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Calculate tax on holiday pay

Holiday pay is taxed as regular pay or a lump sum

The "Calculate tax on holiday pay" tool has been removed due to holiday pay being taxed as regular pay or a lump sum. Find out how to tax holiday pay in the steps below.

Make PAYE and other deductions as regular pay when holiday pay is paid:

  • instead of an employee's regular pay when they take annual leave
  • as part of an employee's regular pay at the rate of 8% of their gross earnings, or
  • to a non-resident seasonal worker who is using the NSW tax code.

Go to the PAYE / KiwiSaver deduction calculator to work out deductions on a regular pay

Make deductions as a lump sum (extra pay) when holiday pay is paid on top of an employee's regular pay. This includes when:

  • holiday pay is paid as a lump sum before the holiday is taken (holiday pay paid in advance), or
  • an employee gets their holiday pay paid as a lump sum at the end of their employment.

Find out how to tax lump sum payments

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