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Find out about: Tax rates and codes

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 $116,089. The maximum levy payable is $1,683.29 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: 09 Jul 2014

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