Frequently Asked Questions
Everything you need to know about NZ Pay Calculator and New Zealand taxation
General Questions
What is NZ Pay Calculator?
NZ Pay Calculator is a free online tool that helps New Zealand workers calculate their take-home pay after PAYE tax, ACC levies, KiwiSaver contributions, and student loan repayments. It provides accurate calculations based on current NZ tax rates and regulations.
How accurate are the calculations?
Our calculations are based on official IRD tax rates and thresholds. However, this is an estimate tool and should not replace professional tax advice. Always consult with a tax professional for complex situations.
Is this calculator free to use?
Yes, NZ Pay Calculator is completely free to use. There are no hidden fees, registration requirements, or premium features.
PAYE Tax Questions
What is PAYE?
PAYE (Pay As You Earn) is New Zealand's system for collecting income tax and other deductions from your salary or wages. Your employer deducts these amounts before paying you, so you receive your net pay after deductions.
What are the current tax rates?
For the 2025/26 tax year: $0-$14,000 (10.5%), $14,001-$48,000 (17.5%), $48,001-$70,000 (30%), and $70,001+ (33%). These rates may change each tax year.
What is the difference between marginal and effective tax rates?
Your marginal tax rate is the rate you pay on your next dollar of income. Your effective tax rate is the average rate you pay on your total income. The effective rate is usually lower than the marginal rate due to progressive taxation.
What tax code should I use?
Most people use tax code 'M' for their main job. Use 'ME' if you're eligible for the Independent Earner Tax Credit, 'MSL' if you have a student loan, or 'SB' for secondary jobs. Check with IRD if you're unsure.
KiwiSaver Questions
What is KiwiSaver?
KiwiSaver is New Zealand's voluntary retirement savings scheme. It helps you save for retirement with contributions from you, your employer, and the government.
What are the contribution rates?
You can contribute 3%, 4%, 6%, 8%, or 10% of your gross salary. Your employer must contribute at least 3% (and can contribute more). The government contributes $521.43 annually if you're eligible.
Can I opt out of KiwiSaver?
Yes, you can take a savings suspension for 3-12 months, or opt out permanently if you're eligible. However, you'll miss out on employer and government contributions.
When can I access my KiwiSaver?
You can access your KiwiSaver when you turn 65, or earlier in special circumstances like financial hardship, serious illness, or permanent emigration.
Student Loan Questions
How much do I repay on my student loan?
You repay 12% of your income above the repayment threshold. For the 2025/26 tax year, the threshold is $22,828. This means you only start repaying when you earn more than this amount.
Can I make voluntary repayments?
Yes, you can make voluntary repayments at any time. These are in addition to your compulsory repayments and can help you pay off your loan faster and reduce interest.
What happens if I move overseas?
If you move overseas for more than 6 months, you may need to make repayments based on your worldwide income. Contact StudyLink for specific requirements.
ACC Levy Questions
What is the ACC levy?
The ACC (Accident Compensation Corporation) levy is a contribution that helps fund New Zealand's accident compensation scheme. It covers medical treatment, rehabilitation, and compensation for work-related injuries.
How much is the ACC levy?
The ACC levy rate varies by industry and is calculated as a percentage of your gross earnings. The average rate is around 1.39% for most employees, but can range from 0.67% to 8.87% depending on your industry.
Is ACC levy compulsory?
Yes, the ACC levy is compulsory for all employees and self-employed people in New Zealand. It's automatically deducted from your pay by your employer.
Technical Questions
How often are tax rates updated?
Tax rates and thresholds are typically updated annually in the government budget. Our calculator is updated as soon as new rates are announced and become effective.
Can I save my calculations?
Yes, you can download your results as a CSV file, share them via link, or print them for your records. Your calculations are not stored on our servers for privacy reasons.
What browsers are supported?
Our calculator works on all modern browsers including Chrome, Firefox, Safari, and Edge. For the best experience, we recommend using the latest version of your browser.
Is my data secure?
Yes, we take your privacy seriously. We don't store your salary information or calculation results on our servers. All calculations are performed locally in your browser.
Still Have Questions?
Can't find the answer you're looking for? Here are some helpful resources:
For specific tax advice, we recommend consulting with a qualified tax professional or accountant.