Find out about: Tax rates and codes

Income tax rates for individuals

The rates in the table below apply from 1 April 2011 to 31 March 2012.

Taxable income	Income tax rates for every $1 of taxable income (excluding ACC earners' levy)	PAYE rates for every $1 of taxable income (including ACC earners' levy*)
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**	45 cents	47.04 cents
Use the Tax on annual income calculator if you want to know the tax rates for previous years.
* The earners' levy rate (including GST) for the period 1 April 2011 to 31 March 2012 is 2.04% ($2.04 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	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
				$12,591.40

Therefore the tax due on John's income of $65,238 was $12,591.40.

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	at	10.5%	=	$1,470.00
$14,001 to $45,000	at	17.5%	=	$5,425.00
				$6,895.00

Therefore the tax due on Sarah's income of $45,000 was $6,895.00.

Rates for the previous 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.

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
Note: All rates are ACC-exclusive. Please see the ACC earner's levy rates table below for the rates that apply.

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 2011 to 31 March 2012	$2.04 per $100 (2.04%)
1 October 2010 to 31 March 2011	$2.04 per $100 (2.04%)
1 April 2010 to 30 September 2010	$2.00 per $100 (2.0%)
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 - see Note below	Maximum levy payable
1 April 2011 to 31 March 2012	$111,669	$2,278.04
1 October 2010 to 31 March 2011	$110,018	$2,244.36
1 April 2010 to 30 September 2010	$110,018	$2,200.36
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

Note
For self-employed earnings, earners' levy is deducted on earnings up to an annually prescribed maximum of $110,018. The maximum levy payable is $2,244.36 for the 2011-12 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: 30 Mar 2011

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