The $0 tax and KiwiSaver cheat sheet
Most NZ employees pay income tax, an ACC levy and a KiwiSaver contribution out of every pay, and some also repay a student loan. This page puts the 2026/27 figures (1 April 2026 to 31 March 2027) in one place.
Income tax brackets
Each rate only applies to the slice of income inside that bracket, not to your whole pay. These are the resident rates for the year. So if you earn $60,000, only the part above $53,500 is taxed at 30%. The rest is taxed at the lower rates.
| Yearly income | Tax rate |
|---|---|
| Up to $15,600 | 10.5% |
| $15,601 to $53,500 | 17.5% |
| $53,501 to $78,100 | 30% |
| $78,101 to $180,000 | 33% |
| Over $180,000 | 39% |
ACC earner levy
The levy is 1.75% of your pay, or $1.75 for every $100. It stops at earnings of $156,641 a year, so the most anyone pays is $2,741.22. Your employer takes it out with your PAYE, so it is not a separate bill. You do not need to claim it or pay it yourself.
Student loan repayments
If you have a student loan, you repay 12 cents of every dollar you earn above the yearly repayment threshold. Inland Revenue sets the threshold each year, so check the current figure on its student loan pages. Tax code SL (for example M SL) tells your employer to take it out of your pay.
KiwiSaver contributions
- The default employee and employer rates both went up from 3% to 3.5% for pay days on or after 1 April 2026.
- Both rise again to 4% on 1 April 2028.
- You can apply to stay on 3% for a set period. It then goes back to the default rate.
- The government adds 25 cents for every dollar you put in, up to $260.72 a year. People earning over $180,000 do not get it.
Tax codes in short
Your tax code tells your employer how much PAYE to take. M is the usual code for your main job. M SL means main job plus a student loan. If you move from M SL to M when your loan is paid off, the student loan deduction stops. Secondary jobs use a different set of codes.
Worked example: $70,000 salary
Assumptions: tax code M, a 3.5% KiwiSaver employee rate, no student loan, a full year of work.
- Income tax: $1,638.00 on the first $15,600, plus $6,632.50 on the next $37,900, plus $4,950.00 on the last $16,500. Total $13,220.50.
- ACC levy: 1.75% of $70,000 is $1,225.00.
- KiwiSaver: 3.5% of $70,000 is $2,450.00.
- Take-home pay: $70,000 less $16,895.50 is $53,104.50 a year.
Your employer also pays 3.5%, or $2,450.00, into your KiwiSaver on top of the salary. This is a simple estimate, so your payslip may differ slightly.
Do this next
- Check the tax code on your payslip. It should be M, or M SL if you have a student loan.
- Look at your KiwiSaver line on the payslip and confirm it is 3.5% or the rate you chose.
- Log in to your KiwiSaver provider and check that your employer contributions are arriving.
- If you are unsure about your code, ask your employer or check with Inland Revenue.
- Work out your own take-home pay with our calculator below.
The catch
These figures are the standard ones. Your real pay can differ if you have a second job, a different tax code, extra KiwiSaver savings, or income that changes through the year. The higher KiwiSaver rate also means a smaller pay packet today in return for more savings later.
This is general information, not personal advice.
To run your own numbers, try our take-home pay calculator, or print the free NZ tax and KiwiSaver cheat sheet.
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Last reviewed 3 October 2026. Written by The Daily Kiwi from the official pages listed above.