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 Pay Rise Calculator

Quick answer A $5,000 rise on a $65,000 salary keeps about $3,238 a year after PAYE, ACC and KiwiSaver, roughly 65% of it, or $62.26 a week. The rise is taxed at your top rate, which is why the kept share is lower than your average tax rate suggests.

A pay rise looks bigger on paper than it feels in your bank account, because PAYE tax, the ACC earners' levy, KiwiSaver contributions and (if you have one) student loan repayments all take a bite out of the increase before it reaches you. This calculator works out exactly how much of a proposed rise you actually keep. Enter your current annual gross salary and the size of the pay rise, choose your KiwiSaver contribution rate (from not enrolled up to 10%), and say whether you have a student loan. The calculator then shows your gross rise, your extra take-home pay per year and per week, and the percentage of every extra dollar you keep. A detailed breakdown shows exactly where the rise goes: PAYE, ACC levy, KiwiSaver, and student loan repayments, plus your extra take-home pay annually, weekly and fortnightly. It also compares your current and new marginal tax rate, flags whether the rise pushes you into a higher tax bracket, and notes any extra employer KiwiSaver contribution triggered by the increase. Use it before a salary review to set realistic expectations, or to compare a straight pay rise against other options like extra KiwiSaver contributions. Figures are based on current PAYE, ACC and KiwiSaver settings and are indicative only; your actual take-home increase may differ slightly depending on your tax code and pay cycle.

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Updated April 2026 PAYE 2026/27 brackets. ACC 1.75%. KiwiSaver 3.5% default.

1. Current Salary

Current annual salary (gross)

Pay rise amount (annual gross)

2. Deductions

KiwiSaver rate

Student loan?

Your Pay Rise: Gross vs Take-Home

Gross Rise

$5,000/yr

Annual increase

Extra Take-Home
$3,238/yr
Annual after deductions

Extra Per Week

$62.26

Take-home increase

You Keep

65%

Of every extra dollar

Where Your Pay Rise Goes

Gross pay rise$5,000

PAYE on the rise-$1,500 (30.0%)

ACC levy (1.75%)-$88

KiwiSaver (employee)-$175

Student loan-

Extra take-home (annual)$3,238

Extra take-home (weekly)$62.26/wk

Extra take-home (fortnightly)$124.52/fn

Tax Bracket Impact

Current salary$65,000

New salary$70,000

Current marginal rate30%

New marginal rate30%

Crosses bracket?-

Employer KiwiSaver (extra)+$175/yr to KiwiSaver

Total deduction rate on rise35.3% of rise goes to deductions

Summary: -

Understanding Your Pay Rise After Tax

When you receive a pay rise in New Zealand, you do not keep the full amount. PAYE income tax, ACC earners levy, KiwiSaver contributions, and student loan repayments all take a portion. The amount you keep depends primarily on your marginal tax rate: the rate applied to the next dollar you earn.

Marginal Deduction Rates (2026/27)

Salary Range	PAYE	+ ACC	+ KiwiSaver 3.5%	+ Student Loan	You Keep
$0-$15,600	10.5%	12.25%	15.75%	27.75%	72-84c
$15,601-$53,500	17.5%	19.25%	22.75%	34.75%	65-77c
$53,501-$78,100	30%	31.75%	35.25%	47.25%	53-65c
$78,101-$180,000	33%	34.75%	38.25%	50.25%	50-62c
$180,001+	39%	40.75%	44.25%	56.25%	44-56c

You Never Lose Money by Earning More

NZ uses progressive taxation: only the income within each bracket is taxed at that rate. Moving into a higher bracket does not cause your entire income to be taxed at the higher rate. You always take home more money with a pay rise, even if a smaller percentage of the rise is retained.

Related Calculators

Sources: IRD tax rates for individuals (ird.govt.nz). ACC earners levy regulations 2025 (legislation.govt.nz).

This calculator provides indicative estimates using standard PAYE rules. Actual results may vary based on your specific tax code and circumstances.