New Zealand (NZ)

New Zealand is an English-speaking Pacific country known for high trust institutions, dramatic landscapes, outdoor life, and a pragmatic immigration system built around skills, family, study, and investment.

Capital: Wellington

Region: Oceania

Language: English

Currency: NZD (NZ$)

Cost of living: Expensive (index 75)

Emergency: 111

Tax & Payslip Guide

Understanding your taxes in New Zealand — tax year 1 April to 31 March.

📅

Tax Year

1 April to 31 March

⏰

Filing Deadline

Usually 7 July after tax year-end if filing an IR3 yourself; later dates may apply through a tax agent.

🧾

VAT (Standard)

15%

📊 Income Tax Brackets

Income from	Income to	Rate	Notes
0	15,600	10.5%	Resident individual tax rate from 1 April 2025.
15,601	53,500	17.5%	Second bracket.
53,501	78,100	30%	Middle bracket.
78,101	180,000	33%	Upper bracket.
180,001	∞	39%	Top bracket.

🏛️ Social Contributions

ACC Earners' Levy

Employee: 1.75% for 1 Apr 2026-31 Mar 2027

Payroll levy on liable earnings, capped annually, funding accident compensation.

KiwiSaver employee contribution

Employee: 3%, 4%, 6%, 8%, or 10% if enrolled

Employer: At least 3% for eligible employees

Voluntary retirement saving scheme with employer contributions for eligible workers.

🛒 VAT Rates

15%

Standard

Goods and Services Tax (GST). Businesses usually register once taxable supplies exceed NZ$60,000 in a 12-month period.

🧾 Sample Payslip Decoder

Gross Salary NZ$8,333/month

Gross salary + NZ$8,333

PAYE income tax (M tax code, approximate) - -NZ$1,956

ACC earners levy (1.60% of gross, 2026 rate) - -NZ$133

KiwiSaver employee 3% - -NZ$250

Net Salary (Take-home) NZ$5,994/month

Net: 8,333 − 1,956 − 133 − 250 = 5,994. Actual PAYE depends on tax code, pay cycle, KiwiSaver rate, secondary income codes, and student loan. Employer must also contribute KiwiSaver at minimum 3% (NZ$250/month) — this does not appear as a payslip deduction but is part of total employment cost. ACC earners levy is capped annually (NZ$139,384 liable earnings cap in 2026). Salary sacrificing to KiwiSaver at a higher rate (4%, 6%, 8%, 10%) further reduces net but increases retirement savings.

🌍 Special Expat Tax Rules

New tax residents may qualify for a four-year transitional resident exemption on most foreign passive income. Get advice before moving investment income or trusts.

📋 Double Tax Treaties

New Zealand has double tax agreements with many countries including Australia, UK, USA, Canada, Germany, China, Japan, and Singapore.

Inland Revenue

https://www.ird.govt.nz

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