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 | |||||||||||||||||||||
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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:
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| Example 2 | ||||||||||||||||
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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:
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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%) |
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 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 $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.
Date published: 28 Mar 2013
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