New Zealand Income Tax Calculator 2024-25

What are the New Zealand income tax brackets for 2024/25?

New Zealand's 2024/25 income tax (PAYE) brackets are: 10.5% on the first $14,000; 17.5% on $14,001–$48,000; 30% on $48,001–$70,000; 33% on $70,001–$180,000; and 39% on income above $180,000. The 39% top rate was introduced in 2021. Unlike Australia, New Zealand does not have a tax-free threshold — tax is paid from the first dollar earned, though Working for Families tax credits can provide income support for families with children.

What is the ACC earners' levy in New Zealand?

The ACC (Accident Compensation Corporation) earners' levy is a compulsory levy that funds compensation for work-related and non-work accidents for employees. For 2024/25, the rate is $1.60 per $100 of earnings (1.60%), applicable on income up to the maximum of $142,283. It is collected automatically through the PAYE system alongside income tax. Self-employed people pay ACC levies separately on their liable earnings — at a different rate — and may also pay a work levy based on their industry.

How does New Zealand's tax compare to Australia's?

New Zealand's tax system is simpler than Australia's in several ways: there is no capital gains tax (with limited exceptions under the bright-line test), no inheritance tax, and no Medicare-style levy. However, NZ has no tax-free threshold, so tax applies from the first dollar. Top marginal rates are broadly similar: NZ hits 33% at $70,000 compared to Australia's 37% at $120,000, meaning middle-income earners face a slightly higher marginal rate in NZ. Australia's combination of income tax, Medicare levy, and super contributions makes direct comparisons complex.

What are Working for Families tax credits?

Working for Families is a package of tax credits for families with dependent children in New Zealand. The main component is the Family Tax Credit, which provides a weekly payment based on the number and ages of children. Other components include the In-Work Tax Credit (for families where at least one parent works minimum hours) and the Minimum Family Tax Credit. These credits are means-tested and phase out at higher incomes. They are administered by IRD and can be paid weekly, fortnightly, or as a lump sum at tax time.