New Zealand Income Tax Rates 2024

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 incomeTax rate
Up to $14,00010.5%
Over $14,000 and up to $48,00017.5%
Over $48,000 and up to $70,00030%
Over $70,000 and up to $180,00033%
Remaining income over $180,00039%

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.

FAQs

Estimated annual total income from all sourcesSecondary tax code for the second source of incomeSecondary tax rate (before ACC levies)
$14,000 or lessSB10.5%
Between $14,001 and $48,000S17.5%
Between $48,001 and $70,000SH30%
Between $70,001 and $180,000ST33%
Over $180,000SA39%

As per latest figures, the average income salary in New Zealand per month is 8,200 NZD or 97,300 NZD per year. As per 2023, the gross minimum salary in New Zealand is 21.20 NZD per hour. Salaries range in New Zealand is  from 24,600 NZD to 434,000 NZD per year and include transport, and other benefits.

Your tax bill is calculated in your income profit. To reduce your tax you’ll need to apply claiming as many valid business expenses as you can. You’ll need to keep good records, e.g. receipts, and hold onto them for seven years — Inland Revenue will need to see these records if you’re audited.

The Government has announced its Budget for 2023, which included three Revenue measures:

  • Trustee tax is increased 33% to 39% to align with the top personal tax rate for the 2024-25 and later income years from 2024,1 April for most trusts.
  • From 1st July 2024, Govt. will make three percent KiwiSaver contribution to recipients of Paid Parental Leave who make 3% contributions.
  • This budget also affects revenue from imposing a tax on some large multinational enterprises operating in NZ.
Henry Thomas

I am Henry. My passion lies in creating high-performing teams, optimizing business processes and leading the strategic direction of the business. My expertise includes helping small businesses with a range of accounting services, tax preparation, business advisory, accounting and bookkeeping, and personal tax planning, as well as company, trust and partnership tax returns and more.