How it works
Annualises the entered income by frequency, applies the selected tax year and tax code, adds ACC, and then estimates KiwiSaver and student loan deductions for a take-home pay view. PAYE covers income tax withheld on wages and salaries. Employers file payroll information with IRD through payday filing.
Why does the result show PAYE + ACC? Because both are usually deducted through payroll before your pay reaches your bank account. PAYE is your income tax withholding, and ACC is the earners' levy that is also taken from wages and salaries.
MethodUses personal tax brackets through payroll
FilingPayday filing required for employers
Use the calculator
Use the live tool above to enter your figures, compare outcomes, and sense-check the result before you rely on it for planning. This page is built for employees, payroll teams, and employers checking annual PAYE estimates.
- Use the right tax code before relying on estimates.
- Student loans, KiwiSaver, and ACC can materially change take-home pay.
- Hourly income needs sensible hours-per-week input for accurate annualisation.
Gross pay vs net pay example
Think about Sarah starting a new job in Auckland. Her employer tells her, “We will pay you $1,000 a week before tax.” That before-deductions amount is Sarah's gross pay.
When payday comes, Sarah does not actually receive the full $1,000 in her bank account, because payroll first works out the normal deductions taken from wages.
- Gross pay: $1,000
- PAYE + ACC: $195
- KiwiSaver: $30
- Student loan: $0
So Sarah's pay is worked out like this:
- $1,000 gross pay
- minus $195 for PAYE + ACC
- minus $30 for KiwiSaver
- equals $775
That $775 is the amount that actually lands in Sarah's bank account. That final after-deductions amount is her net pay.
So in simple terms:
- Gross pay means the amount before PAYE, ACC, KiwiSaver, student loan, or other deductions are taken out.
- Net pay means the amount after those deductions have already been taken out.
This is why the calculator offers both options. Some people know their pay before deductions, so they should enter gross pay. Other people think in terms of what they actually receive in their bank account, so they may want to enter net pay instead.
For example, Sarah might later say, “I only care about taking home about $775 a week.” In that case, the calculator can work backwards from her net pay and estimate that she would need a gross pay of about $1,000 a week to end up there.
That is the key difference: gross pay is the starting pay before deductions, and net pay is what is left after deductions.
NZ tax codes explained with examples
Your tax code changes how PAYE, ACC, and student loan deductions are withheld. These are practical examples only, but they help explain when each code is commonly used.
MMain income tax code. Example: you work one full-time job at a retail store and this is your main salary or wage, so you usually use M.
M SLMain income with student loan deductions. Example: your main job is with a logistics company and you still have a New Zealand student loan, so you would often use M SL.
MEMain income with the independent earner tax credit conditions applying. Example: you have one main job, no student loan, and your income sits in the qualifying ME range, so payroll may use ME.
ME SLMain income with both student loan and ME conditions. Example: you have one main job, still repay a student loan, and your earnings fall within the ME credit range, so ME SL may apply.
SB / SB SLSecondary income code for lower secondary-income bands. Example: your main job is elsewhere, and you also do a small weekend job at a cafe. If you have no student loan you may use SB; if you do, SB SL.
S / S SLSecondary income code for the next income band up. Example: you already have a main weekday job and also pick up a regular second job with moderate extra income, so your second employer may use S or S SL.
SH / SH SLSecondary income code for a higher secondary-income band. Example: you have a strong main salary and also contract one evening a week for another employer, so that second income may fall under SH or SH SL.
ST / ST SLSecondary income code for an even higher secondary-income band. Example: your main job already pays well into the upper tax bands and your side income is taxed at a higher withholding rate, so ST or ST SL may be used.
SA / SA SLSecondary income code for the top secondary-income band. Example: you already earn at the top personal tax rate in your main role and take on extra PAYE income on the side, so the second payer may use SA or SA SL.
NDNo deductions. Example: a very limited payroll situation where PAYE is not meant to be deducted in the normal way, such as a specific exempt arrangement approved for that payment type.
NSWNo schedular withholding. Example: a contractor payment where schedular withholding does not apply because the worker has approval to receive payments without withholding.
CAECasual agricultural employee code. Example: you help with seasonal farm work for a short period and the employer uses the special casual agricultural employee treatment.
EDWElection day worker code. Example: you are paid for temporary election-day work and that specific payroll category uses EDW rather than a standard salary tax code.
Official IRD guidance
Check the official IRD guidance for the latest published rules, thresholds, timing, and definitions that apply to PAYE.
Disclaimer
This calculator provides estimates only and does not replace official IRD calculations.
- Annualized estimate only.
- Secondary tax codes use standard flat secondary withholding rates.
- Student loan is estimated using the current NZ-based threshold and apportioned to this income when other income is entered.