Pay Rise Calculator
See what a raise really means in New Zealand. Because tax is progressive, not all of a pay rise reaches your bank account — this shows exactly how much extra take-home you'd keep.
Of a gross rise, about goes to extra tax and deductions.
| Per year | Current | New | Change |
|---|---|---|---|
Why you don't keep all of a pay rise
New Zealand uses progressive tax brackets: the extra income from a raise is taxed at your marginal rate — the rate on your top slice of income — which is usually higher than your average (effective) rate. If your raise pushes part of your income into a higher bracket, only the portion above the threshold is taxed at the higher rate. ACC levy, KiwiSaver and student loan also apply to the extra income, so your take-home rise is smaller than the gross rise.
Try the full pay calculator for a complete breakdown, or the reverse calculator to find the gross needed for a target take-home.