NZ Tax Brackets and Income Tax Rates 2026/27

New Zealand taxes income in bands. The first $15,600 is taxed at 10.5%, income from $15,601 to $53,500 at 17.5%, from $53,501 to $78,100 at 30%, from $78,101 to $180,000 at 33%, and anything above $180,000 at 39%. Each rate applies only to the income that falls inside its band.
Want to see it applied to your own pay? Use our [Salary Calculator].

Income tax rates for 2026/27

Table income	Tax rate	Most tax paid in this band
$0 – $15,600	10.5%	$1,638.00
$15,601 – $53,500	17.5%	$6,632.50
$53,501 – $78,100	30%	$7,380.00
$78,101 – $180,000	33%	$33,627.00
Over $180,000	39%	No upper limit

The NZ tax year runs from 1 April to 31 March. The rates above apply to the 2026/27 year.

How tax bands work ?

A common worry is that a pay rise could push you into a higher bracket and leave you with less money. That does not happen. Imagine your income as a stack of dollars. The first dollars go into the lowest band, the next into the second band, and so on. Only the dollars that sit above a band’s start are taxed at the higher rate.

How a $100,000 income is split across the tax bands

10.5%

17.5%

30%

33%

$0 to
$15,600

$15,601 to
$53,500

$53,501 to
$78,100

$78,101 to
$100,000

Tax paid on each slice: $1,638.00 + $6,632.50 + $7,380.00 + $7,227.00 = $22,877.50

Worked example: $70,000 income

Slice of income	Amount in slice	Rate	Tax
First $15,600	$15,600	10.5%	$1,638.00
Next $37,900	$37,900	17.5%	$6,632.50
Remaining $16,500	$16,500	30%	$4,950.00
Total income tax	$70,000	18.9% (effective)	$13,220.50

That is an effective tax rate of about 18.9%, even though the top slice was taxed at 30%.

Effective tax rate at different incomes

Income tax only, before ACC, KiwiSaver and student loan.

Income	Income tax	Effective rate
$45,000	$6,783.00	15.1%
$60,000	$10,220.50	17.0%
$70,000	$13,220.50	18.9%
$100,000	$22,877.50	22.9%
$200,000	$57,077.50	28.5%

What happens when you get a pay rise?

Say your income goes from $50,000 to $55,000. Tax on $50,000 is $7,658.00. Tax on $55,000 is $8,720.50. Your extra $5,000 costs $1,062.50 in tax, because $3,500 of it is taxed at 17.5% and $1,500 at 30%. You keep about $3,937.50 of the rise before ACC and other deductions. You are always better off with the raise.

ACC earners’ levy

On top of income tax, an ACC earners’ levy is taken from your pay. For 2026/27 it is 1.75% of your earnings, on earnings up to $156,641. The most anyone pays is $2,741.22 for the year.

1.75% ACC levy rate for 2026/27

$156,641 Maximum earnings the levy applies to

$2,741.22 The most anyone pays in a year

Other things that can change what you pay

Tax code: the wrong code can mean too little or too much tax is taken out. See our Tax Codes guide.
KiwiSaver and student loan: these are separate deductions. See our KiwiSaver and Student Loans guides.
Second jobs: extra income is taxed using secondary tax codes.
Tax credits: some people qualify for credits that reduce tax.

Frequently asked questions

10.5% up to $15,600, 17.5% up to $53,500, 30% up to $78,100, 33% up to $180,000 and 39% above that.

39%, on income above $180,000.

No. Only the part of your income above thket threse brachold is taxed at the higher rate.

About $10,220.50 in income tax, which is an effective rate of about 17%. ACC adds about $1,050.

1 April, and it ends on 31 March.

Not always. The rates can stay the same for several years, but the ACC levy and some thresholds update each April, so check the year shown on this page.

Related calculators and guides

Disclaimer

This guide is general information for the 2026/27 tax year and is not tax advice. Confirm your situation with Inland Revenue (ird.govt.nz) or a tax professional.

Last updated: 10/19/2026