Aotearoa — PAYE, KiwiSaver, ACC, GST, Company Tax 2025-26
💰 PAYE Withholding (Income Tax + ACC Levy)
New Zealand uses a 5-bracket progressive system (10.5%-39%). No tax-free threshold! Plus ACC earners' levy 1.67% (capped at NZ$152,790). NZ taxes worldwide income for residents. FY 2025-26 (Apr 1 – Mar 31).
NZ$
📌 PAYE 2025-26:5 Brackets (Resident): 10.5% (≤NZ$15,600) → 17.5% → 30% → 33% → 39% (≥NZ$180,001). No tax-free threshold! Every dollar is taxed from dollar one. ACC Earners' Levy: 1.67% of taxable earnings, capped at NZ$152,790/year (max NZ$2,551.59). No capital gains tax (except bright-line property rule: 5-year/10-year). No stamp duty, no estate tax, no social security tax.Non-residents: Taxed only on NZ-source income; withholding rates vary. Tax year: April 1 to March 31. IRD administers all taxes. Minimum wage: NZ$23.15/hour. Working for Families: Tax credits for low/middle-income families with children.
📊 New Zealand Tax Rates Overview 2025-26
Tax Type
Rate
Details
Income Tax (Lowest)
10.5%
NZ$0 – NZ$15,600
Income Tax (Low)
17.5%
NZ$15,601 – NZ$53,500
Income Tax (Mid)
30%
NZ$53,501 – NZ$78,100
Income Tax (High)
33%
NZ$78,101 – NZ$180,000
Income Tax (Top)
39%
Above NZ$180,000
ACC Earners' Levy
1.67%
Capped at NZ$152,790
KiwiSaver (Employee)
3%
Voluntary (default)
KiwiSaver (Employer)
3%
Compulsory (CEC)
GST
15%
Goods & Services Tax
Company Tax
28%
Standard corporate rate
Māori Authority
17.5%
Iwi/Māori entities
FBT (Fringe Benefits)
up to 63.93%
Non-cash benefits
ESCT
10.5-39%
Employer super contribution tax
Capital Gains
None*
*Except bright-line property
Stamp Duty
None
Abolished
📌 Tax System Overview:
New Zealand has one of the simplest tax systems in the OECD. Key features: No capital gains tax (except bright-line property rule); No stamp duty; No estate/death duty; No social security tax (unlike Australia's Medicare Levy); No tax-free threshold (every dollar taxed). The tax system is administered by IRD (Inland Revenue Department). NZ has a broad-base, low-rate (BBLR) approach — wide tax base with relatively low rates. R&D Tax Credit: 15% of eligible R&D expenditure (max NZ$12M/year). New asset investment: 20% additional first-year deduction (from May 2025). Small business: Cash accounting for GST if turnover ≤NZ$500K. DTA treaties: With 40+ countries including China, Australia, UK, US.
🪘 KiwiSaver Calculator (Retirement Savings)
KiwiSaver: NZ's voluntary retirement savings scheme (since 2007). Employee default: 3%. Employer compulsory: 3%. Government top-up: $0.25 per $1 (max NZ$260.72/year). From April 2026: defaults rise to 3.5%.
NZ$
📌 KiwiSaver 2025-26:Employee: Default 3% of gross salary (opt-out within 28 days of starting). Can choose 3%, 4%, 6%, 8%, or 10%. Employer: Compulsory Employer Contribution (CEC) at 3% of gross salary. Government: $0.25 per $1 contributed (max NZ$260.72/year). Income >NZ$180,000: no government contribution. From April 2026: Default rate rises to 3.5%. From April 2028: Default rises to 4%. ESCT: Employer contributions taxed at 10.5%-39% (based on employee's income). Withdrawal: At age 65 (or for first home purchase after 3 years). Funds: Choose from conservative, balanced, or growth funds. Portable: Stays with you when changing jobs. Not mandatory: Employees can opt out entirely.
🧾 GST Calculator (Goods & Services Tax)
New Zealand GST rate: 15%. One of the broadest bases in the world — few exemptions. Registration threshold: NZ$60,000/year. Exports are zero-rated.
NZ$
📌 GST 2025-26:15% (Standard): Most goods, services, and digital products. NZ has one of the broadest GST bases in the OECD — very few exemptions. GST-inclusive pricing: All consumer prices include GST. To extract GST: multiply by 3/23 (e.g., NZ$115 → NZ$15 GST). Registration threshold: NZ$60,000/year turnover (mandatory). Zero-rated: Exports, financial services, land transactions between registered persons. Input tax credits: Registered businesses claim GST on purchases. Filing: Monthly, bi-monthly, or half-yearly. Cash accounting: Available for businesses with turnover ≤NZ$500K. Cross-border services: GST applies to remote services and low-value imported goods (since Oct 2019). No reduced rates — food, clothing, etc. all taxed at 15%.
🏢 Company Tax (Corporate Income Tax)
Corporate tax: 28% (general). Māori Authority: 17.5%. No capital gains tax (except bright-line property). R&D tax credit: 15%.
NZ$
🏠 FBT + ACC Employer + ESCT
Fringe Benefit Tax: up to 63.93%. ACC employer levy: 1.67%+ (by industry risk). ESCT on employer KiwiSaver contributions: 10.5%-39%.
NZ$
📌 Corporate & Employer Tax Notes:Company Tax (28%): Residents taxed on worldwide income; non-residents on NZ-source only. No CGT (except bright-line: 5 years for residential, 10 years for new builds). R&D Tax Credit: 15% of eligible R&D spend (max NZ$12M/year; min NZ$50K). New asset deduction: 20% additional first-year deduction (from May 2025). Losses: Can be carried forward indefinitely; continuity of ownership rules apply. FBT: 49% (standard) or 63.93% (alternate rate for non-associated). Applies to company cars, low-interest loans, entertainment. ACC: Employer levy 1.67% base + industry risk loading (construction up to 5%+). ESCT: Tax on employer KiwiSaver contributions, 10.5%-39% based on employee income. IRD: Inland Revenue Department. Imputation credits: Franking system prevents double taxation of dividends. DTA: 40+ tax treaties.