## Income tax rates for individuals

### Income tax rates

#### Rates for tax year 2012-2013

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 12.20 cents
from \$14,001 to \$48,000 17.5 cents 19.20 cents
from \$48,001 to \$70,000 30 cents 31.70 cents
\$70,001 and over 33 cents 34.70 cents
No-notification - see "Note 2 below" 45 cents 46.70 cents

Use the Tax on annual income calculator if you want to know the tax rates for previous years.

 Note 1 Earners' levy rate (GST-inclusive) for period 1 April 2012 to 31 March 2013 is 1.70% (\$1.70 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

#### Rates for tax year 2011-2012

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 3" below)
up to \$14,000
10.5 cents
12.54 cents
from \$14,001 to \$48,000
17.5 cents
19.54 cents
from \$48,001 to \$70,000
30 cents
32.04 cents
\$70,001 and over
33 cents
35.04 cents
No-notification - see "Note 2" above
45 cents
47.04 cents

 Note 3 Earners' levy rate (GST-inclusive) for period 1 April 2011 to 31 March 2012 is 2.04% (\$2.04 per \$100).

Use the Tax on annual income calculator if you want to know the tax rates for previous years.

#### Rates for tax year 2010-2011

The following annual rates will be used when we work out your tax at the end of the tax year, if you receive a personal tax summary or file an IR3 tax return. These rates represent an average of the two sets of rates that apply for the 2010-11 income year. Note: All rates are ACC-exclusive. Please see the ACC earner's levy rates table below for the rates that apply.

Taxable income PAYE rate up to
30 September 2010
Income tax rate from
1 April 2010 to
31 March 2011
PAYE rate to apply
from 1 October 2010
up to \$14,000 12.5 cents 11.5 cents 10.5 cents
from \$14,001 to \$48,000 21 cents 19.25 cents 17.5 cents
from \$48,001 to \$70,000 33 cents 31.5 cents 30 cents
\$70,001 and over 38 cents 35.5 cents 33 cents

### 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 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%)

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

Year Maximum
earnings - see "Note 4" below
Maximum
levy payable
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
 Note 4 For self-employed earnings, earners' levy is deducted on earnings up to an annually prescribed maximum of \$113,768 The maximum levy payable is \$1,934.05 for the 2013-14 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.

##### Other pages in: Tax rates and codes

Date published: 28 Mar 2013