running costs are factored in.

Does the salary I choose affect my crossover point?

Yes. Your salary is taxed personally under either structure, so it is only the profit retained above your salary that can be sheltered at 28%. A higher shareholder salary pushes more of your income past the $53,500 pivot before any retention happens, which generally lowers the extra profit needed to reach your crossover point, provided the salary is a genuine, commercially realistic figure for the work you do.

What tax rate does a company pay in New Zealand?

New Zealand companies pay a flat 28% income tax rate on their profit, under the Income Tax Act 2007. There are no company tax brackets, unlike personal income tax, which is progressive and rises to 39% on income over $180,000.

Is the saving from being above my crossover point permanent?

No, it is a timing benefit while the profit stays in the company. Retained profit is taxed once at 28%. As soon as it is paid out to you as a dividend, imputation credits cover the 28% already paid, and you pay further personal tax if your marginal rate at that time is above 28%. The crossover shown here measures the saving in the year the profit is earned and retained, not what happens on eventual distribution.

What does this crossover calculation not cover?

It excludes ACC levies, the eventual top-up tax or wasted imputation credit when retained profit is later paid out as a dividend, and the attribution rule that can tax retained profit directly to the person who did the work in some personal-services businesses. It also assumes your shareholder salary is a genuine, commercially realistic figure.

Should I incorporate as soon as my profit reaches my crossover point?

Not automatically. The crossover point only measures the tax outcome in the year the profit is earned and retained. It does not account for the legal and accounting cost of setting up and running a company beyond the ongoing running-cost figure you enter, the attribution rule, or the tax you may eventually pay when retained profit is drawn out. Treat it as a planning signal and confirm the decision with an accountant.

Tax Refund Calculator NZ 2026

Where do I find my total income and PAYE deducted for the year?

There are three places. Your IR3 return for the year shows both figures if you file one. The year to date column on your last payslip for the tax year, the pay period ending on or before 31 March, shows gross earnings and PAYE for that employer. Or log in to myIR at ird.govt.nz, go to Income tax and open the Income summary for the year, which lists every employer and the tax deducted.

What if I do not know how much PAYE was deducted?

Switch the calculator to estimate mode, enter your gross salary and pick the tax code you were on, and it will estimate the PAYE that should have been deducted across the year. That is an estimate only, because your real deductions depend on how your pay was spread across pay periods, but it is close enough to show whether a refund is likely.

Why do I get a refund if I only worked part of the year?

PAYE is worked out on each pay as though you will keep earning at that rate for the whole year. If you worked seven months and then stopped, every pay was taxed as if it were part of a 12 month income, so too much tax came out. The end of year square-up compares your actual annual income against the tax deducted and refunds the difference.

Is the ACC earner levy refunded in my tax refund?

No. The ACC earner levy of 1.75 percent of liable earnings is collected alongside PAYE, but it is a levy and not income tax, so it is not part of the income tax square-up. It is capped at $156,641 of earnings, a maximum levy of $2,741.22. If you paid levy on earnings above the cap, ask ACC for a refund of the excess.

Is a tax return the same as a tax refund in New Zealand?

No. A tax return is a form you file; a tax refund is money you get back. Most New Zealand salary and wage earners never file a return at all, because Inland Revenue holds their employment income from payday filing and issues an automatic income tax assessment between late May and the end of July. You only file an IR3 if you had income IRD does not already know about, such as self-employment, rental or overseas income. If you searched for a tax return calculator and you are on wages or salary, the end-of-year square-up on this page is the figure you are looking for.

How many years back can I claim a tax refund in New Zealand?

Inland Revenue generally allows you to request an amendment or check an earlier assessment for the last four tax years. This calculator covers 2026/27, 2025/26, 2024/25 and 2023/24 so you can check each year in turn. Older years are usually out of time.

Can I claim a tax credit for donations?

Yes. You can claim 33.33 percent of donations of $5 or more made to approved donee organisations, with the total donations claimed limited to your taxable income. It is a separate claim made on an IR526 tax credit claim form, not part of the PAYE square-up, so it is paid on top of any income tax refund.

Annual Deductible Expenses Calculator NZ 2026

What business expenses can a sole trader claim in New Zealand?

The general test is whether the expense was incurred in earning your business income. That covers materials, tools, software, professional fees, business insurance, work travel, training that maintains your existing skills, and the business share of costs like your vehicle, phone and home office. Private expenditure is not deductible, and anything used for both purposes must be apportioned. Some categories have their own rules: entertainment is commonly limited to 50 percent, and capital items are usually depreciated rather than expensed in full.

How do I work out a business use percentage?

It must be reasonable and you must be able to explain how you reached it. A home office is commonly apportioned by floor area, a vehicle by a logbook covering a representative period, and a phone by an itemised sample of calls or data. The method matters more than the precision: an apportionment supported by a short written basis will survive review, and a round number with no working behind it is exactly what gets challenged.

Do I claim the GST-inclusive or GST-exclusive amount?

If you are GST registered, you reclaim the GST through your GST return and then deduct only the GST-exclusive amount for income tax. If you are not registered, there is no GST claim and you deduct the full GST-inclusive amount you paid. Doing both, claiming the GST and also deducting the GST-inclusive figure, relieves the same money twice and is a common error in self-prepared returns.

What is my expense claim actually worth?

It is worth the deductible total multiplied by your marginal tax rate, plus any GST reclaimed. Because the claim comes off the top of your profit it usually spans more than one tax bracket, so a single rate understates or overstates it. This calculator computes the tax on your profit with and without the claim and takes the difference, which is the only method that handles a claim crossing a bracket correctly.

Does claiming more expenses always leave me better off?

Claiming everything you are genuinely entitled to does. Spending money in order to create a claim does not, because you only recover your marginal rate of it and remain out of pocket for the rest. A deduction reduces the cost of something you needed; it never makes something you did not need free. The distinction matters most in the weeks before balance date, when the temptation to buy something for the claim is at its strongest.

NZ Body Corporate Cost Calculator 2026

What is a body corporate in NZ?

A body corporate is the entity automatically created when land is subdivided under the Unit Titles Act 2010. Every owner in the unit title development is a member. The body corporate owns and maintains the common property (driveways, lifts, shared roofs, exterior walls, gardens), manages insurance for the whole building, and collects levies from owners to fund operations and capital expenditure. Body corporates are mandatory for unit titles - you cannot opt out. They're governed by the Unit Titles Act 2010 and the Unit Titles Regulations 2011.

What is the capital fund and why is it mandatory?

The capital fund (sometimes called the long-term maintenance fund) is a required reserve to fund future major repairs and replacements - roof replacement, lift overhauls, repainting, membrane re-waterproofing, etc. The Unit Titles Act 2010 requires bodies corporate to have a 10-year long-term maintenance plan (LTMP) and adequate capital fund contributions to fund it. Levies to the capital fund are typically 20-40% of total annual levies, depending on building age and anticipated major works. Buildings with outdated LTMPs or underfunded capital reserves often face large special levies when major works become necessary.

What are special levies?

One-off levies charged when the capital fund is insufficient for a major expense, usually an unexpected or poorly-planned-for repair. Common triggers: leaky building repairs ($50,000-$500,000+ per unit), seismic strengthening (common for older Wellington buildings since the Kaikoura earthquake), fire safety upgrades, lift replacements. Always check the body corporate's LTMP, capital fund balance, and recent minutes before buying an apartment - a large special levy three months after purchase is a common unpleasant surprise. Special levies must be passed by ordinary resolution (25% of owners) and can sometimes be paid in instalments.

Are body corporate levies tax-deductible?

Yes, for investment and rental properties. Body corporate levies that relate to maintaining the common property are deductible against rental income in the same way council rates and insurance are. Capital fund contributions are also deductible as part of the levy. Special levies for major repairs that are capital in nature (e.g., replacing a roof) are NOT currently deductible for residential rentals because building depreciation is 0%, though they add to the cost base. Revenue-nature special levies (e.g., one-off maintenance) remain deductible. For owner-occupied main homes, body corporate levies are a personal expense and not deductible.

Do body corporates charge GST?

Generally no. Body corporates are typically treated as non-profit bodies for GST purposes and don't register for GST if their turnover is under $60,000 (or even if over, they can elect not to if they're genuinely non-profit). Most residential body corporates don't charge GST on levies. Larger mixed-use developments or commercial body corporates may be GST-registered, in which case levies include 15% GST. Investment property owners who are themselves GST-registered can claim GST on any body corporate levies that include it. Always check your annual AGM documents - they'll state whether the body corporate is GST-registered.

Contributory Conduct Remedy Calculator NZ 2026

What happens to my remedies if my own conduct contributed?

Since 21 February 2026, if your behaviour contributed to the situation that gave rise to the grievance, the Authority or Court cannot order reinstatement and cannot award compensation for hurt and humiliation or loss of any benefit. Reimbursement of lost wages remains available but may itself be reduced. This is a much sharper outcome than the previous approach, which reduced awards proportionally.

What counts as serious misconduct?

The Act does not define it, and the case law under the new provisions is still developing. It is generally understood to mean conduct that fundamentally undermines the employment relationship, such as theft, violence, serious dishonesty or a serious safety breach. Because the consequence is now the loss of every remedy, the line between contribution and serious misconduct matters far more than it used to and is genuinely uncertain at the moment.

Can remedies be reduced by 100 per cent?

Yes. Reductions of up to 100 per cent are available where an employee has contributed to the situation. That means a grievance can be established, the employer found to have acted unjustifiably, and the employee still receive nothing.

Does an employer still have to follow a fair process?

Yes. The changes affect remedies, not obligations. An employer who dismisses unfairly has still acted unjustifiably even if the employee contributed, and the grievance can still be established. What has changed is what the employee walks away with.

Who decides whether my conduct contributed?

The Employment Relations Authority or the Employment Court, on the evidence. They are now required to consider it rather than having a discretion, and to consider whether the behaviour obstructed the employer's ability to meet its fair and reasonable obligations.

Deduction Value Calculator NZ 2026

Does claiming an expense mean it costs me nothing?

No, and this is the single most common misunderstanding in self-employment. A deduction reduces your taxable income, it does not refund your money. If you spend $1,000 on a deductible item and your marginal rate is 33 percent, your income tax falls by $330 and your ACC earner levy by a further $17.50, so you are still around $650 out of pocket. Buying something you do not need in order to claim it always leaves you poorer than not buying it. The deduction makes a necessary purchase cheaper; it never makes an unnecessary one free.

How much is a deduction worth in New Zealand?

It is worth the deductible amount multiplied by your marginal tax rate. Because New Zealand rates are progressive, the same expense is worth different amounts to different people: $1,000 saves $105 for someone in the lowest band and $390 for someone above $180,000. This is why a deduction is more valuable the more you earn, and why the same receipt is worth almost four times as much to a high earner as to a low one.

What happens if a deduction takes me into a lower tax bracket?

The deduction is worth more than a single rate suggests, because it comes off the top of your income and can span two bands. If your profit sits just above a bracket boundary, the first part of the deduction is relieved at the higher rate and the remainder at the lower one. The calculator handles this by computing tax with and without the deduction rather than applying one rate, which is the only way to get a bracket-crossing claim right.

Is the GST claim part of the deduction?

No, they are two separate reliefs and confusing them causes double counting. If you are GST registered you claim the GST portion back through your GST return, and the income tax deduction is then based on the GST-exclusive amount only. If you are not registered, there is no GST claim and the deduction is based on the full amount you paid. Claiming the GST and also deducting the GST-inclusive figure would relieve the same money twice.

What if I only use the item partly for business?

Only the business share is deductible, and only that share of the GST is claimable. A laptop used 70 percent for work gives a deduction on 70 percent of its cost. The apportionment must be reasonable and you should be able to explain how you arrived at it, because it is exactly the sort of figure that gets tested if your return is reviewed. Keeping a short record of how the percentage was worked out is worth more than the precision of the number itself.

Income Volatility Calculator NZ 2026

What is income volatility and how is it measured?

Income volatility is how much your monthly income moves around its own average. The standard measure is the coefficient of variation: the standard deviation of your monthly income divided by the mean, expressed as a percentage. It allows someone earning $4,000 a month to be compared with someone earning $12,000, because it measures spread relative to size.

What is a normal volatility figure for a self-employed person?

Under 15 percent is close to salaried and unusual for self-employment. Between 15 and 30 percent is normal for regular contracting. Between 30 and 50 percent is common in project or trade work. Above 50 percent means the average month is close to meaningless as a planning figure and you should plan on the worst months instead.

Why is my average monthly income misleading?

Because you cannot spend an average. Bills arrive monthly and are not interested in what you earned across the year. If half your annual income lands in three months, budgeting against the average leaves nine months short and three flush, which is exactly the pattern that generates tax debt.

What is the smoothing reserve?

It is the total amount you would need to move from your good months into your bad ones to make every month equal to your average. It is a direct measure of the working capital your income pattern demands, and it is usually a much more useful number than a generic months-of-expenses rule.

Should I use income before or after business costs?

After business costs, because that is the money available to live on and to pay tax from. Using gross invoiced revenue will overstate every month and understate how tight the low months actually are.

Irregular Income Tax Smoothing Calculator NZ 2026

What percentage should I put aside for tax when self-employed in New Zealand?

There is no single correct percentage, because income tax in New Zealand is progressive. The rate that matters is your total tax and ACC for the year divided by your total gross income, and that ratio rises as you earn more. On the default figures in this calculator, $105,000 of gross income with $15,000 of expenses produces a reserve of about 20 percent of everything received. Someone on half that income would reserve noticeably less, and someone well into the 33 percent bracket noticeably more. Work it out from your own numbers rather than using a rule of thumb, because a rule of thumb is wrong for almost everyone.

Why does holding back a fixed percentage work when tax is progressive?

Because the percentage is calculated from the whole year, not from each payment. Progressive rates mean the tax on your last dollar is higher than on your first, but the total is a single number, and dividing that total by your total income gives one ratio that holds every payment to its fair share. Reserving a flat percentage of each payment therefore reaches exactly the right amount by the end of the year. The risk is not the method, it is the estimate: if you earn much more than you projected, the ratio you have been using is too low.

Is tax charged on what I receive or on my profit?

On your profit, which is your gross income less your deductible business expenses. This is why the reserve percentage is expressed against gross income rather than profit: the money arriving in your account is gross, so a percentage of gross is what you can actually apply as each payment lands. The calculator works out the tax on profit and then converts it back to a share of gross so you have one number to use.

What is the buffer figure and why do I need one?

The buffer is the largest cumulative shortfall you run during the year if you pay yourself the same amount every month. Lumpy income means some months bring in less than your steady draw, and the buffer is what covers those months until a strong month refills it. It is separate from your tax reserve and must not be taken from it. On the default figures the shortfall peaks in the fifth month, which is the point at which a run of quiet months has drained the surplus built earlier.

Does this replace provisional tax planning?

No. This tool tells you how much to set aside and when you will have it. Provisional tax governs when Inland Revenue expects that money to be paid, which is usually in instalments through the year rather than in one lump at the end. Reserving the right amount and paying it at the right time are two separate problems, and being right about the first does not protect you from being late on the second.

Late Payment Cost Calculator NZ 2026

What does late payment actually cost a small business?

The direct cost is financing. Money owed to you is money you have already earned and spent time producing, and while it sits unpaid you fund the gap from an overdraft, savings, or your own pocket. On the default figures, a business invoicing $120,000 a year on 20 day terms that is actually paid in 45 days is carrying an extra $8,219.18 of working capital, which at a 12 percent cost of money is $986.30 a year. There are indirect costs too, in time spent chasing and in the work not done while chasing, which this calculator does not attempt to price.

Why does tax make late payment worse for the self-employed?

Because tax is charged on income when it is earned, not when the cash arrives. If you invoice in March and are paid in May, the income belongs to the earlier tax year and the tax on it can fall due before the client has paid you. Reserving against invoices as they are issued rather than as they are paid protects you from this, but it also means the reserved money is sitting aside for income you have not received, which is a second call on the same working capital.

Can I charge interest on overdue invoices in New Zealand?

You can if your terms of trade provide for it and the client agreed to those terms before the work began. A right to charge interest that first appears on the overdue invoice itself is generally not enforceable, because it was never part of the agreement. Whether to actually charge it is a commercial judgement rather than a legal one; many businesses set the term so that the option exists and waive it in practice, which is easier than negotiating it after the event.

Is it worth offering a discount for early payment?

Compare the discount against the financing cost this calculator shows. A 2 percent discount to be paid 25 days sooner is an implied annual rate of roughly 29 percent, which is far more expensive than almost any overdraft. Early payment discounts are usually a poor deal for the person offering them, and they are worth using only when the cash is needed urgently rather than as a standing policy.

What is the single most effective thing to change?

Invoicing sooner. The delay you control completely is the gap between finishing the work and issuing the invoice, and for many sole traders it is longer than the delay the client adds. Nothing about the client relationship has to change and no conversation is required. Shortening stated terms and following up promptly both help, but they involve other people; issuing the invoice on the day the work finishes does not.

Leaving PAYE Mid-Year Tax Calculator NZ 2026

Why do I get a refund if I leave a job part way through the year?

Because PAYE is deducted on the assumption that your current pay rate continues for the whole year. Each pay period is taxed as one slice of an annual salary, so the higher brackets are applied throughout. If you stop earning after five months you have only used part of your lower brackets, and the tax deducted is more than the tax actually due on what you earned. That overpayment comes back at the end of the tax year. The refund is not a bonus; it is the correction of an assumption that turned out to be wrong.

Will my self-employed income wipe out that refund?

Usually, and often more than wipe it out. Self-employed profit stacks on top of the salary you already earned, so it fills the brackets your salary did not reach and is taxed at whatever rate applies after the salary. Because no tax has been deducted from it at all, the whole liability on that profit falls due at once. This calculator shows the exact profit figure at which your refund becomes a bill, which for most people is a smaller number than they expect.

What is residual income tax and why does it matter?

Residual income tax is your income tax for the year after subtracting tax credits, including the PAYE already deducted from your salary, but before any provisional tax you have paid. It matters because it is the figure the provisional tax test is applied to: if it is more than $5,000 for a year, you are a provisional taxpayer for the next one. Someone who spent most of the year on PAYE often has a large tax liability but a small residual income tax, because the PAYE credit absorbs most of it, and that is why the test catches fewer mid-year leavers than people assume.

Is ACC included in my tax bill?

No, and confusing the two is a common cashflow mistake. While you were on PAYE the ACC earner levy came out with your tax and you never saw it separately. Once you are self-employed, ACC invoices you directly for the earner levy plus the work levy and Working Safer levy that an employer used to pay. That invoice arrives from ACC, not Inland Revenue, on its own timetable, and it is not part of the square-up shown here. This calculator reports it separately for that reason.

When is the tax actually due?

For a standard 31 March balance date, terminal tax is due on 7 February following the end of the tax year, or 7 April if you are linked to a tax agent with an extension of time. That is a long gap after the income was earned, which is exactly why the money is usually gone by the time the bill arrives. If the year also makes you a provisional taxpayer, the following year brings instalments on top of that terminal tax, so the twelve months after you file can carry close to two years of tax.

NZ Pay Rise Calculator 2026

How much of a $5,000 pay rise do I actually keep in NZ?

It depends on your current salary and deductions. For someone earning $65,000 (in the 30% PAYE bracket), a $5,000 gross pay rise results in approximately $3,238 extra take-home per year after PAYE (30%), ACC (1.75%), and KiwiSaver (3.5%). That is about $62 extra per week. With a student loan, an additional 12% of the rise is deducted ($600), reducing extra take-home to approximately $2,638 per year.

What is the marginal tax rate in NZ?

Your marginal tax rate is the rate you pay on the next dollar you earn. In NZ for 2026/27: 10.5% up to $15,600, 17.5% up to $53,500, 30% up to $78,100, 33% up to $180,000, and 39% above $180,000. Your marginal rate determines how much of a pay rise you keep. Add ACC (1.75%) and KiwiSaver (3.5%) and your effective marginal deduction rate is higher.

Does a pay rise push me into a higher tax bracket?

NZ uses progressive tax brackets, meaning only the income within each bracket is taxed at that rate. A pay rise that crosses a bracket boundary only taxes the portion above the threshold at the higher rate. For example, if you earn $53,000 and get a $5,000 rise, the first $500 is taxed at 17.5% and the remaining $4,500 at 30%. You never lose money by earning more.

Should I negotiate salary or KiwiSaver for my pay rise?

If your employer offers to increase their KiwiSaver contribution instead of salary, the contribution is taxed at your ESCT rate (which matches your marginal tax bracket) but you avoid ACC levy on it. However, you cannot access KiwiSaver funds until age 65 (or first home). A salary increase gives you immediate spending power. The best option depends on your financial goals.

How does a pay rise affect my student loan repayments?

Student loan repayments are 12% of every dollar earned above the annual threshold of $24,128. A pay rise increases your student loan repayments by 12 cents for every additional dollar earned. For a $5,000 rise, that is $600 per year or about $11.54 per week in additional student loan repayments.

NZ PAYE Calculator 2026/27

What are the NZ PAYE tax rates for 2026/27?

The NZ PAYE rates for the 2026/27 tax year are: 10.5% on income up to $15,600, 17.5% from $15,601 to $53,500, 30% from $53,501 to $78,100, 33% from $78,101 to $180,000, and 39% on income above $180,000.

What is the ACC earner's levy rate for 2026/27?

The ACC earner's levy is 1.75% of gross income for the 2026/27 year, capped at $156,641 of earnings (1 April 2026 to 31 March 2027).

What is the minimum KiwiSaver contribution rate?

From 1 April 2026, the minimum KiwiSaver employee contribution rate rose to 3.5% for new enrollees. Available rates are 3%, 3.5%, 4%, 6%, 8%, or 10% of gross income. Employers must contribute a minimum of 3.5%.

What is the Independent Earner Tax Credit (IETC)?

The IETC is a tax credit of up to $520 per year for NZ tax residents earning between $24,000 and $70,000. The full $520 applies between $24,000 and $66,000, then abates by 13 cents per dollar earned above $66,000.

When does the NZ student loan repayment start?

NZ student loan repayments start once your annual income exceeds $24,128 for the 2026/27 year. The repayment rate is 12 cents per dollar earned above this threshold.

NZ PAYE Due Dates Calculator 2026/27

When does an NZ employer have to pay PAYE?

It depends on your annual PAYE and ESCT total. Small employers with PAYE plus ESCT of $500,000 or less per year pay monthly, with PAYE due on the 20th of the following month (e.g. March PAYE is due 20 April). Large employers with PAYE plus ESCT over $500,000 per year pay twice-monthly: PAYE for pay dates 1-15 is due on the 20th of the same month, and PAYE for pay dates 16-end of month is due on the 5th of the next month. If a due date falls on a weekend or public holiday, it shifts to the next working day.

What is payday filing?

Payday filing has been mandatory for all NZ employers since 1 April 2019. Rather than filing one employer monthly schedule (EMS) once a month, employers must now file payday information to IRD every time they pay staff. Electronic filers must submit within 2 working days of each payday. Paper filers must submit within 10 calendar days. The filing is separate from the payment - you still pay on the 20th (or twice-monthly dates for large employers), but the filing happens on each payday.

What is the late filing penalty for PAYE?

Non-payment penalties apply at 1% of the unpaid PAYE the day after the due date, then an additional 4% seven days after the due date. Interest accrues at the IRD use-of-money interest debit rate (currently 10.88% from 8 May 2025). Late filing penalties apply separately for payday filing: $250 if your gross earnings for the period are under $500,000, and $500 if $500,000 or more. These are per filing. Repeated late filing can escalate.

How is the $500,000 threshold measured?

The threshold is based on your PAYE plus ESCT deductions in the previous 12 months (not gross wages - just the deductions sent to IRD). If your total PAYE + ESCT withheld was $500,000 or less, you're a monthly payer for the current year. Over $500,000 moves you to twice-monthly. The threshold was raised from $100,000 to $500,000 effective 1 April 2017 to reduce compliance burden. New employers start as monthly payers and move to twice-monthly if they cross the threshold.

What happens if a due date falls on a weekend or public holiday?

The due date shifts to the next working day. For example, if 20 April falls on a Saturday, the PAYE due date becomes Monday 22 April. If 5 January falls on a Sunday and the 6th is a public holiday, the due date becomes Tuesday 7 January. This rule applies to both monthly and twice-monthly payment dates, and to payday filing deadlines. IRD's online payment system reflects the adjusted date automatically.

NZ PAYE Square-Up Calculator

What is a PAYE square-up in New Zealand?

A PAYE square-up is the year-end reconciliation where IRD compares the total PAYE (plus ACC earners' levy) deducted from your wages through the year with your actual tax liability based on your total annual income. If too much was deducted (because PAYE assumes you will earn at that rate all year and you didn't), you get a refund. If too little was deducted (multiple jobs, bonuses not fully taxed, secondary code mismatch), you owe a bill. IRD automatically does this square-up for most employees after 31 March each year and issues an auto-calculation notice.

What is residual income tax (RIT)?

Residual income tax is the tax you owe at year end after subtracting PAYE withheld, WT on schedular payments, RWT on interest, and other tax credits. If your RIT is over $5,000, you become a provisional taxpayer for the following year and must pay provisional tax in instalments (typically three per year on 28 August, 15 January, and 7 May). If RIT is under $5,000, you simply pay the balance by 7 February (or 7 April if you use a tax agent).

When do I have to file an IR3 return?

You must file an IR3 if you have any income that wasn't fully taxed at source. This includes: self-employed or contractor income, rental income, overseas income, capital gains subject to the bright-line test, dividends from overseas shares, or business income. Most wage earners with only PAYE income don't need to file an IR3 and receive an automatic assessment instead. If you're not sure, you can check your myIR account or use IRD's filing requirement tool.

Is there a write-off threshold for small tax bills?

Yes, but it only applies to tax you owe, never to refunds. Inland Revenue automatically writes off tax to pay of $50 or less when it issues an automatic income tax assessment, which keeps small rounding differences out of the system. If your bill is more than $50 you must pay it by 7 February, or 7 April if you use a tax agent. People who file an IR3 do not get the automatic write-off. Refunds are never written off for being small: if the square-up shows you overpaid, Inland Revenue pays the money into the bank account it holds for you.

Why might my PAYE be under-withheld?

Common reasons: (1) Two or more jobs where the secondary tax code bracket is lower than your actual combined marginal rate. (2) A bonus or commission that annualised higher than your regular pay. (3) Receiving Working for Families payments and ME code at the same time (you cannot get both). (4) Switching jobs mid-year and each employer treating their portion as though it were your full annual income (under-withholding at the lower brackets twice). (5) Receiving taxable investment income (interest, dividends) where RWT is at a lower rate than your marginal rate.

Payment Terms Comparison Calculator NZ 2026

What does the 20th of the month following mean in New Zealand?

It means every invoice dated in a given month is paid on the 20th of the next month. An invoice issued on the 1st waits about 50 days, one issued on the 30th waits about 20 days, so across a month of steady invoicing the average is roughly 35 days. It is the most common trade term in New Zealand.

Why is the 20th of the month following worse than 30 day terms?

On average it is not far off, but it is far less even. Work invoiced early in a month waits much longer than work invoiced late, so the cash arrives in one lump each month rather than steadily. For a sole trader with weekly outgoings that unevenness matters more than the average.

Are shorter payment terms always better?

Financially yes, commercially not always. Shorter terms release working capital and cut financing cost, but some clients will not accept them and larger organisations often pay on their own cycle regardless of what your invoice says. The value of tightening terms is only real if clients actually comply.

Can I charge interest on overdue invoices in New Zealand?

Only if your terms of trade said so and the client agreed to them before the work started. There is no automatic statutory right to interest on late commercial payment in New Zealand, unlike some other countries.

Does invoicing sooner help more than shorter terms?

Usually. The gap between finishing work and issuing the invoice is entirely within your control and needs no negotiation, whereas changing terms is a commercial conversation. A week of invoicing delay costs exactly as much as a week of client delay.

Percentage Fee vs Fixed Fee Calculator NZ 2026

Is a percentage fee or a fixed fee cheaper for a sole trader?

It depends entirely on your income, and the crossover is easy to find. A percentage fee costs more as you earn more, while a fixed fee does not move, so there is always one income at which they cost the same. Below it the percentage is cheaper; above it the fixed fee is. On the default figures, 1 percent against a $2,000 fixed quote crosses at $200,000 of income. If the percentage fee carries an annual cap, the comparison changes again above the cap, because the percentage stops growing.

How does an annual cap change the comparison?

A cap turns a percentage fee into a fixed fee above a certain income. Once the cap binds, the fee stops rising no matter how much more you earn, so the effective rate falls continuously. That means a capped percentage fee can be cheaper than a fixed fee at low incomes and cheaper again at very high ones, while being more expensive only in the middle. The calculator shows where the cap starts to bind so you can see which part of the curve you sit on.

Does GST registration change what the fee costs me?

Yes. If you are GST registered you claim the GST on the fee back, so the real cost is the GST-exclusive amount. If you are not registered, and most people under the $60,000 turnover threshold are not, the GST is a genuine cost and the fee is effectively 15 percent more than the headline. This is a real difference that the advertised price never shows, and it matters most to the smallest operators.

Is an accounting fee tax deductible in New Zealand?

Fees for managing your business tax affairs are ordinarily deductible as a business expense, which means the real cost is lower than the invoice. The saving is the fee multiplied by your marginal tax rate, so someone in the 33 percent band recovers a third of it through a reduced tax bill. This calculator shows the after-tax cost of both options, because comparing headline prices when both are deductible overstates the gap between them.

Should I just pick whichever is cheaper?

Only if the two options genuinely do the same work. A percentage fee that includes tax payments, filing, expense management and support is not comparable to a fixed fee covering an annual return alone, and the difference in scope usually matters more than the difference in price. Use this to establish the cost gap, then decide whether what the more expensive option adds is worth that gap to you.

NZ Property Rates & Insurance Calculator 2026

How much are council rates in New Zealand?

Council rates vary significantly by region and property value. 2026 averages: Auckland approximately $4,500, Wellington $4,200, Christchurch $3,200, Hamilton $3,400, Tauranga $3,900, Dunedin $3,500, Queenstown Lakes $4,800, and rural / smaller councils typically $2,900-$3,300. Your actual rates depend on your property's capital value (or land value, depending on council), the council's annual budget, and any targeted rates for specific services like water, waste, stormwater, or transport. Rates typically increase 3-8% per year.

What is the EQC levy?

The Natural Hazards Insurance (formerly Earthquake Commission) levy funds New Zealand's natural disaster insurance scheme. From 1 October 2024, the rate is 20 cents per $100 of cover on residential property, with a maximum levy of $480 on $240,000 of cover. Above $240,000 of insured value, no additional EQC levy applies - private insurance covers the rest. The levy was increased from the previous $276 maximum (at $150,000 cover) to reflect the higher cost of post-earthquake claims. GST is added on top of the levy. The levy is automatically included in your home insurance premium.

How much does home insurance cost in NZ?

Home insurance costs depend on location, construction type, age of building, sum insured, and claim history. Typical 2026 ranges for a standard house: $1,800-$4,000 per year. Wellington and Canterbury tend to be higher due to seismic risk; Auckland apartments often lower due to body corporate coverage. All NZ home insurance must use 'sum insured' basis (stated total you're covered for) rather than replacement cost - you nominate a figure based on a valuation. Under-insurance is the single biggest claim risk. Get a professional rebuild valuation every 5-7 years and update the sum insured at each renewal.

Do I need contents insurance?

Not legally required, but strongly recommended. Contents insurance covers your possessions (furniture, appliances, clothes, electronics, jewellery) against theft, fire, flood, and other insured events. Cost is typically $300-$800 per year for standard household contents. Most people significantly underestimate their contents value - walk through every room and add up replacement costs; you'll likely be surprised. For rental properties, tenants arrange their own contents insurance; landlords arrange building and landlord liability cover.

What is landlord insurance?

Specialist insurance for residential rental property owners that covers malicious damage by tenants, rent defaults, legal liability claims, and landlord-specific contents (chattels you own at the property). Typical cost: $500-$1,200 per year on top of standard home insurance. Not strictly required but most investors carry it. The cost is tax-deductible against rental income. For investment properties, your insurance typically costs $2,500-$5,000 per year total (building + landlord + natural hazards), all deductible against rental income.

NZ Schedular Payments Calculator

What is a schedular payment in NZ?

A schedular payment is a payment to a contractor (not an employee) for an activity listed in Schedule 4 of the Income Tax Act 2007. The payer must withhold tax at the rate specified for that activity and pay it to IRD on the contractor's behalf. Common examples include company directors' fees (33%), commission (20%), entertainers (20%), and most other Schedule 4 activities (20%). The contractor includes the gross payment in their income tax return and claims the WT as a tax credit.

Can a contractor choose their own withholding rate?

Yes. Contractors can elect a 'nominated rate' between 10% and 40% via the IR330C form. This is useful if the standard schedular rate is too low (causing year-end tax bills) or too high (tying up cash flow). The minimum nominated rate is 10% (15% for non-resident contractors), and certain individuals such as labour-hire contractors must use a minimum rate. If you don't nominate a rate, the standard rate for your activity applies.

How does GST interact with schedular payments?

WT is calculated on the GST-EXCLUSIVE portion of the payment. If you invoice $1,150 including GST, the payer withholds tax on $1,000 (the GST-exclusive amount). The $150 GST is paid to the contractor in full (the contractor accounts for it in their GST return). Many systems handle this automatically: the contractor invoices a gross amount, the payer deducts GST mentally, withholds WT on the net, and pays the contractor the GST plus the post-WT net.

What if I don't provide an IR330C form?

If you don't complete an IR330C form (or don't provide an IRD number), the payer must withhold tax at the no-notification rate of 45%. This is the highest possible withholding rate and applies to ALL of your schedular payments until you submit a valid IR330C. For most contractors, you'll be significantly over-taxed at this rate and have to wait until you file your tax return at year-end to get the excess back.

Are companies subject to schedular payment rules?

Generally no. Payments to NZ-resident companies are exempt from schedular payment rules unless the company is one of: a non-resident contractor, a non-resident entertainer, or a labour-hire firm. This is one reason why many contractors operate through limited companies. However, payments to look-through companies (LTCs) and partnerships ARE subject to schedular payment rules if the underlying activity is listed in Schedule 4.

Service Fee True Cost Calculator NZ 2026

Two separate reliefs apply. If you are GST registered you reclaim the GST on the fee through your GST return, so that portion never really costs you anything. What remains is ordinarily deductible against your business income, so it reduces your taxable profit and therefore your tax bill by the amount of the fee multiplied by your marginal rate. A $1,500 fee at a 33 percent marginal rate leaves a registered business $1,005 out of pocket, and that figure is the one worth comparing between providers.

Does it matter whether the advertised fee includes GST?

It matters a great deal, and it is the most common way two quotes are misread against each other. A fee advertised as $1,500 plus GST is $1,725 to actually pay, while one advertised as $1,500 including GST is $1,304.35 before GST. For a registered business the GST washes out either way, so the comparison is between $1,500 and $1,304.35. For an unregistered one the comparison is between $1,725 and $1,500. The direction of the difference reverses depending on your registration, which is why the setting exists here.

Is the deduction worth the same to everyone?

No. The deduction is relieved at your marginal rate, so the same fee costs a low earner more in real terms than a high earner. A $1,500 fee costs $1,342.50 at a 10.5 percent marginal rate and $915.00 at 39 percent. This runs opposite to intuition: the service that looks affordable relative to a large income is also the one that is subsidised most heavily by the deduction.

Should I choose a service based on its real cost?

Use real cost to compare like with like, but not to decide on its own. Both fees being compared are usually deductible, so the deduction narrows the gap between them without changing which is cheaper. What it does change is how much the difference actually matters: a $500 gap in headline price is a $335 gap in real cost at a 33 percent rate, which may be small next to a difference in what the two services include.

Are all business service fees deductible in New Zealand?

Fees incurred in earning your business income, including fees for managing your tax affairs, are ordinarily deductible. Private expenditure is not, and a fee covering both business and private matters must be apportioned. Some categories, entertainment being the clearest example, have their own limits. If a fee is only partly business related, enter only the business share here.

NZ Subdivision Tax Calculator 2026

When does a subdivision trigger income tax?

Three main rules in the Income Tax Act 2007 can catch subdivision income. Section CB 12 catches sales within 10 years of acquisition if work done on the land is 'more than a minor amount'. Section CB 13 catches any subdivision scheme involving development or division work, regardless of timing. Section CB 14 catches sales within 10 years of rezoning where the rezoning contributed 20% or more to the total value uplift. The bright-line test (section CB 6A) is a fourth rule that can catch the original land even before subdivision. Even if you avoid all four rules, a general 'purpose of resale' intention test (section CB 6) can still apply.

What counts as minor work for section CB 12?

The test is a ratio of work costs against the total value of the land. IRD generally considers work under about 5% of the land's value to be minor, though this is subjective. Simply getting council consent, lodging a survey, and creating titles is usually considered minor. But if you install roading, stormwater, sewerage, power, water, or other services (typical for creating separate building sites), this almost certainly crosses into 'more than minor' territory and the sale will be taxable under section CB 12 if within 10 years of acquiring the land.

What is a subdivision scheme under section CB 13?

Section CB 13 catches any 'undertaking or scheme involving the development or division into lots of land' that results in a sale, regardless of the 10-year timeframe. The key word is 'scheme' - essentially anything more than a bare-minimum title split. Adding services, building houses on the sections, or developing anything on the land triggers this section. Section CB 13 has no time limit - it can apply to subdivisions of land held for 30+ years. The main relief is the residential exclusion (section CB 17), which protects your own main home if the scheme doesn't involve a significant building or development.

What is the rezoning rule in section CB 14?

If land is sold within 10 years of a rezoning (e.g., rural to residential, or residential to mixed-use commercial) and the rezoning contributed 20% or more to the total value uplift, the gain attributable to the rezoning is taxable. This catches people who bought rural-zoned land, waited for city growth boundaries to expand or zoning changes, and sold once the land was worth substantially more due purely to the council decision. Only the rezoning-attributable portion of the gain is taxed, not the entire capital gain.

Can I subdivide my main home without tax?

Possibly. Section CB 17 provides a residential exclusion from section CB 13 (scheme rule) for your main home, provided no significant building or development occurred as part of the scheme. Section CB 12 (minor subdivision within 10 years) may also have a residential exclusion in limited cases. Bright-line test main home exclusion rules apply to the property you retain. However, if you're doing substantial development (e.g., subdividing off the back section and building a new house for sale), you're likely to be caught by section CB 13 regardless of the residential exclusion. Get tax advice before starting any subdivision of your main home.

Tax Admin Time Cost Calculator NZ 2026

Is my admin time really worth my charge-out rate?

Only the portion that displaces work you could have sold. If you are fully booked and doing admin on Sunday evening, the hour costs you a Sunday evening rather than lost revenue, and valuing it at your full rate overstates the case. If you turn work away or finish jobs later because of admin, the rate is exactly right. The recoverable share input exists so you can be honest about which situation you are in, and setting it below 100 percent is the realistic answer for most people.

How many hours does tax admin actually take a sole trader?

It varies enormously with how organised the system is rather than with the size of the business. The defaults here assume weekly invoicing and chasing, a monthly pass at expenses and receipts, two-monthly GST returns and an annual return, which comes to a little over a hundred hours a year. Someone with a clean system and few transactions will spend far less; someone reconstructing a year of receipts in one weekend will spend more, and will make more mistakes doing it.

What is the break-even rate?

It is the charge-out rate at which the value of the hours saved exactly equals the real cost of the service. Above that rate, paying someone releases time worth more than it costs; below it, doing the work yourself is cheaper. Because the service fee is deductible and the GST is reclaimable for a registered business, the break-even rate is lower than dividing the headline fee by the hours would suggest.

Does paying for a service really remove all the hours?

No, and assuming it does is the main way this comparison gets overstated. You still photograph receipts, still answer questions, still check what has been produced. What a service typically removes is the calculation, the filing, the payment deadlines and the chasing. The hours removed input lets you model the realistic share rather than assuming the whole burden disappears, and being conservative there gives a comparison you can rely on.

What about the value of not thinking about it?

It is real and this calculator does not attempt to price it. Missed deadlines carry penalties and interest, a tax bill that arrives unfunded can cost far more than any fee, and the mental load of an unresolved obligation has a cost that never appears in an hours calculation. Treat the figure here as the floor of the argument rather than the whole of it.

NZ Tax Code Picker

What is the difference between M and ME tax codes in NZ?

M is the standard primary tax code. ME is M plus the Independent Earner Tax Credit (IETC), which gives you up to $520 per year extra in your take-home pay. ME applies if your annual income is between $24,000 and $70,000 AND you don't receive Working for Families, a main benefit, NZ Super, or an overseas equivalent. The IETC is fully available up to $66,000 income and abates by 13c per dollar above that, phasing out at $70,000.

What happens if I don't provide a tax code?

If you don't provide an IR330 form (or your IRD number) to your employer, they must deduct PAYE at the no-notification rate of 45% on every dollar of your wages. This is the highest possible PAYE rate and will leave you significantly under-paid each pay period. Always complete an IR330 with your correct code as soon as you start a new job.

Which secondary tax code should I use for my second job?

Your secondary tax code depends on your TOTAL expected annual income from all jobs. SB applies if total income is under $15,600. S applies if total is $15,601 to $53,500. SH applies if total is $53,501 to $78,100. ST applies if total is $78,101 to $180,000. SA applies if total is over $180,000. The threshold is your total income, not just the secondary job's income.

Do I need an SL suffix on my tax code?

Yes, if you have an active New Zealand student loan and earn above the repayment threshold ($24,128 for the 2026/27 tax year). Add SL to your primary code (M SL or ME SL) so 12% of every dollar above the threshold is automatically deducted as student loan repayment. For secondary jobs with an SL suffix (S SL, SH SL, etc.), 12% is deducted from EVERY dollar of secondary income because the threshold is already used by your main job.

Can I use the ME code if I receive Working for Families?

No. The Independent Earner Tax Credit (IETC) and Working for Families Tax Credits (WFF) cannot be received at the same time. If you currently receive WFF, use the M code (or M SL with student loan). If you stop receiving WFF, you can switch to ME if you also meet the income criteria. The same exclusion applies to recipients of main benefits and NZ Super.

Unpaid Wages Checker NZ 2026

Is wage theft a crime in New Zealand?

Yes. Since 14 March 2025, under the Crimes (Theft by Employer) Amendment Act 2025, an employer who intentionally and without reasonable excuse fails to pay money owed to an employee can be charged with theft under the Crimes Act 1961. Where the amount exceeds $1,000 the maximum penalty is seven years imprisonment. It requires intention, so a genuine payroll error is not a crime.

What is the minimum wage in New Zealand?

From 1 April 2026 the adult minimum wage is $23.95 an hour, and the starting-out and training rates are both $19.16 an hour. The minimum applies to every hour actually worked, so unpaid trial shifts, unpaid training and time spent opening or closing all count.

How long do I have to claim unpaid wages?

A claim for wage arrears can generally reach back six years, which is much longer than the 90 day window for raising a personal grievance. Unpaid wages are a debt rather than a grievance, so the short grievance deadline does not apply to them.

Who do I complain to about unpaid wages?

Start by putting it in writing to your employer, because many cases are genuine errors and are fixed at that point. If that fails, contact Employment New Zealand, which can arrange free mediation. The Labour Inspectorate investigates minimum wage, holiday pay and record-keeping breaches and can act without you going to a hearing. The Employment Relations Authority determines claims that do not settle.

Can my employer deduct money from my wages?

Only with your written consent for that deduction, or where it is required by law such as PAYE and child support. Under the Wages Protection Act 1983 an employer cannot make deductions for till shortages, breakages, customers who leave without paying, or uniforms unless you have specifically agreed in writing, and even then the deduction must be reasonable.

NZ Wage Subsidy Eligibility Checker 2026

What is the Flexi-Wage subsidy in NZ?

Flexi-Wage is a Work and Income (MSD) programme that provides a wage contribution to employers who hire people who are disadvantaged in the workforce or at risk of long-term benefit receipt. The employer receives a total of $5,638.68 (including GST) over 24 weeks, or $11,277.36 (including GST) over 36 weeks, depending on the level of support the employee needs. The subsidy is claimed every 4 weeks. The programme also includes training and ongoing support. The job must continue after the subsidy ends. Employers must contact Work and Income before the employee starts work.

Who is eligible for Flexi-Wage?

Job seekers who have difficulty getting or keeping a job are eligible for Flexi-Wage. This includes people who need training or upskilling, those at risk of long-term unemployment, people with health conditions or disabilities, young people (16-24) at risk of becoming NEET, and people leaving corrections. The job seeker does not need to be currently receiving a benefit to be eligible. The employer must pay at least the minimum wage, the job must be genuine and ongoing, and the employer must not have dismissed someone to create the position.

What is Mana in Mahi?

Mana in Mahi (Strength in Work) is a Work and Income programme that supports people into work-based training leading to an industry-recognised qualification. It is aimed at people aged 18 to 24, those who have been on a main benefit for at least 6 months, and Maori and Pasifika who are at risk of long-term unemployment. The programme includes a wage subsidy for up to 52 weeks, pastoral care funding of up to $2,000 for the employer, and support for training costs. The role must include structured training towards a recognised qualification.

Can I get Flexi-Wage for self-employment?

Yes. Flexi-Wage for Self-Employment provides a weekly payment while you establish a new business. The subsidy covers up to 30 hours per week at up to minimum wage for up to 52 weeks. You must have a viable business plan approved by Work and Income, be disadvantaged in the job market, and be ordinarily resident in New Zealand. You cannot use it to restart a business you previously owned or to support an existing established business that is struggling. A start-up grant of up to $10,000 may also be available for essential business costs.

Does the employer or the employee apply for Flexi-Wage?

The employer must contact Work and Income before the employee starts work. If the employer has someone specific in mind, Work and Income will assess whether that person meets the eligibility criteria. If the employer does not have a specific candidate, Work and Income can help find suitable candidates. The subsidy is paid to the employer (not the employee), and the employer is responsible for claiming it every 4 weeks. The employee must be paid at least the minimum wage for all hours worked.

NZ Charitable Donation Tax Rebate Calculator 2026

Do I need to keep receipts to claim the donation tax credit?

Yes. You need a receipt or acknowledgement from each charity showing your name, the amount, and the date for each qualifying donation. Most charities issue these automatically when you donate online or set up a regular payment. Keep these receipts until your claim is processed. IRD may ask to see them if they review your claim.

Can I claim for cash donations to a collection tin?

No. Cash donations where you do not receive a receipt with your name on it cannot be claimed. The requirement for a receipt proving the donation was made by you is essential to the claim. This is why direct debit or online giving is strongly preferable to cash if you want to claim the rebate.

Can a company claim the charitable donation rebate?

Companies can claim a deduction for charitable donations (not a rebate, but a deduction from taxable income). This works differently from the personal 33.33% rebate. A company donating $1,000 can deduct that $1,000 from its taxable income, saving $280 in company tax (at 28%). This is less generous than the personal 33.33% rebate for donations up to taxable income level. Personal donations from individual shareholders are better channelled through the IR526 rebate rather than through the company.

Can I claim for donations made overseas?

Generally no. Donations to overseas charities do not qualify for the New Zealand donation tax credit unless the organisation has been specifically approved as a donee organisation by IRD. A small number of overseas organisations, particularly those doing humanitarian work in developing countries, are on the approved list. Most are not. Check the IRD donee list if you donate to international organisations.

Couple Income Split Tax Calculator NZ

Is income splitting between a couple legal in New Zealand?

Splitting income through shareholder salaries is legitimate when both partners genuinely work in the company and the salaries reflect the real nature and extent of the work each does. Paying an artificially low salary to divert income, or paying a salary to a partner who does little or no work, can be treated as tax avoidance, as in the Penny and Hooper cases. The excessive remuneration rule in section GB 25 of the Income Tax Act 2007 does not apply to a working shareholder, director or relative who works substantially full time in the business.

How much can we pay each partner?

Each salary should reflect what that person actually does in the business, in other words a commercially realistic amount for their role, hours and skills. Inland Revenue can challenge a salary that does not match the work performed. This tool shows the tax-minimising split, but the amount you can defensibly pay each person is limited by the genuine work each does.

What is the difference between a salary and a dividend?

A shareholder salary is a deductible expense for the company and is taxed at the individual's marginal rate, which is why it is the usual lever for income splitting. A dividend is paid out of after-tax company profit in proportion to shareholding, carries imputation credits for the 28 percent company tax already paid, and is then taxed at the shareholder's marginal rate with the credit applied.

Is this financial or tax advice?

No. This is general information and an indicative estimate to help you understand how splitting shareholder salaries affects combined tax. It does not account for ACC levies, KiwiSaver, student loans, Working for Families, attribution rules or your full circumstances. Confirm any structure with your accountant or Inland Revenue.

NZ Employer Cost of an Employee Calculator

What is the true cost of an employee in NZ?

The true cost is significantly higher than the gross salary. For an employee on $80,000 gross with default KiwiSaver, expect approximately: $80,000 gross + $2,800 KiwiSaver employer (3.5%) + $840 ESCT on the KiwiSaver + ACC employer levy (varies by industry, typically 0.5%-3% of payroll) + holiday pay accrual already in the salary. Total typically 8-15% above gross depending on industry classification and benefits offered.

How is ESCT calculated for KiwiSaver employer contributions?

ESCT (Employer Superannuation Contribution Tax) is paid by the employer on top of the KiwiSaver contribution they make. The rate depends on the employee's prior year earnings PLUS expected employer KiwiSaver contributions: 10.5% (under $18,720), 17.5% ($18,721-$64,200), 30% ($64,201-$93,720), 33% ($93,721-$216,000), 39% (over $216,000). For a $80k employee, ESCT is 30% on the $2,800 employer contribution = $840. ESCT is a tax-deductible expense for the business.

What is the ACC Work levy?

The ACC Work levy is paid by employers based on their industry Classification Unit (CU) and total payroll. Rates vary widely: low-risk office work might be $0.10 per $100 of payroll, while high-risk industries like construction or forestry can exceed $5 per $100. The Working Safer levy ($0.08 per $100) is also payable by all employers. ACC invoices these levies annually based on the prior year's payroll.

Is KiwiSaver mandatory for employers?

Yes for eligible employees. Employers must contribute the default 3.5% (from 1 April 2026, was 3% before) for any employee who is enrolled in KiwiSaver and not on a contributions holiday. Some employees may not be eligible (under 18, over 65 with no longer required to contribute, on certain visas). Employers can voluntarily contribute more. The employer contribution attracts ESCT which the employer pays on top.

NZ Interest Deductibility Calculator 2026

Is all rental interest 100% deductible in 2026?

Yes. From 1 April 2025 onwards, 100% of mortgage interest is deductible for all residential rental properties, regardless of when you acquired the property or drew down the loan. This applies to the 2026 income year (year ending 31 March 2026) and all future years. The National-led government fully reversed the Labour-era interest limitation rules in two stages: 80% deductibility from 1 April 2024, then 100% from 1 April 2025.

What about the 2024 and 2025 tax years?

For the 2024 income year (ending 31 March 2024), the limitation rules still applied: 50% for pre-27 March 2021 acquisitions, 0% for post-27 March 2021 acquisitions. For the 2025 income year (ending 31 March 2025), 80% deductibility applied uniformly regardless of acquisition date. New builds (CCC after 27 March 2020) had 100% throughout. If you need to amend a 2024 or 2025 return, check the specific year's rules - this calculator handles all years.

How is a new build defined?

A property is a new build if its Code Compliance Certificate (CCC) was issued on or after 27 March 2020. New builds had uninterrupted 100% interest deductibility throughout the 2021-2025 transition period. This status was important under the old rules. From 1 April 2025, the new build distinction is moot for interest deductibility since all rentals get 100%. But new builds still have favourable treatment under the old bright-line 10-year rule (5-year carve-out for sales before 1 July 2024).

What about previously denied interest on sale?

Interest that was denied during the 2021-2025 limitation period can still be deducted when the property is disposed of and the disposal is taxable (typically under the bright-line test). You need to keep detailed records of the denied interest for each year. When the sale is taxable, you subtract the cumulative denied interest from the gain. This is a significant detail many investors miss - if your property is in the bright-line period and was affected by the old rules, the denied interest effectively carries forward.

Average Salary for Your Age in NZ

What is the average salary for my age in New Zealand?

In the 2024 tax year the median annual earnings from wages and salaries were $54,780 for 25 to 29 year olds, $62,480 for 30 to 34 year olds, and $74,520 for 45 to 49 year olds, the peak band. Every band and every region has its own published figure, from tax records rather than surveys. They are medians of everyone with any wage income in the year, which is why they sit below advertised full-time salaries.

Why is the figure for my age lower than salaries I see advertised?

Three reasons stack. The figure is a median, not a mean, so it is not pulled up by high earners the way survey averages are. It counts everyone with any wage income, including part-time and part-year workers, at what they actually received. And it is total annual earnings from tax records, not a full-time equivalent rate. An advertised salary describes one full-time job; this figure describes what people your age were actually paid across the year.

I earn more than my age band's median. Am I doing well?

You are doing better than the figure can confirm, but less than it seems to say. Full-time workers are generally above their band's median because part-time and part-year earners pull it down, so beating the median mostly confirms you work full-time. The more useful comparisons are your own band in your own region, and your trajectory against the band above yours.

Where does this data come from?

Stats NZ's Linked Employer-Employee Data, built from tax records for every tax year since 2000, split by age band, sex, region and income source. Tax data covers essentially everyone who earned, which no survey does, and it is the same source behind every figure in this site's salary section.

Income Tax Guide NZ

What are the income tax rates in New Zealand for 2026/27?

New Zealand uses progressive brackets: 10.5% up to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, and 39% above $180,000. Only the income in each band is taxed at that band rate.

How do tax brackets work?

They are marginal. Moving into a higher bracket only taxes the portion of income above the threshold at the higher rate, not your whole income, so a pay rise never leaves you worse off overall.

Is income tax the only deduction from my pay?

No. PAYE income tax is deducted alongside the ACC earner levy, and, where they apply, KiwiSaver contributions and student loan repayments. Your take-home pay is what remains after all of these.

Do I need to file a tax return?

Most salary and wage earners do not. Inland Revenue issues an automatic income tax assessment after the tax year. You may need to act if you have untaxed income or want to claim certain credits.

Take-Home Pay NZ

What gets deducted from my pay in New Zealand?

PAYE income tax, the ACC earner levy, and, where they apply, KiwiSaver contributions and student loan repayments. Take-home pay is your gross pay minus all of these.

Does KiwiSaver reduce my take-home pay?

Yes. Your KiwiSaver contribution of 3%, 4%, 6%, 8% or 10% of gross pay comes out of your pay, but your employer also contributes on top and you may receive the annual government contribution.

How much is the ACC earner levy?

It is a flat percentage of your earnings up to an annual cap, deducted alongside PAYE. The rate is set each year and applies to salary and wages.

Why is my take-home pay less than my salary divided by 12?

Because tax, ACC, and any KiwiSaver and student loan deductions come out first. The calculator shows the net figure that actually lands in your account.

Restraint of Trade Checker NZ 2026

Are restraints of trade enforceable in New Zealand?

They can be, but they start from a position of being unenforceable as a restraint on trade, and the employer has to show the clause goes no further than is reasonably necessary to protect a genuine proprietary interest such as client connections or confidential information. Protecting yourself from ordinary competition is not a proprietary interest, and a clause that does only that will not hold.

How long can a restraint of trade last?

There is no fixed limit, and any figure quoted as a rule of thumb should be treated with suspicion. Duration is judged against how long the protected interest actually needs protecting, which for client relationships is often the time it would take a replacement to establish their own. Longer periods need stronger justification, and courts have struck out and also modified clauses depending on how they were drafted.

Does a court have to strike out an unreasonable restraint entirely?

No. Under the Contract and Commercial Law Act a court has power to modify or delete a restraint rather than simply refusing to enforce it, so an overreaching clause may be narrowed rather than lost. That is not a reason to draft one broadly and hope: a clause obviously drafted to overreach invites a less sympathetic reading of everything around it.

Does paying for a restraint make it enforceable?

Separate consideration for a restraint, particularly one added during employment rather than at the start, helps and its absence hurts, but it does not by itself make an unreasonable clause reasonable. Payment is one factor among scope, duration, geography, seniority and the genuineness of the interest being protected.

NZ Salary Sacrifice Calculator 2026

Does salary sacrifice affect my KiwiSaver employer contributions?

If you sacrifice salary to receive additional employer KiwiSaver contributions, the employer contribution goes directly into your fund. Your regular employee contribution continues to be calculated on your contracted salary (which may be the pre-sacrifice amount depending on how your agreement is structured). Check your employment agreement carefully.

Can I sacrifice salary for a company vehicle in New Zealand?

Yes, but vehicle benefits are complex from a FBT perspective. FBT on motor vehicles is typically calculated using either the tax value method or the cost price method. The tax saving depends on how much personal use the vehicle has and how FBT is calculated. Get specific advice from an accountant before entering into a vehicle salary sacrifice arrangement.

Does salary sacrifice reduce my student loan repayments?

Student loan repayments are generally calculated on your net taxable income. Because salary sacrifice reduces your taxable income, your automatic student loan deductions through PAYE will also reduce. This means a portion of the tax saving from sacrifice flows through as reduced student loan repayments rather than increased take-home pay. The net effect depends on the specific arrangement.

Is my employer required to offer salary sacrifice?

No. Salary sacrifice arrangements are entirely voluntary for employers. Your employer must agree to vary your employment agreement to include the sacrifice component. Some employers actively promote packaging as part of their remuneration strategy; others do not offer it. There is no legal entitlement to salary sacrifice in New Zealand employment law.

Aged Care Means Test Calculator NZ

What is the Residential Care Subsidy means test?

It assesses your assets and income to decide how much the government contributes towards rest home or hospital-level care and how much you pay yourself. If your assets are below a threshold, you may qualify for the subsidy.

What is the asset threshold for aged care?

There is an asset threshold set by the government, with different treatment depending on whether a partner remains in the family home. The figures change over time, so this calculator takes the threshold as an input.

How much do I pay towards care?

If you qualify for the subsidy, you generally contribute most of your income towards the care, and the subsidy covers the rest up to a maximum. If you are over the asset threshold, you pay the fees yourself until your assets reduce.

Annual Income Calculator NZ

How do I convert hourly pay to an annual salary?

Multiply your hourly rate by the hours you work per week, then by 52 weeks. For example, $30 an hour at 40 hours a week is 30 times 40 times 52, which is $62,400 a year before tax.

Is this before or after tax?

The annual income shown is your gross income, before PAYE tax, ACC, KiwiSaver, and any student loan. To see your take-home pay after deductions, use our PAYE Calculator.

How many weeks and fortnights are in a year?

A year has 52 weeks, 26 fortnights, and 12 months. The calculator uses these to convert between pay frequencies, so monthly pay is the annual figure divided by 12.

Annual Salary per Hour Calculator

How do I convert an annual salary to an hourly rate?

Divide the annual salary by the number of hours you work in a year, which is your hours per week multiplied by the weeks you work per year. For a $70,000 salary at 40 hours a week over 52 weeks, that is 70,000 divided by 2,080, which is about $33.65 an hour before tax.

Is this hourly rate before or after tax?

It is your gross hourly rate, before PAYE tax, the ACC levy, KiwiSaver and any student loan. Your take-home rate is lower once those come out. To see your net pay, use our PAYE calculator with the annual salary.

How many hours are in a full-time work year?

A common full-time assumption is 40 hours a week over 52 weeks, which is 2,080 hours a year. If you take unpaid leave, work part time, or count only the weeks you actually work, lower the hours or weeks so the hourly rate reflects your real hours.

Back Pay Tax Calculator NZ

How is back pay taxed in New Zealand?

Back pay is taxed as income and sits on top of your other earnings, so it is taxed at your marginal rate. A large lump sum can fall into a higher tax band for that period, though the year-end square-up settles the overall tax.

Why does back pay seem heavily taxed?

Because it is paid on top of your normal pay, the extra is taxed at your top marginal rate, and payroll may apply a higher rate to the lump sum, which can make the deduction look large.

Will I get some back at year end?

If too much was withheld on the lump sum, the year-end assessment can refund the difference, since your total tax is based on your full-year income.

Boarder Income Calculator NZ

Is income from boarders taxable in New Zealand?

Only the amount above Inland Revenue's weekly standard cost is taxable under the standard-cost method. If the board you receive is below the standard cost, none of it is taxable and you do not need to declare it. This calculator works out the taxable portion, if any.

What is the standard-cost method?

It is a safe-harbour approach where Inland Revenue sets a weekly standard cost per boarder representing typical hosting costs. You compare your board received against that allowance, and only the excess is taxable, which saves keeping detailed expense records.

Does the standard cost change?

Yes. Inland Revenue updates the weekly standard cost each year, and the method covers a limited number of boarders. This calculator lets you enter the current weekly standard cost. Check Inland Revenue's latest figure, and consider the actual-cost method if it suits you better.

Business Income Tax Calculator NZ 2026

Is the 28% company rate better than paying tax as a sole trader?

For profit that stays in the business, usually yes, because 28% is below the top personal rates of 33% and 39%. For profit you intend to draw personally it is closer to a deferral than a saving, since a dividend to a shareholder on a higher rate attracts the difference. Below about the middle personal bands a sole trader can pay less than a company on the same profit, because personal rates start at 10.5%.

Is business income tax charged on turnover or on profit?

On taxable profit, meaning revenue less deductible expenses, not on turnover and not on what you draw out of the business. An expense is deductible if it was incurred in earning the income, which is why private costs are excluded and mixed-use costs have to be apportioned. Turnover matters for GST registration, which is a separate tax with its own threshold.

When does a business have to start paying provisional tax?

Once residual income tax for the year passes the threshold, the following year is paid in instalments during the year rather than as a lump sum after it. The instalments are estimates under whichever method you use, and they are reconciled against the actual liability once the return is filed, with use of money interest applying either way on the difference.

Casual vs Permanent Calculator NZ

Does casual pay make up for no leave?

Casual work usually pays a higher hourly rate, partly because holiday pay is included as an 8% loading rather than taken as paid leave. Whether the higher rate makes up for missing sick leave, public holidays and job security depends on the gap and how much you would use those entitlements.

What do permanent staff get that casuals do not?

Permanent employees get paid annual leave, sick leave, bereavement leave, paid public holidays and more job security. Casuals are paid for hours worked, often with holiday pay rolled in, but without guaranteed hours.

How do I compare the two fairly?

Compare the annual earnings, but value the permanent role's paid leave (weeks you are paid without working) and the security of guaranteed hours. This calculator shows the earnings side so you can weigh it against the non-pay benefits.

Childcare vs Stay Home Calculator NZ

Does a second income cover childcare?

Sometimes only just, in the early years. Once tax, childcare for one or more children and working costs are taken out, the net gain from a second income can be small, though it usually grows as children start school and childcare falls away.

Should one parent stay home?

It is a personal decision with financial and non-financial sides. This calculator shows the money clearly, the net left after childcare and costs, so you can weigh that against career, wellbeing and family preferences.

What about the long-term career cost of staying home?

Time out of work can affect future earnings, KiwiSaver and progression, so even a small short-term gain from working may be worth more over a career. Consider the long view alongside the weekly numbers.

Crypto Gain Tax Calculator NZ

Is cryptocurrency taxed in New Zealand?

Yes. Inland Revenue generally treats crypto as property, and gains from selling or trading it are usually taxable. There is no separate capital gains tax, so the gain is taxed at your normal income tax rate.

How is the crypto gain calculated?

The gain is the sale value less the cost, both in New Zealand dollars at the time of each transaction. Keeping accurate New Zealand dollar records of every buy and sell is essential.

What rate is crypto taxed at?

At your marginal income tax rate, because the gain is added to your other income. So a larger gain on top of a higher income can be taxed at the top rate.

Donation Tax Credit Calculator NZ

How much is the donation tax credit?

It is 33.33 percent, one-third, of the donations you make in a tax year to approved donee organisations. So a $300 donation gives a $100 credit, making the real cost $200. The credit is a refund of tax already paid, not just a deduction.

Is there a limit on what I can claim?

Yes. Each donation must be $5 or more and have a receipt, and the total donations you claim cannot exceed your taxable income for the year. This calculator applies the income cap automatically when working out your credit.

How do I claim it?

You claim through Inland Revenue, and many people can now submit donation receipts during the year through myIR rather than waiting until after the tax year. Only donations to organisations on Inland Revenue's approved donee list qualify, so check the recipient first.

Effective Tax Rate Calculator NZ 2026-27

What is the difference between effective and marginal tax rate?

Your marginal tax rate is the rate that applies to your next dollar of income. Your effective tax rate is your total income tax divided by your total income. Because New Zealand uses a progressive tax system, most earners pay an effective rate well below their marginal rate. For example, someone earning $85,000 sits in the 33% bracket, but their effective rate is around 21.1% because the lower portions of their income are taxed at 10.5%, 17.5% and 30%.

Why does the NZ tax system use brackets?

Progressive taxation means lower earners pay a smaller percentage of their income in tax. Every New Zealand earner pays 10.5% on the first $15,600, then 17.5% on income from $15,601 to $53,500, 30% from $53,501 to $78,100, 33% from $78,101 to $180,000, and 39% on anything above $180,000. Only the portion of income that falls within each bracket is taxed at that rate.

Does the ACC levy affect my effective tax rate?

Yes. The ACC earner levy of 1.75% (2026/27) applies to income up to $156,641, adding roughly 1 to 1.75 percentage points to your total effective rate. At $85,000 income the ACC levy adds about $1,488, bringing the combined effective rate from 21.1% to around 22.8%.

FamilyBoost Rebate Calculator NZ

What is FamilyBoost?

FamilyBoost is a New Zealand rebate that refunds a share of early childhood education fees for eligible families. You claim it through Inland Revenue each quarter by submitting your childcare invoices, and the rebate is paid back to you.

How much is the FamilyBoost rebate?

The rebate is a percentage of your early childhood fees up to a quarterly cap, and it reduces once household income passes 140,000 dollars, phasing out completely by 180,000 dollars. The rate and cap have been increased since the scheme launched, so use current figures.

Who is eligible?

Families with children in licensed early childhood education who pay fees, are New Zealand tax residents, and are under the income cap. You need your ECE invoices to claim. Check the current rules and thresholds on the IRD website.

Farm Wage and Accommodation Calculator NZ

How much can be deducted for board or lodging?

Where there is no specific agreement about the cost of the accommodation, the Minimum Wage Act 1983 allows an employer to deduct 15 percent of wages for board or 5 percent for lodging, calculated at the relevant minimum wage rate. Board means accommodation and meals; lodging means accommodation only. These are the no-agreement defaults rather than a cap on what may be agreed, and where a cost is agreed it must be reasonable and recorded.

Does accommodation count towards the minimum wage?

The agreed cost of accommodation deducted before wages are paid is included as wages for Minimum Wage Act purposes, so the test is applied to the wage before the deduction rather than after it. Wage records should show the wages payable before any deduction for accommodation. That is why this calculator checks the minimum wage against the gross figure and shows the deduction separately.

Is a farm house part of the wage?

Only if there is an agreement saying so and setting a cost. A house provided with no agreement about its value is not automatically wages, and an employer cannot simply decide afterwards what it was worth and deduct that. Any accommodation arrangement should be recorded in writing with its cost, which protects both sides and is what the law expects.

Fiscal Drag Calculator NZ

What is fiscal drag or bracket creep?

Fiscal drag, also called bracket creep, happens when income tax thresholds stay fixed while wages rise. As your pay increases over time (often just to keep up with inflation), more of your income is pushed into higher tax brackets, so a larger share of your income is taxed at higher rates. Your effective tax rate climbs even though the tax rates themselves have not changed and you may be no better off in real terms. New Zealand's PAYE thresholds are not automatically indexed to inflation or wage growth, so fiscal drag quietly raises tax revenue every year the bands are left frozen.

Did Budget 2026 cut income tax in New Zealand?

No. Budget 2026 kept the PAYE income tax thresholds unchanged. The brackets have been frozen since 31 July 2024, when the last threshold changes took effect: 10.5% up to $15,600, 17.5% up to $53,500, 30% up to $78,100, 33% up to $180,000, and 39% above $180,000. Because the thresholds did not move while wages continued to rise, most workers pay a higher effective tax rate each year. Leaving brackets frozen is sometimes described as a stealth tax increase because it raises the tax you pay without any change to the headline rates.

How much does bracket creep cost me?

It depends on your salary, the size of your pay rises, and how many years the thresholds stay frozen. For example, on an $80,000 salary with 3.5% annual pay rises over 5 years, your salary grows to about $95,015. With frozen bands you would pay around $21,232 PAYE, against about $19,333 if the bands had been lifted by the same 3.5% each year. That is roughly $1,900 of extra tax in that final year alone, and close to $5,569 of extra tax across the full 5 year period. Higher earners and those crossing a threshold feel fiscal drag the most. Use this calculator to estimate your own figure.

Four-Day Week Calculator NZ

Will a four-day week cut my pay?

It depends on the arrangement. Some four-day weeks keep full pay for the same output, while others reduce pay to four-fifths. This calculator models either, showing the change to your take-home.

What do I save on a four-day week?

One fewer commuting day means saving on transport, parking, lunches and other work costs, which offsets some or all of any pay reduction. The calculator includes these savings.

Is a four-day week worth it financially?

Compare the after-tax pay change against the work-cost savings and the value of an extra day off. On reduced pay, the savings can offset much of the drop, making it more affordable than the headline cut suggests.

FTE Calculator NZ 2026

What is FTE and how is it calculated?

Full time equivalent expresses a team's hours as a number of full time people. It is total weekly hours divided by whatever your organisation defines as a full time week. Two people working 20 hours each are 40 hours in total, which against a 40 hour full time week is 1.0 FTE, even though the headcount is 2.

Is a full time week 40 hours in New Zealand?

There is no legal definition of full time hours in New Zealand. Forty hours is the most common convention and is what the minimum wage exemption tests tend to assume, but 37.5 hours is widespread in the public sector and professional services. The denominator changes the answer, so use the figure in your own employment agreements and state it whenever you report an FTE number.

Does FTE include casual and fixed term staff?

Include anyone whose hours you are counting for the purpose at hand. For a budget, include everyone you pay, including casuals, using their average weekly hours rather than their contracted hours, since a casual has no guaranteed hours. For a funding application, follow the funder's definition, which often excludes contractors because they are not employees.

Gender Pay Gap Calculator NZ 2026

What is the difference between the mean and median gender pay gap?

The mean compares average pay and the median compares the middle person in each group. They answer different questions and often disagree. A handful of very highly paid people at the top will widen the mean while leaving the median almost unchanged, so a large mean gap with a small median gap usually points to who holds the senior roles rather than to unequal pay for the same work.

Is a gender pay gap the same as unequal pay?

No, and the distinction matters. Paying people differently for the same or substantially similar work is unlawful under the Equal Pay Act. A pay gap is a different measure: it compares everyone in one group against everyone in another regardless of role, so it can be large in an organisation where every individual is paid correctly, simply because the higher paid roles are not evenly held.

Do New Zealand employers have to report a gender pay gap?

There is no general legal requirement for private sector employers in New Zealand to publish a gender pay gap, unlike the United Kingdom. Public service agencies report through their own framework, and a growing number of private employers publish voluntarily. Measuring it is worth doing regardless of whether you publish, because you cannot manage what you have not counted.

Gross-Up Pay Calculator NZ

How do I work out gross pay from take-home?

You reverse the PAYE and ACC deductions. Because tax is progressive, there is no single multiplier, so this calculator solves for the gross salary that leaves your target take-home after tax and the ACC levy.

Why would I gross up my pay?

When you know the after-tax amount you need to live on or want from a role, grossing up tells you the salary to ask for or negotiate to, so the number you agree delivers the take-home you want.

Does this include KiwiSaver and student loan?

This version solves for the salary after PAYE and the ACC earners levy. Add any KiwiSaver or student loan separately, as those further reduce take-home from the same gross.

IETC Calculator NZ

What is the IETC?

The Independent Earner Tax Credit is a tax credit of up to $520 a year for people earning between $24,000 and $70,000 who do not receive certain other support. It is worth about $10 a week and is designed to help middle income earners who miss out on other assistance.

Who is not eligible for the IETC?

You cannot claim the IETC if you receive Working for Families tax credits, an income tested benefit, NZ Super, a veteran's pension, or an overseas equivalent. It is aimed at independent earners who are not already receiving that support.

How is the IETC reduced?

You get the full $520 if your income is between $24,000 and $66,000. Above $66,000 it reduces by 13 cents for every dollar, reaching zero at $70,000. Below $24,000 you do not qualify.

Import Duty Calculator NZ

How is import duty and GST calculated in NZ?

Customs duty is charged on the value of the goods at the relevant duty rate, which depends on what the item is. GST of 15% is then charged on the goods value plus the freight, insurance, and any duty. New Zealand Customs also charges an Import Entry Transaction Fee and biosecurity levy on shipments that need a formal entry.

Do I pay GST on small online purchases?

For most low-value goods, overseas retailers now charge the 15% GST at checkout, so Customs does not collect it again at the border. Duty and the import fees usually only apply to larger or higher-value consignments. This calculator helps you estimate the duty and GST on a formal import.

What duty rate applies to my goods?

Duty rates vary by product, from 0% on many items to 5% or 10% on others such as clothing and footwear. Check the New Zealand Customs Working Tariff Document for the exact rate, then enter it here to estimate the cost.

Imputation Credit Gross-Up Calculator

What is an imputation credit?

It is a credit for company tax already paid on the profit behind a dividend. Attaching it stops the same profit being taxed twice, once in the company and again in your hands. You claim the credit against the tax on the grossed-up dividend.

How is the credit on a fully imputed dividend worked out?

Company tax is 28 percent, so a fully imputed dividend carries a credit of 28 divided by 72 of the cash amount. A $720 cash dividend therefore carries a $280 credit and grosses up to $1,000. The ratio shows how much of that full credit is attached.

Will I always have tax to pay on a dividend?

Not always. If your marginal rate is close to the 28 percent company rate the credit may cover most of the tax. Higher-rate taxpayers usually owe a top-up, while lower-rate taxpayers may have surplus credits.

In-Work Tax Credit Calculator NZ 2026

Who can get the In-Work Tax Credit?

Working families with dependent children who are not receiving a main benefit or student allowance. A sole parent must work at least 20 hours a week, and a couple must work at least 30 hours a week between them. The credit is part of Working for Families and is paid by Inland Revenue.

How much is the In-Work Tax Credit in 2026?

From 1 April 2026 it is up to $147 a week, or $7,670 a year, for a family with up to three children, plus $15 a week for each additional child. Both are Inland Revenue figures and they do not multiply out exactly: 52 weeks at $147 is $7,644, because the weekly payment is rounded down while the annual entitlement is set in legislation. This is a temporary increase; after 31 March 2027 the maximum returns to $97 a week ($5,070 a year), and it can return sooner if petrol stays below $3 a litre for four weeks. Annual entitlement reduces once family income passes the Working for Families abatement threshold of $44,900, at 27.5 cents per dollar over that threshold.

How does abatement affect the In-Work Tax Credit?

Abatement applies to the Family Tax Credit and In-Work Tax Credit together. The Family Tax Credit reduces first, so the In-Work Tax Credit is only reduced once income is high enough to fully phase out the Family Tax Credit. This calculator estimates the In-Work portion remaining after abatement.

IRD Penalties and Interest Calculator NZ

What happens if I pay tax late in New Zealand?

Inland Revenue charges a late payment penalty, commonly 1 percent the day after the due date and a further 4 percent if the tax is still unpaid after a week, plus use-of-money interest on the overdue amount until it is paid.

What is use-of-money interest?

Use-of-money interest, or UOMI, is interest IRD charges on tax paid late, set at a rate that changes from time to time and is usually higher than bank interest. It accrues daily on the unpaid balance, so the longer you take, the more it costs.

Can penalties be reduced?

IRD can remit penalties in some circumstances and offers instalment arrangements. Paying as soon as possible, or arranging to pay, limits the cost. This tool gives an estimate; contact IRD if you cannot pay on time.

Labour Cost Percentage Calculator NZ 2026

Should revenue include GST when working out labour cost percentage?

No. Use revenue excluding GST. GST is collected on behalf of Inland Revenue and never belongs to the business, so including it inflates the denominator and makes labour cost look lower than it is. On a GST inclusive figure at 15 percent, a labour cost of 30 percent would show as about 26 percent, which is a large enough error to hide a real problem.

What is a good labour cost percentage?

It depends entirely on the industry, so compare against your own history and your own budget rather than a number from the internet. Hospitality and retail typically watch this figure weekly because it moves with the roster, while a professional services firm where labour is nearly the whole cost base will run far higher and manage it differently. What matters is the trend and whether it is inside the target you set.

Does labour cost percentage include employer KiwiSaver and ACC?

It should, and many businesses measure wages alone and understate the figure by several percent. Employer KiwiSaver of at least 3.5 percent of gross pay and the ACC work levy are both real cash costs of employing people. This calculator shows both the loaded figure and the wages only figure so you can see the gap between them.

Leaving NZ Tax Refund Calculator 2026

Why do I get a tax refund when I leave New Zealand?

PAYE is deducted each pay as if you will earn at that rate for the whole year. If you leave part way through the tax year, your actual income for the year is lower, so it falls into lower tax brackets and you have usually paid more tax than you owe. The difference is refundable.

How do I claim a tax refund when leaving NZ?

You can request an early income tax assessment for the part-year, or file an IR3 once your final pay is in. Inland Revenue works out your refund or bill. If you are leaving permanently, tell IRD your departure date and a way to pay you. Keep your myIR login and bank details current.

Does the ACC levy get refunded too?

No. The ACC earner levy is a flat rate on income up to a cap, so it is not over-deducted by part-year working the way income tax is. This calculator estimates the income tax refund only. The Independent Earner Tax Credit may also apply if your income is in the eligible range.

Marginal Tax Rate Calculator NZ

What is the difference between marginal and average tax rate?

Your marginal rate is the rate on your next dollar of income, the rate of your top bracket. Your average rate is your total tax divided by your total income, always lower because the lower bands are taxed less. Both come from the same progressive brackets.

Will a pay rise push me into a higher tax bracket and leave me worse off?

No. Only the income above each threshold is taxed at the higher rate, so a pay rise always leaves you with more after tax. Crossing a bracket only means the portion above the threshold is taxed more, never your whole income.

Does this include the ACC levy?

No, this calculator shows income tax only, using the progressive brackets. The ACC earner levy is charged separately on salary and wages, and tax credits such as the independent earner tax credit are not included. For full take-home pay, use a PAYE calculator.

Maternity Pay Top-Up Calculator NZ

What is a parental leave top-up?

Government paid parental leave is capped at a maximum weekly amount, which is often less than your normal pay. Some employers voluntarily top this up, either to full pay or part way, for a period. A top-up is an employer benefit, not a legal requirement.

How much is government paid parental leave?

It pays your normal weekly pay up to a maximum weekly cap, for up to 26 weeks, funded by the government through IRD. If you earn above the cap, there is a gap between the payment and your usual income.

Is the top-up taxed?

Yes, both the government payment and any employer top-up are taxable income through PAYE.

Multiple Income Tax Calculator NZ

Why does my second job get taxed so much?

A second job uses a secondary tax code, which deducts at a flat rate based on your total income rather than starting again at the lowest bracket. It can feel high, but your real tax depends only on your total income across all jobs, which this calculator works out.

Will I get a tax refund or a bill?

At year end Inland Revenue compares the tax deducted across all your income with the tax actually owed on your total. If too much was deducted you get a refund, and if too little you get a bill. This tool estimates your correct total tax so you can check.

Does it matter how my income is split between jobs?

No. Your total income tax depends only on your total income, not how it is divided between jobs. Splitting income across two jobs does not change the total tax owed, only how it is deducted during the year.

Net to Gross Salary Calculator NZ

How do I work out gross salary from net pay?

You reverse the tax calculation: find the gross salary that, after PAYE and the ACC earners levy, leaves your desired take-home. Because tax is progressive, this calculator searches for the gross figure that produces your target net.

Why is gross so much higher than net?

Gross pay has PAYE income tax and the ACC earners levy taken out before you receive it, and KiwiSaver if you contribute. The higher your income, the larger the share taken in tax, so the gap between gross and net widens.

Does this include KiwiSaver?

This calculator works back to the gross before KiwiSaver, covering PAYE and the ACC levy. If you contribute to KiwiSaver, your actual take-home would be a little lower, so you would need a slightly higher gross.

NFT Gain Tax Calculator NZ

Are NFT sales taxed in New Zealand?

Usually yes. Inland Revenue treats NFTs like other crypto-assets, as property acquired with the purpose of disposal, so gains are generally taxable income at your marginal rate. There is no separate capital gains tax, but the profit is still taxed.

What costs can I deduct?

You can deduct the cost of acquiring the NFT and the transaction costs of buying and selling, such as gas fees and marketplace commissions. The taxable gain is the sale price less those costs.

What about losses?

If you sell for less than you paid, you may have a deductible loss where the activity is taxable. Keep records of every purchase, sale and fee, and get advice for your situation.

On-Call Allowance Calculator NZ

How is on-call pay calculated?

On-call pay usually combines a standby allowance for being available (a daily or hourly rate) with paid hours, often at a higher rate, for any call-outs you actually work. Your agreement sets the rates.

Do I get paid just for being on call?

Often yes, through a standby allowance, because being on call restricts your freedom even if you are not called. Then if you are called out, you are paid for the time worked, sometimes with a minimum call-out payment.

Is on-call time taxed?

Yes, on-call allowances and call-out pay are taxable income and go through PAYE like the rest of your wages.

Part-Year Tax Refund Calculator NZ 2026

Why are students and part-year workers over-taxed?

PAYE is deducted each pay as if you earn at that rate all year. If you only work part of the year, such as a summer job, your real annual income is lower and falls into lower tax brackets, so you usually pay more tax than you owe and are due a refund.

Do I need to do anything to get the refund?

Usually no. After 31 March, Inland Revenue issues an automatic income tax assessment, generally between late May and July, and pays any refund to your bank account. Make sure your bank details and contact information are correct in myIR so the refund can reach you.

What income counts for the tax year?

The New Zealand tax year runs from 1 April to 31 March. Add up the gross pay from all jobs in that period and the total PAYE deducted, which you can find on payslips or in myIR. Enter both here to estimate whether you are owed a refund.

Pay Cycle Budget Calculator NZ

How do I budget around my pay cycle?

Convert your regular bills to the same frequency as your pay, then subtract them from each pay packet before you spend. What is left is what you can save and spend. Aligning bills to paydays stops money running short between pays.

Why does pay frequency matter for budgeting?

Bills and pay often run on different cycles, so a monthly bill on a fortnightly pay can blindside you. Putting everything on a per-pay basis shows exactly what each pay must cover.

What is a good split for what is left?

A common guide is to direct a portion to savings first, then everyday spending. Even setting aside a small amount each pay builds a buffer and savings over time.

Pay Parity Calculator NZ

What does the Equal Pay Act 2020 require NZ employers to do?

The Equal Pay Act 2020 requires employers to pay equal pay for work that is the same, substantially similar, or of equal value. Unjustifiable pay differences based on gender or other protected grounds are unlawful. Employers must respond to pay equity claims within statutory timeframes and engage in good faith bargaining where a claim has merit.

Can pay differences ever be justified under NZ law?

Yes. Genuine differences in skills, experience, performance, seniority, or market rates for specialist roles can justify pay differences, provided those factors are genuinely applied and not a proxy for gender or other protected characteristics such as age, ethnicity or family status.

How is pay defined for equal pay purposes?

Pay includes base salary, overtime rates, allowances, bonuses, and other monetary remuneration. Non-monetary benefits like flexible working arrangements, vehicle use and other perks may also be relevant when assessing whether two roles are genuinely paid on equal terms.

Pay Rise Lifetime Value Calculator NZ

Why is a pay rise worth more than the annual amount?

Because future percentage raises build on the higher base, a rise today lifts every pay packet for the rest of your career. The compounding effect means a modest rise can be worth far more than its first-year value.

Should I negotiate hard for a pay rise?

Seeing the lifetime value often makes the case clear. A few thousand dollars now, lifted by future raises over many years, can add up to a very large sum, which is why the starting point matters so much.

Does this account for tax?

This calculator shows the gross lifetime value to illustrate the compounding effect. Tax would reduce the take-home, but the point stands that a higher base compounds across a career.

Pension Calculator NZ

How much is NZ Super?

NZ Super is paid fortnightly and the after tax amount depends on your living situation and tax code. The rates change every year on 1 April. Because the figures move, this calculator lets you enter the current fortnightly rate from the Work and Income website, then converts it to weekly and annual income.

Will NZ Super be enough to retire on?

For many people NZ Super covers the basics but not the lifestyle they want. This calculator shows the gap between NZ Super and your target income, then estimates the lump sum needed to fund that gap using a simple 4% drawdown guide. KiwiSaver and other savings are designed to fill that gap.

How is the savings target worked out?

It uses the 4% rule as a rough guide, which suggests you can draw about 4% of a balance each year. So the lump sum needed is the annual income gap divided by 0.04, or 25 times the gap. It is an estimate, not advice, and real plans should allow for inflation, returns, and how long the money must last.

PIE PIR Calculator

How is the PIR worked out?

For each of the last two income years you take the higher of your taxable income alone and your taxable income plus PIE income. Your PIR is then based on the lower of those two yearly figures, using the 10.5, 17.5, or 28 percent thresholds.

What are the PIR thresholds?

The PIR is 10.5 percent if taxable income is $15,600 or less and combined income (taxable plus PIE) is $53,500 or less; 17.5 percent if taxable income is $53,500 or less and combined income is $78,100 or less; and 28 percent above that. The calculator applies the lower of the two years' rates.

What if my PIR is wrong?

If your PIR is too low you may have extra tax to pay at year end, and if it is too high you could be paying more than necessary. It pays to review your PIR each year and update it with your provider if your income changes.

PIR / PIE Tax Rate Optimiser NZ

Why is a PIE fund more tax-efficient?

A PIE is taxed at your prescribed investor rate, which is capped at 28 percent. If your marginal tax rate is 30, 33 or 39 percent, income inside a PIE is taxed at a lower rate than the same income earned directly, so you keep more after tax.

Who benefits most from a PIE?

Higher earners on a 33 or 39 percent marginal rate benefit most, because the 28 percent PIE cap saves the most tax. For someone on 17.5 percent or below, a PIE offers little tax advantage over a normal investment.

What is a non-PIE investment?

It is an investment whose income is taxed at your full marginal rate, such as interest from an ordinary bank term deposit or direct share dividends. The same return is taxed more heavily than inside a PIE if your marginal rate is above 28 percent.

Pro-Rata Salary Calculator NZ 2026

How is a pro-rata salary calculated?

A pro-rata salary is the full-time salary multiplied by your share of full-time hours. If full-time is 40 hours a week and you work 24, you are paid 24/40, or 60 percent, of the full-time salary. The hourly rate stays the same; you are simply paid for fewer hours.

Does pro-rata change my hourly rate?

No. Pro-rata keeps the same hourly rate as the full-time role and scales the total pay to the hours you actually work. This calculator shows the hourly rate so you can confirm a part-time offer pays the same per hour as the full-time equivalent.

Is pro-rata pay taxed differently?

No. Pro-rata pay is taxed under the normal PAYE rules on your actual earnings. Because you earn less than the full-time salary, your total tax is lower and your average tax rate is usually lower too. Use the PAYE calculator to see take-home pay on your pro-rata salary.

Proposed 45% Top Tax Rate Calculator NZ

Is there a 45 percent tax rate in New Zealand?

No. The top personal rate is 39 percent on income above $180,000, set on the 2026/27 scale. A 45 percent rate is hypothetical and has not been legislated. This calculator lets you model one.

Would a higher top rate apply to all my income?

No. New Zealand uses a progressive scale, so a new top rate applies only to the income above its threshold. Income below the threshold is taxed exactly as it is now, which is why someone just above the threshold pays only a few extra dollars.

What is my effective rate?

The effective rate is your total tax divided by your total income, which is always lower than your top rate because the earlier bands are taxed less. This calculator shows the effective rate so you can see the difference between the two.

Proposed Asset Tax Calculator NZ

Does New Zealand tax wealth or assets?

No. New Zealand taxes income from assets, such as rent, dividends and interest, but has no annual tax on the value of assets themselves and no net wealth tax. This calculator models a hypothetical tax that does not exist.

Would KiwiSaver and the family home be included?

That depends entirely on a design that does not exist. Some wealth tax proposals include all assets, others exclude retirement savings or the main home. This calculator includes whatever you enter, so you can test both by changing the assets figure.

Why does the threshold matter so much?

Because the tax applies only above it. A high threshold means most households pay nothing at all, and those above it pay only on the excess rather than on their whole net worth. Moving the threshold usually changes the result far more than moving the rate.

Proposed Capital Gains Tax Calculator NZ

Does New Zealand have a capital gains tax?

No. New Zealand has no general capital gains tax. Some gains are already taxable: residential property sold inside the bright-line period, and any asset bought with the intention of resale. This calculator models a hypothetical broad CGT that does not exist and has not been legislated.

Would the family home be taxed?

Almost every capital gains tax in the world exempts the main home, and every serious New Zealand proposal has done the same. This calculator applies no exemption, so if you are modelling a family home the realistic answer under most designs would be no tax at all.

Would gains before the tax started be taxed?

Usually not. Most countries that introduce a capital gains tax value assets at the start date and tax only the gain after it, which is called valuation day. That means a real scheme would tax far less than the full historical gain this calculator shows.

Proposed Gift Tax Calculator NZ

Does New Zealand have a gift tax?

No. Gift duty was abolished on 1 October 2011, so there is no tax on making a gift in New Zealand. This calculator models a hypothetical gift tax that does not exist and has not been proposed into law.

Are there any consequences to gifting in New Zealand?

Yes, but not tax ones. Large gifts can affect eligibility for a residential care subsidy, which looks back at gifting over a number of years, and gifts made to defeat creditors can be reversed. Gifting is free of duty, not free of consequence.

Who would pay a gift duty?

Under the New Zealand regime that ran until 2011, gift duty was payable by the person making the gift, not the recipient. This calculator shows the duty deducted from the gift so you can see both figures, but who pays is a design choice.

Proposed Inheritance Tax Calculator NZ

Does New Zealand have an inheritance tax?

No. Estate duty was abolished for deaths from December 1992 and gift duty was abolished in 2011, so New Zealand has no tax on inheritance or on gifts. This calculator models a hypothetical tax that does not exist.

Is an inheritance taxable income to the person receiving it?

No. Receiving an inheritance is not income and is not taxed in New Zealand. Income the estate earns before it is distributed is taxable to the estate, and assets can still be caught by rules like the bright-line test, but the inheritance itself is not taxed.

Would a threshold apply per estate or per beneficiary?

That is a design choice, and no design exists. A threshold per beneficiary produces a much smaller tax on an estate split many ways than a single threshold on the whole estate. This calculator applies the threshold to the estate as a whole.

Proposed Land Tax Calculator NZ

Does New Zealand have a land tax?

No. New Zealand has no land tax. Property owners pay council rates, which are a local government charge for local services and are not a national tax on land value. This calculator models a hypothetical land tax that does not exist.

Where do I find my unimproved land value?

Your council rates notice usually splits your property into land value and improvements, or capital value and land value. The land value is the figure to enter here. It is the value of the section alone, ignoring the house on it.

How is a land tax different from council rates?

Rates fund local services and are set by each council using its own formula, often including fixed charges. A land tax would be a national tax on land value alone. The two can exist together, which is what happens in several countries.

Real Hourly Wage Calculator NZ

What is a real hourly wage?

It is your take-home pay divided by all the hours a job actually consumes, including commuting and preparation, after subtracting work-related costs. It is usually lower than your headline hourly rate.

Why does my real hourly wage matter?

It shows the true value of your time, which helps you judge a long commute, a higher-paying but more demanding role, or whether a purchase is worth the hours of real work it costs.

What costs should I include?

Include costs you only have because of the job, such as transport, parking, and other work-related spending. Leave out costs you would have anyway.

Return to Work Worth It Calculator NZ

How do I know if returning to work is worth it?

Take your net pay after tax, then subtract the real costs of working such as childcare, commuting and extra spending. What is left is the true financial gain, which helps you weigh it against the non-financial sides of the decision.

Why can returning to work leave so little?

Childcare for young children is a large cost, and when it lands on top of tax, transport and other working costs, the net gain from a second income can be small in the early years before children start school.

Does this consider Working for Families?

This is a simple net comparison. Working for Families, the childcare subsidy and other support can change the picture, so check your entitlements; they often improve the case for returning to work.

RWT Calculator NZ

What is RWT?

Resident withholding tax, or RWT, is tax deducted from interest paid to you on savings and deposits. Your bank withholds it at the rate you have nominated and pays it to Inland Revenue, so you receive the interest net of tax.

What RWT rate should I choose?

Your RWT rate should match your income tax rate. If it is too low you may face a bill at year end, and if too high you have effectively overpaid and wait for a refund. The rates line up with the income tax brackets.

How do I avoid a bill on my interest?

Set your RWT rate to your correct marginal tax rate with your bank. If you do not give a rate and an IRD number, a high default rate can apply, so it is worth setting it correctly.

RWT on Interest Calculator

What is RWT on interest?

Resident withholding tax is tax your bank or payer deducts from interest before paying it to you. It works like a prepayment of your income tax on that interest, at the rate you have nominated.

Which RWT rate should I choose?

Choose the rate that matches your total taxable income for the year, from 10.5 up to 39 percent. If you pick a rate below your true marginal rate you may have more tax to pay when you file your return.

What happens without an IRD number?

If you do not give your payer your IRD number, RWT is usually deducted at the higher no-notification rate. Providing your IRD number lets the correct rate apply and avoids overpaying.

Salary Calculator NZ

How do I convert an hourly wage to a salary?

Multiply the hourly rate by the hours you work each week, then by 52 weeks for the annual figure. So $30 an hour at 40 hours a week is $1,200 a week and $62,400 a year. This calculator does every pay period at once.

Is this gross or take-home pay?

These are gross figures, before tax. To see take-home pay after PAYE, ACC, KiwiSaver, and student loan, use our PAYE Calculator, which applies the New Zealand tax rules to your gross income.

How many work days are in a year?

This calculator uses 52 weeks a year and your stated hours per week. The daily figure assumes 5 work days a week. Actual pay can differ slightly with public holidays and leave, but this gives an accurate everyday comparison.

Secondary Tax Code Calculator NZ

How do I choose a secondary tax code?

Add up your expected income from all sources for the year and choose the code for that total: SB up to $15,600, S up to $53,500, SH up to $78,100, ST up to $180,000, and SA above. The secondary code applies the correct marginal rate to your additional income.

Does a second job get taxed more?

No, despite the common belief. The secondary tax code simply applies the correct marginal rate, since your second job's income stacks on top of your main income. Choosing the right code means the total tax across both jobs comes out about right, with no extra penalty.

What if I pick the wrong code?

Too high a code means too much tax is deducted and you wait for a refund; too low means too little is taken and you may owe at year end. Inland Revenue can also tailor a code to your situation. Choosing by total income, as this calculator does, gets it close.

Shareholder Salary Calculator NZ

What is a shareholder salary?

It is a way of allocating company profit to an owner who works in the business, taxed at their personal rates rather than the company rate. It often has no PAYE deducted during the year, with the tax paid through provisional and terminal tax instead.

Is it better to take a salary or retain profit?

It depends on the amount. Modest salaries are often taxed at a lower average rate than the 28 percent company rate, while large salaries hit the 33 and 39 percent personal bands. This calculator compares the two so you can find the efficient level for your situation.

Does this include ACC levies?

No, it estimates income tax only using the personal brackets. Shareholder salaries can also attract the ACC earner levy, and retained profits interact with imputation credits when later paid as dividends. Confirm the full picture with an accountant.

Short-Stay Income Calculator NZ

How much can I make from Airbnb in New Zealand?

Your gross income is your nightly rate times the nights booked, but the real figure is much lower after platform fees, cleaning, consumables and tax. This calculator estimates the net you actually keep.

Do I pay tax on short-stay accommodation income?

Yes, short-stay income is generally taxable, and GST can also apply once you pass the registration threshold. Set aside tax from each booking so you are not caught out at year end.

What costs reduce short-stay income?

Platform fees, cleaning, linen and consumables, power and internet, and wear and tear all reduce your income, along with tax. The net can be far less than the gross bookings suggest.

Side Hustle Tax Calculator NZ

How much tax do I pay on side hustle income?

Side income is added on top of your main income and taxed at your marginal rate, so the tax depends on your total income. This calculator works out the extra tax by comparing the tax on your total income with the tax on your main income alone.

How much should I set aside for tax on a side hustle?

Setting aside your marginal tax rate on each payment is a safe approach, often around 30% to 33% for many people. This calculator shows the exact percentage to reserve based on your income so there is no surprise bill at year end.

When does provisional tax apply to a side hustle?

If the tax you owe on income that was not taxed at source, your residual income tax, exceeds a threshold set by Inland Revenue, you generally move into provisional tax the following year. The calculator flags when your side income tax is large enough to consider this.

Span of Control Calculator NZ 2026

How many staff do I need to cover my opening hours?

Multiply your opening hours by the number of people who must be on at once to get the staff hours you need each week, add an allowance for leave and absence, then divide by the contracted hours of one person. The allowance is the part people forget: a team sized exactly to the roster has nobody spare the first time someone takes annual leave or calls in sick.

What allowance should I use for leave and absence?

Start from the entitlements themselves. Four weeks of annual holidays, 12 public holidays and 10 days of sick leave together take roughly 15 percent of a full time year off the roster before anything unusual happens. If your team also takes bereavement or family violence leave, or you run a business where absence is higher, the figure should be higher.

What is a reasonable span of control?

It depends entirely on how much supervision the work needs. A team doing repetitive, well defined work with experienced staff can sit comfortably at one supervisor to ten or more. Complex work, high turnover, safety critical tasks or a lot of new starters all pull the number down sharply. Use your own experience rather than a benchmark, and treat a number that keeps producing overtime as evidence it is too high.

StudyLink Student Allowance Eligibility Calculator NZ 2026

Who is eligible for a Student Allowance in NZ?

Generally a full-time student on an approved course who is a New Zealand citizen or meets the permanent residency criteria and is 18 or over. Under-24s without a partner or children are subject to a parental income test, while older students are tested on their own income.

How does the parental income test work?

For most under-24 students, the allowance reduces as parents' combined income rises above a threshold and cuts out at a higher one. The exact thresholds change each year, so this tool gives an indication only and StudyLink calculates the actual amount.

Is the Student Allowance the same as the living-cost loan?

No. The allowance is a weekly payment you do not repay, subject to income tests. The student loan living-cost component is borrowed money you must repay. Many students use one or the other; the allowance is preferable where you qualify.

Tax Bracket Calculator NZ 2026/27

What are the NZ income tax brackets?

For the 2026/27 year the rates are 10.5% up to $15,600, 17.5% from $15,601 to $53,500, 30% from $53,501 to $78,100, 33% from $78,101 to $180,000, and 39% above $180,000. Tax is progressive, so each rate applies only to the income within that band.

What is the difference between marginal and effective tax rate?

Your marginal rate is the rate on your next dollar earned, which is the top bracket you reach. Your effective rate is total tax divided by total income, which is always lower because the lower bands are taxed at lower rates.

Does this include ACC and the IETC?

No. This shows income tax only. Your payslip also has the ACC Earners' Levy deducted, and some earners qualify for the Independent Earner Tax Credit. For full take-home pay including these, use our PAYE Calculator.

Tax Calculator NZ

How is income tax calculated in New Zealand?

PAYE is worked out in tiers. For 2025/26 the first 15,600 dollars is taxed at 10.5 percent, then 17.5 percent to 53,500, 30 percent to 78,100, 33 percent to 180,000 and 39 percent above that. Only the income in each band is taxed at that band's rate.

What is the ACC earners levy?

The ACC earners levy is deducted alongside PAYE to fund cover for non-work injuries. It is charged on income up to a maximum, and is shown here separately from income tax.

Does this include KiwiSaver and student loan?

Yes. You can add a KiwiSaver contribution rate and a student loan, and the calculator subtracts both to show your real take-home pay.

Time and a Half Calculator NZ

Is overtime pay required by law in New Zealand?

No. There is no general legal right to overtime pay in New Zealand. Whether you are paid extra for additional hours, and at what rate, is set by your employment agreement. The only floor is that your total pay must not fall below the minimum wage for the hours you actually worked.

What is time and a half on a public holiday?

Under the Holidays Act 2003 you must be paid at least time and a half for the hours you work on a public holiday. This is a legal minimum that your employment agreement cannot reduce, and it applies whether or not the day was one you would otherwise have worked.

What is an alternative holiday?

If you work on a public holiday that falls on a day you would otherwise have worked, you are entitled to a whole paid day off to take later, on top of being paid time and a half. It is a full day regardless of how many hours you worked on the public holiday.

Timesheet Calculator NZ 2026

Are rest and meal breaks paid in New Zealand?

Rest breaks are paid and meal breaks are unpaid unless your employment agreement says otherwise. So a 10 minute morning tea break stays in your paid hours, while a 30 minute lunch break usually comes out of them. Enter only the unpaid break minutes in this calculator, because the paid ones are already inside the start and finish times.

Is overtime compulsory to pay in New Zealand?

There is no legal requirement in New Zealand to pay a higher rate for overtime. Whether overtime exists at all, the hours it starts after and the rate it is paid at all come from your employment agreement or collective agreement. What the law does require is that total pay never falls below the minimum wage for every hour worked.

How do I handle a shift that runs past midnight?

Enter the finish time as it appears on the clock, for example a shift from 22:00 to 06:00. This calculator treats a finish time earlier than the start time as running into the next day and adds the hours to the day the shift started on, which is how most payroll systems record it.

Trust vs Company vs Personal Tax Calculator NZ 2026

Can I distribute trust income to minor children in New Zealand?

Distributions to minor children (under 16) are subject to the income attribution rules if the income originates from the settlor's personal exertion (business income, salary etc.). In practice, most distributions to minor children from trusts are taxed at the settlor's marginal rate, eliminating the income-splitting benefit. Distributions from investment income held in trusts have different rules. Get specific advice from a tax accountant before planning distributions to minors.

Do I need to actually pay dividends out of my company?

No. You can retain profits inside the company at the 28% company tax rate indefinitely. You only pay personal tax when you extract the money as salary or dividends. This deferral is one of the key advantages of a company structure: income that stays in the company continues to compound at the 28% after-tax rate rather than at the lower after-personal-tax rate. The personal tax is effectively deferred until you need the cash.

Is a trust or company better for holding rental properties?

This depends on the rental income level and who the beneficiaries are. For families with a high earner and low-income beneficiaries, a trust often provides the best income distribution flexibility. For people wanting asset protection and the ability to retain rental income at a lower rate, a company (limited liability) has advantages. Many property investors hold properties in companies or LPTs (look-through companies) for different reasons. This is a complex area and worth a specific conversation with a property-focused accountant or lawyer.

Trust Tax Calculator NZ

What is the trustee tax rate in New Zealand?

From the 2024/25 income year, trustee income is taxed at 39 percent, matching the top personal rate. A de minimis rule taxes trusts with trustee income of $10,000 or less at 33 percent instead, to ease compliance for small trusts.

What is the difference between trustee and beneficiary income?

Trustee income is income the trust retains and is taxed at the trustee rate. Beneficiary income is distributed to beneficiaries in the year and taxed at each beneficiary's own marginal rate. Distributing to beneficiaries on lower rates can reduce overall tax, subject to the rules.

Is trust tax really this simple?

No. This calculator estimates tax on retained trustee income at the headline rate. Real trust taxation involves beneficiary allocations, the minor beneficiary rule, settlor rules and anti-avoidance provisions. Always confirm a trust's tax position with an accountant.

Understanding Your PIR Calculator NZ

What is a PIR?

The prescribed investor rate is the tax rate applied to income from a Portfolio Investment Entity, which includes most KiwiSaver and managed funds. There are three rates: 10.5, 17.5 and 28 percent, set by your income over the last two years.

How do I find my PIR?

Take the lower of your last two years' taxable income. If it is 15,600 dollars or less and your income plus PIE income is 53,500 or less, your PIR is 10.5 percent. Up to 53,500 income and 78,100 combined is 17.5 percent. Above that it is 28 percent.

Why does it matter?

Providers default investors who do not supply a PIR to 28 percent, so a lower earner can overpay tax for years. Giving your provider the correct PIR is one of the simplest ways to stop paying too much tax on your investments.

Use of Money Interest Calculator NZ

What is use of money interest?

Use of money interest, or UOMI, is interest Inland Revenue charges when tax is paid late or underpaid, and pays when you have overpaid. The taxpayer rate is set by Inland Revenue and changes over time, and it generally compounds daily.

How is late tax interest calculated?

Interest is charged on the unpaid tax for each day it is overdue, compounding daily at the current taxpayer rate. Late payment penalties can also apply on top. This calculator estimates both from the amount, the days overdue, and the rate you enter.

How do I avoid use of money interest?

Pay tax on time, or if you cannot, contact Inland Revenue early to arrange an instalment plan, which can reduce or stop further penalties. Setting money aside through the year, especially for provisional tax, is the best prevention.

Working From Home Tax Deduction Calculator NZ

Can I claim a tax deduction for working from home?

If you are self-employed or run a business from home, you can claim a share of household costs that relate to the space you use for work, such as power, rates, insurance, and mortgage interest or rent, based on the area used.

How is the home office deduction worked out?

You divide the floor area of your work space by the total floor area of your home to get a percentage, then apply that percentage to your apportionable household costs. Phone and internet used for work can be claimed separately on a reasonable basis.

Does IRD have a simpler method?

Yes, IRD publishes a square-metre rate option that combines a set rate per square metre with the premises cost portion, which can be simpler than tracking every bill. This tool uses the area-apportionment method. Keep records either way.

Workplace Incident Cost Calculator NZ 2026

Who pays for the first week after a work injury in New Zealand?

The employer does. For a work related injury the employer pays first week compensation at 80 percent of the employee's earnings for the first week off work, and ACC picks up weekly compensation from the second week onwards at the same 80 percent rate. That first week is a direct cost to the business and is separate from any levy effect.

Does a claim increase my ACC levy?

It can. ACC runs experience rating and safety programmes that adjust a business's work levy up or down based on its claims history relative to others in its classification unit. The effect depends on the size of the business and the programme it sits in, so enter your own estimate rather than assuming a fixed number.

What costs do businesses usually miss after an incident?

The time. Investigating properly, notifying WorkSafe where the incident is notifiable, retraining, and covering the absent person all consume hours from people who are not doing their normal jobs, and those hours rarely appear in any report. Lost productivity while a replacement gets up to speed is usually larger than the compensation itself.

Wrong Tax Code Refund Calculator NZ 2026

How do I know if I am on the wrong tax code?

A common sign is being on a secondary code such as S, SH or ST on your only or main job, which taxes every dollar at a flat high rate instead of stepping through the brackets. If the tax deducted across the year is more than the tax you actually owe on your total income, you have over-paid.

How much tax can I get back from the wrong code?

It depends on the gap between the flat secondary rate you were charged and your true average rate. Someone on a single income wrongly taxed at the 17.5 percent secondary rate can be owed well over a thousand dollars. Enter your income and the tax deducted to estimate the difference.

Will Inland Revenue fix it automatically?

The year-end automatic assessment squares up most over-payments and refunds them. You can also fix the code going forward by giving your employer an updated IR330 with the correct code, so the right amount is deducted from your next pay.

Yearly Wage Calculator NZ

How do I convert an hourly rate to a yearly salary?

Multiply the hourly rate by the hours worked per week, then by the number of weeks you are paid for. At $25 an hour for 40 hours over 52 weeks that is $52,000 gross. Use fewer than 52 weeks if the role has no paid leave.

Why is monthly pay not four times weekly?

Because a month averages about 4.33 weeks, not four. Multiplying weekly pay by four understates monthly income by roughly eight percent, which on a $52,000 salary is about $333 a month. Monthly pay is the annual figure divided by twelve.

Are these figures before or after tax?

Before. They are gross, ahead of PAYE, the ACC earners levy, KiwiSaver contributions and any student loan deduction. Use a PAYE calculator to see what actually reaches your account.

Australian PAYG Calculator

Does this calculator use current Australian ATO rates?

Yes. It applies the current Australian resident income tax rates (16%, 30%, 37% and 45%), the 2% Medicare levy and the Low Income Tax Offset. It is an Australian tool and does not use New Zealand tax rules. Results are indicative estimates and not financial or tax advice.

How Much Tax Do I Pay on a Second Job in NZ?

How much tax do I pay on a second job in New Zealand?

Income from a second job uses a secondary tax code based on your total income across all jobs: SB at 10.5% (under $15,600), S at 17.5% (to $53,500), SH at 30% (to $78,100), ST at 33% (to $180,000) or SA at 39% (above $180,000). It is not extra tax, it just applies your correct marginal rate to the second income from the first dollar, because your tax-free-style lower brackets are already used by your main job.

What Is My Marginal Tax Rate in NZ?

What is my marginal tax rate in New Zealand?

Your marginal tax rate is the rate of income tax on your next dollar of earnings. For 2026/27 New Zealand has five rates: 10.5% on income to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, and 39% above $180,000. On a $70,000 salary your marginal rate is 30%, while your effective rate (total tax divided by income) is lower at about 20%.

What Is My Take-Home Pay in NZ?

What is my take-home pay in New Zealand?

Your take-home pay is your gross pay minus PAYE income tax, the ACC earners levy (1.75%), and any KiwiSaver and student loan, plus the Independent Earner Tax Credit if you qualify. For example, on a $70,000 salary the income tax is about $13,221 and the ACC levy about $1,225, leaving roughly $55,600 a year, or about $1,068 a week, before any KiwiSaver or student loan.