Find out about: Tax rates and codes
Income tax rates for individuals
| Taxable income | PAYE rate for every $1 of taxable income (excluding ACC earners' levy) |
PAYE rate for every $1 of taxable income (including ACC earners' levy*) |
|---|---|---|
| up to $14,000 | 12.5 cents | 14.2 cents |
| $14,001 to $48,000 inclusive | 21 cents | 22.7 cents |
| $48,001 to $70,000 | 33 cents | 34.7 cents |
| $70,001 and over | 38 cents | 39.7 cents |
| No notification** | 45 cents | 46.7 cents |
| Use the Tax on annual income calculator if you want to know the tax rates for previous years. | ||
| * The earners' levy rate for the tax year 1 April 2009 to 31 March 2010 is 1.7% ($1.70 per $100) | ||
| ** 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. The form must also be signed. | ||
Example 1
John's total taxable income for the year was $65,238. Here is how to work out the amount of tax due on the income:
| $0 to $14,000 |
|
|
|
$1,750.00 |
| $14,001 to $48,000 |
|
|
|
$7,140.00 |
| $48,001 to $65,238 |
|
|
|
$5,688.54 |
| $14,578.54 | ||||
Therefore the tax due on John's income of $65,238 was $14,578.54.
Example 2
Sarah's total taxable income for the year was $45,000. Here is how to work out the amount of tax due on the income:
| $0 to $14,000 |
|
|
|
$1,750.00 |
| $14,001 to $45,000 |
|
|
|
$6,510.00 |
| $8,260.00 | ||||
Therefore the tax due on Sarah's income of $45,000 was $8,260.00.
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 2009 to 31 March 2010 | $1.70 per $100 (1.7%) |
| 1 April 2008 to 31 March 2009 | $1.40 per $100 (1.4%) |
| 1 April 2007 to 31 March 2008 | $1.30 per $100 (1.3%) |
| 1 April 2006 to 31 March 2007 | $1.30 per $100 (1.3%) |
| 1 April 2005 to 31 March 2006 | $1.20 per $100 (1.2%) |
| 1 April 2004 to 31 March 2005 | $1.20 per $100 (1.2%) |
| 1 April 2003 to 31 March 2004 | $1.20 per $100 (1.2%) |
| 1 April 2002 to 31 March 2003 | $1.20 per $100 (1.2%) |
| 1 April 2001 to 31 March 2002 | $1.10 per $100 (1.1%) |
| 1 April 2000 to 31 March 2001 | $1.30 per $100 (1.3%) |
Earners' levy is deducted on earnings up to an annually prescribed maximum:
| Year | Maximum earnings |
Levy |
|---|---|---|
| 1 April 2009 to 31 March 2010 | $106,473 | $1,810.04 |
| 1 April 2008 to 31 March 2009 | $102,922 | $1,440.91 |
| 1 April 2007 to 31 March 2008 | $99,817 | $1,297.62 |
| 1 April 2006 to 31 March 2007 | $96,619 | $1,256.04 |
| 1 April 2005 to 31 March 2006 | $94,226 | $1,130.71 |
| 1 April 2004 to 31 March 2005 | $92,189 | $1,106.26 |
| 1 April 2003 to 31 March 2004 | $88,728 | $1,064.73 |
| 1 April 2002 to 31 March 2003 | $87,185 | $1,046.22 |
| 1 April 2001 to 31 March 2002 | $85,795 | $943.74 |
| 1 April 2000 to 31 March 2001 | $84,636 | $1100.26 |
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: 24 Mar 2009
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