NZ Tax Changes April 2026 — KiwiSaver, ACC and Minimum Wage
Several important tax and payroll changes took effect on 1 April 2026. Here is a plain-English breakdown of everything that changed and what it means for you.
If you are an employee, employer or sole trader in New Zealand, several important tax and payroll changes took effect on 1 April 2026. Some of these changes reduce your take-home pay slightly — particularly the KiwiSaver and ACC increases — while the minimum wage rise will benefit lower-income workers. Here is a plain-English breakdown of everything that changed and what it means for you.
KiwiSaver default rate rose to 3.5%
The biggest change for most workers is the KiwiSaver default contribution rate rising from 3% to 3.5% for both employees and employers. If you have not actively chosen a rate this will happen automatically. The good news is you can apply through myIR to temporarily reduce your contribution back to 3% for up to 12 months if the extra deduction puts pressure on your take-home pay. Worth noting — the rate is legislated to rise again to 4% in April 2028.
ACC earner levy increased to 1.75%
The ACC earner levy ticked up from 1.67% to 1.75% of your liable earnings. For someone on $70,000 that is an extra $56 per year — noticeable but not dramatic. The income cap also rose to $156,641 meaning the maximum any individual pays in ACC this year is $2,741.22.
Minimum wage increased to $23.95 per hour
The adult minimum wage increased from $23.50 to $23.95 per hour — a 45 cent rise. For someone working 40 hours a week that adds up to $936 extra per year before tax. The training and starting-out wage also rose to $19.16 per hour. Employers need to make sure payroll is updated from the first pay run on or after 1 April.
KiwiSaver government contribution halved from July 2025
If you rely on the KiwiSaver government contribution to boost your retirement savings, be aware it was halved from July 2025. The annual maximum dropped from $521.43 to $260.72 and the rate changed from 50 cents to 25 cents per dollar contributed. Higher earners above $180,000 no longer receive it at all.
Employer KiwiSaver contributions now apply to 16 and 17 year olds
A quieter but meaningful change — employers must now make compulsory KiwiSaver contributions for eligible 16 and 17 year old employees from 1 April 2026. Previously this was only mandatory from age 18. If you employ young workers who are KiwiSaver members make sure your payroll reflects this.
What stayed the same
Not everything changed. Income tax brackets are identical to last year — the same five bands apply for 2026-27: 10.5% on income up to $15,600, 17.5% up to $53,500, 30% up to $78,100, 33% up to $180,000 and 39% above that. GST remains at 15%, the registration threshold stays at $60,000, company tax is still 28% and student loan repayments continue at 12% above the $24,128 threshold.
For detailed calculations based on your own income use the free TaxPop calculators — PAYE calculator for your take-home pay, KiwiSaver calculator to see your new contribution amounts, and ACC levy calculator to check your levy for the year.