Are PAYE rates different from income tax rates?
PAYE is the payroll withholding system. It uses income tax rates, plus other deductions such as ACC, student loans, or KiwiSaver where relevant.
New Zealand PAYE Tax Rates 2025-26 and 2026-27
PAYE uses New Zealand progressive income tax brackets, then payroll also adds the ACC earner levy where it applies.
Updated 6 June 2026
Quick answer - current tax brackets
| Annual taxable income | 2025-26 rate | 2026-27 rate | Tax on this band |
|---|---|---|---|
| $0 to $15,600 | 10.5% | 10.5% | $1,638 max |
| $15,601 to $53,500 | 17.5% | 17.5% | $6,632.50 max |
| $53,501 to $78,100 | 30% | 30% | $7,380 max |
| $78,101 to $180,000 | 33% | 33% | $33,627 max |
| $180,001 and over | 39% | 39% | No upper cap |
Income tax brackets did not change between 2025-26 and 2026-27.
How marginal rates work
New Zealand taxes income in slices. If you earn $70,000, only the part above $53,500 is taxed at 30%. The earlier slices are still taxed at 10.5% and 17.5%.
Your marginal rate is the rate on your next dollar. Your effective rate is total income tax divided by total income, so it is usually lower than your marginal rate.
ACC levy
PAYE deductions usually include ACC earner levy as well as income tax. For 2026-27 the levy is 1.75%, applied to earnings up to $156,641. The maximum annual levy is $2,741.22.
For 2025-26 the levy was 1.67%, capped at $152,790 of earnings.
What changed in 2026-27
| Item | 2025-26 | 2026-27 |
|---|---|---|
| Income tax brackets | Same five brackets | No bracket change |
| ACC earner levy | 1.67% | 1.75% |
| ACC earnings cap | $152,790 | $156,641 |
| Minimum wage context | $23.50/hr adult rate | $23.95/hr adult rate |
Calculate PAYE
Use the TaxPop PAYE Calculator for exact weekly, fortnightly, monthly, or annual take-home pay.
Sources: IRD individual tax rates, IRD ACC earner levy rates.
Related pages
FAQs
Did NZ tax brackets change in 2026-27?
No. The personal income tax brackets are the same as 2025-26.
Does PAYE include ACC?
Payroll PAYE calculations generally include the ACC earner levy for salary and wage earners.