Tax rates

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How much income tax do you pay?

How much tax you pay depends on your income.

Getting income from salary or wages

Find out if you need a tax code before going any further.

If you need a tax code but don't complete a Tax code declaration (IR330), your employer will take out PAYE (pay as you earn tax) using the no-notification rate (previously no-declaration rate) of 45 cents in the dollar (plus ACC earners' levy for employees see Note 1 below).

If you have a tax code, the current rates are:

Taxable incomeIncome tax rates for every
$1 of taxable income
(excl ACC earners' levy)
PAYE rates for every
$1 of taxable income
(incl ACC earners' levy - see Note 1 below)
up to $14,000 10.5 cents 11.89 cents
from $14,001 to $48,000 17.5 cents 18.89 cents
from $48,001 to $70,000 30 cents 31.39 cents
$70,001 and over 33 cents 34.39 cents
No-notification - see Note 2 below 45 cents 46.39 cents

See the tax rates for previous years (external link)

Note 1
If you're on salary or wages, your employer will take out an extra percentage (for every $100 you earn) from your pay for the ACC earners' levy (external link) . See the ACC website (external link) .

Earners' levy rate (GST-inclusive) for period 1 April 2016 to 31 March 2017 is 1.39% ($1.39 per $100).

Note 2
Employers are legally required to use the no-notification rate when an employee does not fully complete the Tax code declaration (IR330). A completed form must include name, IRD number and tax code, and be signed.

Use our PAYE calculator to work out your tax. (external link)

Tax credit

If you earn less than $2,340 or between $24,000 and $48,000, in a tax year you may be entitled to claim tax credits (formerly rebates) which will lower the amount of tax to pay.

Getting income from schedular payments

If you're receiving schedular payments as a contractor you'll need to complete a Tax rate notification for contractors (IR330C) and either use the standard tax rate for the type of activity you're doing (shown on page 3 of the IR330C) or you can choose your own tax rate as long as it's not under 10%.

If you don't complete the IR330C, your payer will take out tax at the no-notification rate of 45%. A completed IR330C form must include your name, IRD number and be signed.

You'll find more information around the IR330C and schedular payments on our website (external link)