If you get paid a salary or wages your employer will deduct tax and the ACC earners’ levy before they pay you. These deductions are known as PAYE (pay as you earn).
Some salary or wage earners - IR56 taxpayers - are responsible for paying their own PAYE directly to us.
How much PAYE you pay
The amount of income tax you pay depends on the:
- tax code you gave your employer when you started working for them
- tax rates for your total income in the tax year.
The ACC earners' levy is a flat rate and may change each year. You can find the current rate and more information about ACC levies on the ACC website.
Other deductions from salary or wages
You can ask your employer to deduct other money from your earnings before they pay you. These deductions could include:
- student loan repayments
- your contribution to your KiwiSaver account (your employer may also contribute)
- your contribution to other retirement savings schemes
- child support payments
- donations to charities and similar organisations, known as payroll giving.
Work out your deductions
Use our calculator to see how much PAYE, KiwiSaver and student loan repayments will be deducted from your salary or wages.