PAYE / Income Tax Rates / ACC

PAYE

If your income is from salary, wages, benefits or taxable pensions, your tax will automatically be deducted under the PAYE (pay as you earn) system. This means when you get your weekly, fortnightly, or monthly pay, your tax has already been deducted from it.

PAYE is the tax your employer deducts from your salary and wages. It includes:

- the tax rate for your income, and
- an ACC earners' levy

Income tax rates for individuals


The rates in the table below apply from 1 April 2016 to 31 March 2017.

Taxable income

Income tax rates for every
  $1 of taxable income
  (excluding ACC earners' levy)

PAYE rates for every
  $1 of taxable income
  (including ACC earners' levy*)

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**

45 cents

46.39 cents

 

ACC earners' levy rates


All employees must pay an ACC earners' levy to cover the cost of non-work related injuries. It is collected by us on behalf of the Accident Compensation Corporation (ACC).

Employers deduct the earners' levy from wages. It is included as a component of PAYE deductions.


Earners' levy is charged at a flat rate each year: The Current Year 2012/13 ACC Levy Rate is $1.39 per $100 i.e. 1.39%

 

Income Tax Calculator

The IRD has some very good calculators to workout your tax on your taxable income. Click the link below and then Start.

http://www.ird.govt.nz/calculators/tool-name/tools-t/calculator-tax-rate.html