Every year on 1 April, New Zealand's tax year resets and new rates take effect. For 2026-27 the changes are significant — KiwiSaver default contributions have risen, the ACC earner levy has increased, and minimum wage has gone up. Here is a plain-English summary of everything that changed.
From 1 April 2026, the default KiwiSaver contribution rate for both employees and employers increased from 3% to 3.5%. This applies automatically to anyone who has not chosen a different rate. If you want to stay at 3% you can apply for a temporary contribution reduction through myIR — this opt-down is available for 3 to 12 months and can be renewed. The rate will rise again to 4% from 1 April 2028.
The ACC earner levy increased from 1.67% to 1.75% of liable earnings from 1 April 2026. The maximum liable earnings threshold also rose from $152,790 to $156,641, meaning the maximum ACC levy any individual pays is now $2,741.22 per year. This levy is deducted automatically alongside PAYE for employees.
The adult minimum wage increased from $23.50 to $23.95 per hour from 1 April 2026. The training and starting-out minimum wage also rose to $19.16 per hour. Employers must update pay rates for any staff on minimum wage from the first pay period on or after 1 April 2026.
From 1 July 2025 the annual KiwiSaver government contribution was reduced from $521.43 to $260.72. The contribution rate also changed from 50 cents to 25 cents for every dollar you contribute. Earners above $180,000 are no longer eligible for the government contribution at all.
From 1 April 2026 employers must make compulsory KiwiSaver contributions for eligible employees aged 16 and 17. Previously employer contributions were only mandatory for employees aged 18 and over.
The in-work tax credit increased by $50 per week from 1 April 2026. This increase is temporary and linked to petrol prices — it will remain in place until the price of 91 octane petrol drops below $3 for four consecutive weeks or until April 2027 whichever comes first.
Income tax brackets and rates are unchanged for 2026-27. The five bands are: 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. The GST rate stays at 15% and the registration threshold remains at $60,000. The company tax rate is still 28%. The student loan repayment rate remains 12% above the $24,128 threshold.
Check official IRD guidance for the latest published rules, thresholds, timing, and definitions before acting on any of these changes.
This page provides a summary only and does not replace official IRD guidance. Always confirm rates and thresholds with IRD before making financial decisions.