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What are income tax rates?

Income tax rates are the percentages of tax that you must pay.

The rates are based on your total income for the tax year. Your income could include:

  • salary or wages
  • a Work and Income benefit
  • schedular payments
  • interest from a bank account or investment
  • earnings from self-employment
  • money from renting out property
  • overseas income.

Some income is taxed before you get paid. This includes salaries, wages, Work and Income benefits, schedular payments and interest. The amount of tax your employer or payer deducts depends on the tax code and income information you gave them.

You might get a refund or have tax to pay at the end of the tax year if you've been taxed at the wrong rate during the year. It's important to use the correct tax code.

Other income is not taxed before you get paid. This includes income from self-employment or renting out property, and some overseas income. You pay tax on this income at the end of the tax year. The amount of tax you pay depends on your total income for the tax year.

Which tax rate applies to me?

New Zealand has progressive or gradual tax rates. The rates increase as your income increases.

Income tax rates

For each dollar of income Tax rate
Up to $14,000 10.5%
Over $14,000 and up to $48,000 17.5%
Over $48,000 and up to $70,000 30%
Remaining income over $70,000 33%
Tax on annual income calculator

This calculator will work out income tax rates from 2011 to 2021

Go to this tool

Secondary tax rates

If you have more than one source of income, you pay secondary tax. This helps you pay the right amount of tax so you do not get a bill at the end of the year.

The amount of secondary tax you pay depends on the secondary tax code you give your employer or payer.

Secondary tax code Secondary tax rate
SB 10.5%
S 17.5%
SH 30%
ST 33%

Tailored tax rates for salary, wages and pensions

You can get a tailored tax rate for income you get from:

  • salary or wages
  • New Zealand Superannuation
  • Veteran’s Pension.

You need to apply for a tailored tax code first. If we approve your application we'll let you know what your tailored tax rate is.

Schedular payment tax rates

You can choose your tax rate for income from schedular payments. You have 3 choices:

  • choose the standard rate for the type of activity you do
  • choose your own tax rate
  • apply for a special tax rate.