How the PAYE calculator works.
Sources, methodology, and the small print behind every line in your breakdown.
QUESTIONS
Frequently asked questions
Why doesn't this match my payslip exactly?
We calculate annual tax cleanly and divide by your pay periods. Real payroll software calculates each period independently using PAYE tables. Over a year the totals are within a dollar or two, but any individual fortnight can differ.
Your employer may also be on the IR348 (PAYE) round-up rules, where small amounts are rounded each pay period. If you want to reconcile a single payslip, your employer's payroll provider is the source of truth.
Which tax year is this calculator using?
We use the current NZ tax year (1 April – 31 March), with rates and brackets sourced from the IRD website. ACC earner's levy auto-switches between 2025-26 and 2026-27 rates on 1 April. KiwiSaver rates auto-switch on the legislated dates — April 2026 (3 → 3.5%) and April 2028 (3.5 → 4%).
How is KiwiSaver calculated?
We deduct your chosen employee contribution rate from gross pay. Employer contributions are calculated separately and shown beneath your take-home figure — they go to your KiwiSaver account, not your bank.
ESCT (Employer Superannuation Contribution Tax) is deducted from the employer contribution at your bracket-specific rate, so the number you see in your KiwiSaver is net of ESCT.
How does student loan repayment work?
If you have a student loan, IRD takes 12% of every dollar you earn above $24,128 per year (the current repayment threshold). The calculator switches this on if you tick the student-loan box in the input form.
What about the Independent Earner Tax Credit (IETC)?
IETC is a $520-per-year credit for people earning between $24,000 and $70,000 with no benefit, no working-for-families, and no student-loan-only income. We apply it automatically when your income falls in that band — it phases out at 13c in the dollar between $66,000 and $70,000.
Is this educational only?
Yes. This is an educational calculator. It applies the IRD's published rates to the numbers you give it. For your specific circumstances — secondary income, irregular pay, lump sums, relocation expenses, or anything else unusual — talk to a qualified accountant or tax professional, or check directly with IRD.