From gross to take-home
Your gross salary is never what you take home. PAYE income tax applies on a sliding scale from 10.5% to 39% — and unlike many countries, there's no tax-free threshold. The ACC earners' levy (1.75%, capped at $156,641 of earnings) is collected alongside it.
Most employees also contribute to KiwiSaver (default 3.5%), which comes out of your pay but builds your retirement savings — and your employer adds a matching 3.5%.
Good to know
This excludes student loan repayments and the independent earner tax credit, which can shift your net pay a little.
Common questions
PAYE income tax, the ACC earners’ levy (1.75%, capped) and your KiwiSaver contribution. The result is what actually lands in your account.
No. New Zealand taxes income from the first dollar — there is no tax-free allowance like in some other countries.
No. Student loan repayments (12% above the threshold) and the independent earner tax credit would change your net pay slightly.