New Zealand finance glossary

This glossary brings together plain-English definitions of the financial and tax terms you will come across on Calculate.co.nz and in everyday New Zealand money matters, from PAYE, GST and KiwiSaver through to the bright-line test, FIF, LVR, DTI, OCR, RWT, ESCT, FBT, PIE, PIR, NZ Super and Working for Families. Each entry explains what the term means in a sentence or two, without jargon, and where a related calculator exists, such as the PAYE, GST, KiwiSaver or FIF tools, it links straight through so you can turn the definition into your own numbers. There is nothing to enter here; simply scan the list or use your browser's find function to jump to the term you need, whether you are reading a payslip, comparing mortgage offers, working out student loan repayments or making sense of a tax return. The entries cover the core building blocks of New Zealand's tax and finance system: income tax and levies, savings and investment vehicles, property rules, and the credits and thresholds that shape take-home pay and entitlements. It is a reference for education, not personalised advice, and figures such as thresholds, rates and repayment percentages can change with policy updates. Always check the last-reviewed date at the bottom of this page and confirm current figures with Inland Revenue or a qualified adviser before relying on them for a decision.

PAYE

Pay As You Earn, the income tax and ACC earners levy deducted from your wages or salary before you are paid. See the PAYE calculator.

GST

Goods and Services Tax, a 15% tax added to most goods and services in New Zealand. See the GST calculator.

KiwiSaver

New Zealand's voluntary work-based retirement savings scheme, with contributions from you, your employer and the government. See the KiwiSaver calculator.

IETC

The Independent Earner Tax Credit, a tax credit for mid-income earners who do not receive a main benefit or Working for Families.

ACC earners levy

A levy collected through PAYE that funds ACC cover for non-work injuries.

Bright-line test

A rule that taxes the profit on selling residential property within a set period of buying it; the period is 2 years for properties sold from 1 July 2024.

FIF

Foreign Investment Fund rules, which tax certain overseas shares, generally where their cost exceeds NZ$50,000. See the FIF guide.

LVR

Loan-to-Value Ratio, the size of a mortgage compared with the value of the property, as a percentage.

DTI

Debt-to-Income ratio, total borrowing compared with gross income, used by lenders to assess how much you can borrow.

OCR

The Official Cash Rate, the interest rate set by the Reserve Bank of New Zealand that influences mortgage and savings rates.

RWT

Resident Withholding Tax, deducted from interest and dividends at a rate that matches your income tax rate.

ESCT

Employer Superannuation Contribution Tax, the tax on an employer's KiwiSaver contributions.

FBT

Fringe Benefit Tax, paid by employers on non-cash benefits such as a work vehicle available for private use.

PIE

Portfolio Investment Entity, an investment fund taxed at your Prescribed Investor Rate rather than your full income tax rate.

PIR

Prescribed Investor Rate, the tax rate (10.5%, 17.5% or 28%) applied to income from a PIE, based on your recent income.

Marginal tax rate

The tax rate applied to your next dollar of income, as opposed to your average or effective rate.

NZ Super

New Zealand Superannuation, a government pension paid to eligible residents aged 65 and over.

Student loan repayment threshold

The annual income above which student loan repayments of 12% apply; it is $24,128.

Working for Families

Tax credits that top up the income of families with dependent children, abating as family income rises.

Provisional tax

Tax paid in instalments during the year by people whose residual income tax is above the threshold, rather than in a lump sum.

Definitions are general and for education, not advice. Last reviewed 2026-07-02. See also our guides and reference data.