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Find out about: Tax rates and codes

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 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 the previous year's ACC earners' levy rates

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

Year Maximum
earnings - see "Note 4" 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 the previous year's ACC earners' levy deducted on earnings rates

Note 4  
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: 31 Mar 2014

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