Income tax rate is the percentage of the tax that you must pay. The rates are based on your total income in your tax year. Includes:
- Wages or Salary.
- Work and Income benefit.
- Scheduler payments.
- Interest from a bank account or investment.
- Earnings from self-employment.
- Money from renting out property.
- Overseas income.
Some income tax may be deducted from your income before you get paid. This includes wages, salary, and income benefits. The payer deducts your tax according to your tax code and provides you your tax information.
To Calculate your GST, Please visit our New Zealand GST Calculator
You might get back your tax or have to pay at the end of your tax year if you’ve been taxed at the wrong rate during the year.
Other income is not taxes before you get paid. This includes renting out property, and overseas incomes. You pay tax on these after the end of the tax year. The income tax rate depends on the income you earn from these.
Income Tax Rates
New Zealand has progressive tax rates. The rates increase as your income increases.
2023 PAYE Income Tax Rate Brackets
|For each dollar of income||Tax rate|
|Up to $14,000||10.5%|
|Over $14,000 and up to $48,000||17.5%|
|Over $48,000 and up to $70,000||30%|
|Over $70,000 and up to $180,000||33%|
|Remaining income over $180,000||39%|
Tailored Tax Rates for salary, wages and pensions
You can tailored tax rate on your income:
- Salary or wages.
- New Zealand Superannuation.
- Veteran’s Pension.
Also, read about: Taxes in New Zealand
How to apply a Tailored tax code?
To apply for a tailored code visit IRD (inland revenue department) online portal. IRD will reply to you within 10 working days. Please note that applications made during February and March may take longer than 10 working days.
You need to tell your payer name what your tailored tax code is. Do this by showing them your certificate. You need to reapply for your tailored tax code every tax year you want. IRD will contact you through myIR when you want to reapply.
Schedular payment tax rates
You can choose your tax rate for income from your scheduler payments.
- Standard rate for the type of activity.
- Choose your own tax rate.
- Apply for a special tax rate.