Income tax on your personal income is a progressive tax in New Zealand. Incomes are taxed in separate income brackets for individuals at 10.5%, 17.5%, 30% and 33%.
As with many other countries, income tax is withheld from wages and salaries in New Zealand, often resulting in refunds payable to taxpayers at the end fo the financial year.
|0 – $14,000
|$14,000 – $48,000
|$48,000 – $70,000
||Income x Tax
|0 – $14,000 =
||$14,000 x 10.5% = $1,470
|$14,000 – $48,000 =
||$18,800 x 17.5% = $5,950
|$48,000 – $70,000 =
||$22,000 x 30% = $6,600
||AB x 33% = AB x 33%
$25,000 through the tax brackets
$50,000 through the tax brackets
$100,000 through the tax brackets
$200,000 through the tax brackets
For more information on Income Tax Rates visit ird.govt.nz
For many people, Kiwisaver will be work-based. This means you'll receive information about Kiwisaver from your employer, and your Kiwisaver contributions will come straight out of your pay.
If you choose to join, contributions are deducted from your pay at the rate of either 3%, 4% or 8% (you choose the rate) and invested for you in a Kiwisaver scheme.
If you're self-employed or not working, you agree with your Kiwisaver provider how much you want to contribute and make payment directly to them.
Your Kiwisaver savings will generally be locked in until; you're eligible for NZ Super (currently 65); or you've been a member for at least 5 years (if you joined over the age of 60).
For more information visit kiwisaver.govt.nz
Accident Compensation Corporation (ACC)
All employes must pay ACC earners levy, this levy is deducted along with PAYE(pay as you earn tax). If you work for a company, they will deduct this earner's levy as part of your PAYE.
For the 2019 - 2020 year the flat rate of earner's levy is $1.39 per $100 (1.39%) with a maximum levy of $1,785.73
(In the 2018-2019 tax year this was $1,755.37)
For more information on ACC visit ird.govt.nz