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

This calculator shows which New Zealand income tax bracket your income falls into, along with your marginal tax rate, your effective tax rate, and the actual income tax you owe across every band for the 2026/27 tax year. New Zealand runs a progressive tax system, so it is easy to assume your whole income is taxed at your top rate; in reality, each rate only applies to the slice of income within that band, and this tool makes that distinction clear. Enter your annual taxable income and the calculator returns your top tax bracket, described as your marginal rate since it is the rate charged on your next dollar earned, together with the income tax due in dollars and your effective rate, which is total tax divided by total income and is always lower than your marginal rate. A short note confirms exactly what rate applies to your last dollar earned, and a table below breaks down all five current income bands and rates so you can see how your figure fits against the full scale. Use this to sense-check your pay, plan a pay rise, or weigh up a job offer before you accept it. The result covers income tax only; it excludes the ACC Earners' Levy and the Independent Earner Tax Credit, so for your full take-home pay figure, use the PAYE Calculator instead.

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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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Reviewed and maintained. Last reviewed 2026-07-02 and checked on a twice-monthly cycle against IRD, RBNZ and Stats NZ. How we keep data current.