Question 1

Why doesn't this match my payslip exactly?

Accepted Answer

There are a few reasons your payslip may differ: per-period rounding (employers round PAYE to the nearest cent each pay period), IRD PAYE tables vs formula (many payroll systems use pre-rounded tables), and variable income such as overtime, bonuses, or commissions. The typical variance is a few dollars per pay period. For annual totals, the calculator matches IRD formulas exactly.

Question 2

How are the tax rates calculated?

Accepted Answer

New Zealand uses a progressive tax system. Your income is split into brackets, and each bracket is taxed at a different rate: $0–$15,600 at 10.5%, $15,601–$53,500 at 17.5%, $53,501–$78,100 at 30%, $78,101–$180,000 at 33%, and $180,001+ at 39%. You only pay the higher rate on the portion of income within that bracket.

Question 3

What about employer KiwiSaver tax (ESCT)?

Accepted Answer

Employer Superannuation Contribution Tax (ESCT) is the tax your employer pays on their KiwiSaver contributions. It does not affect your take-home pay — it's deducted from your employer's contribution before it goes into your fund. It does reduce the amount that ends up in your KiwiSaver balance. The Better Money Time Machine projection accounts for ESCT when estimating your future KiwiSaver balance.

Question 4

What's included in this calculator?

Accepted Answer

Included: PAYE income tax (all five brackets), ACC earners’ levy ($1.67 per $100, capped at $152,790), KiwiSaver employee contributions (3%, 3.5%, 4%, 6%, 8%, or 10%), student loan repayments (12% above $24,128), and Independent Earner Tax Credit (IETC). Not included: secondary tax codes, irregular bonuses, Working for Families, charitable donation rebates, overseas tax credits, or contractor/self-employed income.

Question 5

What are the current tax rates and thresholds?

Accepted Answer

For the 2025–2026 tax year: ACC earners’ levy is $1.67 per $100 (max liable income $152,790). Student loan repayment is 12% above $24,128/year. KiwiSaver default employee rate is 3% (increasing to 3.5% from April 2026) with a 3% employer match. IETC is $520/year for income between $24,000 and $66,000, phasing out between $66,000 and $70,000.

Question 6

How accurate is this calculator?

Accepted Answer

Annual figures match IRD formulas exactly. Per-period amounts (weekly, fortnightly, monthly) may differ from your payslip by a few dollars due to rounding and table-based calculations. This calculator is best used for planning and comparison — such as understanding how a pay rise affects your take-home, or comparing KiwiSaver contribution rates.

PAYE Calculator FAQ