What is payroll giving?

Payroll giving lets you donate to approved donee organisations straight from your pay. You receive an immediate tax credit of a third of the donation in the same pay, rather than waiting to claim it at the end of the year.

How much does a payroll donation actually cost me?

Because you get a 33.33% tax credit on the spot, a $30 donation reduces your take-home by only about $20. The charity still receives the full $30; the credit covers the other third.

Is payroll giving better than claiming later?

The credit rate is the same (33.33%), but payroll giving gives it to you immediately each pay rather than as a refund after the tax year, and there is no need to keep receipts or file a claim.

Payroll Giving Calculator

This calculator works out the tax credit and the real net cost of donating to charity through payroll giving in New Zealand. Payroll giving lets you give straight from your pay, and you receive an immediate tax credit of a third (33.33%) of your donation in that same pay, rather than waiting to claim it after the tax year ends. You enter your donation amount per pay and how often you get paid (weekly, fortnightly or monthly), and the calculator returns your net cost per pay after the credit, the tax credit itself, and how much you donate and how much it actually costs you over a full year. Because your employer applies the credit through PAYE before you see your take-home pay, there is nothing to claim later and no receipts to keep. For example, a $30 fortnightly donation earns a credit of about $10, so your take-home falls by only $20, while the charity still receives the full $30; over a year that adds up to $780 donated at a net cost to you of roughly $520. Use it to see how far your giving stretches, or to compare payroll giving with claiming the credit at year end. Keep in mind your employer needs to offer payroll giving to approved donee organisations, and the figures here are estimates only.

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Donation amount per pay

Pays per year

net cost to you per pay (after the tax credit)

Tax credit per pay$0

Donated per year$0

Net cost per year$0

Payroll giving gives a 33.33% tax credit immediately in your pay. The charity still receives the full donation. Your employer must offer payroll giving and donate to approved donee organisations. Estimate only.

How it works

For every dollar you donate through payroll giving, you receive a tax credit of 33.33 cents in the same pay, reducing the PAYE taken from your wages. So your take-home falls by only about two thirds of the donation. The calculator shows the credit and net cost per pay, and the donated and net-cost totals across the year.

Worked example

Donating $30 a fortnight, the tax credit is about $10, so your take-home drops by only $20. Over a year you donate $780 to the charity, at a net cost to you of about $520.

Related calculators

Donation Tax Credit Calculator: claim donations.
PAYE Calculator: your pay.
Take Home Pay Calculator: net pay.
Budget Calculator: your budget.

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