New Zealand uses progressive income tax rates, so how much tax you pay depends on your total annual taxable income and each slice of it is taxed at a different rate.
Current NZ tax rates
For the tax year starting 1 April 2025, the personal income tax brackets are:
- 10.5% on income from $0 to $15,600
- 17.5% on income from $15,601 to $53,500
- 30% on income from $53,501 to $78,100
- 33% on income from $78,101 to $180,000
- 39% on income over $180,000
There is no tax‑free threshold in New Zealand, and PAYE on wages usually also includes an ACC earners’ levy on top of the income tax.
How to estimate your tax
To work out your yearly income tax, you:
- Split your annual taxable income into the brackets above.
- Apply the rate for each bracket and add the amounts together.
For example, if you earn $55,000 in the 2025–26 year, roughly: the first $15,600 is taxed at 10.5%, the next $37,900 (up to $53,500) at 17.5%, and the last $1,500 at 30%, giving total income tax of about $8,700 before ACC.
What you can do next
Because you have not said how much you earn or your situation (salary vs self‑employed, any deductions, or tax code), the exact figure cannot be calculated here. You can get a precise number by using Inland Revenue’s “Work out tax on your yearly income” calculator or a trusted NZ PAYE calculator and entering your annual income and tax code.
