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.

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 Bracket Calculator

See which New Zealand income tax bracket your income falls into, your marginal and effective tax rates, and the income tax due across every band. New Zealand uses a progressive system, so each rate applies only to the slice of income within its band, not your whole income.

Updated April 2026 2026/27 income tax rates applied.

Annual taxable income

30%

your top tax bracket (marginal rate)

Income tax$0

Effective rate0%

Income tax only. Excludes the ACC Earners' Levy and the IETC. For full take-home pay, use the PAYE Calculator.

NZ income tax brackets (2026/27)

Income band	Rate
$0 to $15,600	10.5%
$15,601 to $53,500	17.5%
$53,501 to $78,100	30%
$78,101 to $180,000	33%
Over $180,000	39%

Marginal vs effective rate

Your marginal rate is the rate on your next dollar, set by the top band you reach. Your effective rate is total tax divided by total income, and it is always lower because the income in the lower bands is taxed at lower rates. Earning a dollar more never reduces your take-home pay.

Worked example

On $70,000, you pay 10.5% on the first $15,600, 17.5% on the next $37,900, and 30% on the remaining $16,500. That is about $14,020 of income tax, a marginal rate of 30% and an effective rate of about 20%.

Related calculators

PAYE Calculator: full take-home pay with ACC and KiwiSaver.
Income Tax Calculator: income tax with deductions.
Marginal Rate Visualiser: see how each band applies.
NZ Tax Rates: full reference of current rates.

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