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## Find out about

### Tax rates and codes

Work out your tax code

# Income tax rates for individuals and ACC earners' levy rates

### Income tax rates for tax year 2014-2015

Taxable income Income tax rates for every
\$1 of taxable income
(excl ACC earners' levy)
PAYE rates for every
\$1 of taxable income
(incl ACC earners' levy - see "Note 1" below)
up to \$14,000 10.5 cents 11.95 cents
from \$14,001 to \$48,000 17.5 cents 18.95 cents
from \$48,001 to \$70,000 30 cents 31.45 cents
\$70,001 and over 33 cents 34.45 cents
No-notification - see "Note 2 below" 45 cents 46.45 cents

See previous year's income tax rates and ACC earners' levy rates

Note 1 Earners' levy rate (GST-inclusive) for period 1 April 2014 to 31 March 2015 is 1.45% (\$1.45 per \$100).

Note 2 Employers are legally required to use the no-notification rate when an employee does not fully complete the Tax code declaration (IR330). A completed form must include name, IRD number and tax code, and be signed.

Example 1

John's total taxable income for the year was \$65,238. Here's how to work out the amount of tax due on the income:

 \$0 to \$14,000 at 10.5% = \$1,470.00 \$14,001 to \$48,000 at 17.5% = \$5,950.00 \$48,001 to \$65,238 at 30% = \$5,171.40 Total tax due \$12,591.40

Example 2

Sarah's total taxable income for the year was \$45,000. Here's how to work out the amount of tax due on the income:

 \$0 to \$14,000 at 10.5% = \$1,470.00 \$14,001 to \$45,000 at 17.5% = \$5,425.00 Total tax due \$6,895.00

### ACC earners' levy rates

All employees must pay an ACC earners' levy to cover the cost of non-work related injuries. It is collected by us on behalf of the Accident Compensation Corporation (ACC).

Employers deduct the earners' levy from wages. It is included as a component of PAYE deductions.

Earners' levy is charged at a flat rate each year:

Year Levy rate
1 April 2014 to 31 March 2015 \$1.45 per \$100 (1.45%)
1 April 2013 to 31 March 2014 \$1.70 per \$100 (1.70%)
1 April 2012 to 31 March 2013 \$1.70 per \$100 (1.70%)
1 April 2011 to 31 March 2012 \$2.04 per \$100 (2.04%)

See previous year's income tax rates and ACC earners' levy rates

Earners' levy is deducted on earnings up to an annually prescribed maximum:

Year Maximum
earnings - see "Note 3" below
Maximum
levy payable
1 April 2014 to 31 March 2015 \$118,191 \$1,713.76
1 April 2013 to 31 March 2014 \$116,089 \$1,973.51
1 April 2012 to 31 March 2013 \$113,768 \$1,934.05
1 April 2011 to 31 March 2012 \$111,669 \$2,278.04

See previous year's income tax rates and ACC earners' levy rates

Note 3 For self-employed earnings, earners' levy is deducted on earnings up to an annually prescribed maximum of \$118,191. The maximum levy payable is \$1,713.76 for the 2014-15 tax year.

#### Income liable for earners' levy

Almost all earnings subject to PAYE are liable for earners' levy. They include:

• wages and salaries
• back pay and holiday pay
• overtime pay
• long-service pay
• bonuses or gratuities
• taxable allowances
• shareholder-employee salaries from which PAYE is deducted
• salaries to partners in a partnership.

Date published: 02 Sep 2015

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