| Income ($) |
Tax Rate |
| 0 - 14,000 |
10.5% |
| 14,001 - 48,000 |
17.5% |
| 48,001 - 70,000 |
30% |
| Over 70,000 |
33% |
| No Notification Rate |
45% |
Rates are for the tax year 1 April 2015 to 31 March 2016, and are based on tax code M (primary income without student loan) and excludes the ACC earners' levy. The earners' levy rate (including GST) for the period 1 April 2015 to 31 March 2016 is 1.45% ($1.45 per $100).
In New Zealand, the income is taxed by the amount
that falls within each tax bracket. For example, persons
who earn $70,000 will pay only 30% on the amount that
falls between $48,001 and $70,000 rather than paying on
the full $70,000. Consequently, the corresponding income
tax for that specific income will accumulate to $14,020
- which comes to an overall effective tax rate of 20.02%
of the entire amount.
Tax credits
The amount of tax actually payable can be reduced by
claiming tax credits, e.g. for donations, childcare and
housekeeper, independent earners, payroll donations,
income under $9,880, and children.
Tax credits on income under $9,880 and for children were
removed effective from 1 April 2013.
Tax deducted at source
In most cases employers deduct the relevant amount of
income tax from salary and wages prior to these being
paid to the individual. This system, known as
pay-as-you-earn, or PAYE, was introduced in 1958, prior
to which employees paid tax annually.
In addition, banks and other financial institutions
deduct the relevant amount of income tax on interest and
dividends as these are earned. This is known as resident
withholding tax.[10]
At the end of each tax year, individuals who may not
have paid the correct amount of income tax are required
to submit a personal tax summary, to allow the IRD to
calculate any under or overpayment of tax made during
the year.
Social security and health: covered by general tax, though many people have private health insurance.
ACC (New Zealand?s unique accident compensation scheme): earners pay 1.45% up to a maximum of $118,191 in earnings.
Motorists pay a levy with their annual car registration. Employers pay insurance cover based on industry risk.
Corporate Income Tax Rate in New Zealand is 28%
Goods and services tax (GST) of 15% on most things.
Excise tax paid on petrol, tobacco, alcohol.
Capital gains generally not on New Zealand investments but applies to foreign debt and equity investments.
Lowest Individual Tax Rate is 10.5% and Highest Rate is 33%
| Income ($) |
Tax Rate |
| 0 - 14,000 |
10.5% |
| 14,001 - 48,000 |
17.5% |
| 48,001 - 70,000 |
30% |
| Over 70,000 |
33% |
| No Notification Rate |
45% |
Note 1 - Earners' levy rate (GST-inclusive) for
period 1 April 2014 to 31 March 2015 is 1.45% ($1.45 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.
CC 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%)
Earners' levy is deducted on earnings up to an annually prescribed maximum:
Year Minimum Maximum
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
Note - 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
New Zealand - 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.