NZ PAYE calculator — 2026 income year (1 Apr 2025 – 31 Mar 2026)
Work out your weekly, fortnightly or monthly take-home pay with the current PAYE brackets, ACC earners' levy, student loan repayment and KiwiSaver.
Rates verified 2026-06-06. Source: IRD tax rates.
Your fortnight take-home
How NZ PAYE works
PAYE (Pay As You Earn) is the system NZ employers use to deduct income tax, ACC earners' levy, student loan repayments and KiwiSaver contributions from each pay before it reaches your account. The employer pays the deductions to IRD via payday filing — usually within two working days of each payday.
Your tax code controls how much PAYE is deducted. The most common codes are M for a primary income with no student loan and M SL with a student loan. Secondary codes (S, SH, ST, SB) apply a flat rate to a second income source so it isn't double-counted at the lower end of the primary scale.
Tax codes at a glance
| Code | When to use | Rate behaviour |
|---|---|---|
| M | Primary job, no student loan | Progressive 10.5–39% |
| M SL | Primary job, with student loan | Progressive + 12% over $24,128 |
| ME / ME SL | Primary, eligible for Independent Earner Tax Credit | Progressive, IETC adjustment baked in |
| SB | Secondary, annual income up to $15,600 | Flat 10.5% |
| S | Secondary, annual income $15,601 – $53,500 | Flat 17.5% |
| SH | Secondary, annual income $53,501 – $78,100 | Flat 30% |
| ST | Secondary, annual income $78,101 – $180,000 | Flat 33% |
| S SL | Secondary, with student loan | Flat rate + 12% over $24,128 |
Source: IRD — work out your tax code. Verified 2026-06-06.
Frequently asked questions
What tax code do I use?
For most employees this is M (primary income, no student loan) or M SL (primary, with student loan). ME applies if you qualify for the Independent Earner Tax Credit. Secondary codes S, SH, ST, SB apply when you have more than one job and the second one needs to use a different rate. See IRD's "work out your tax code" page if unsure.
Why is my PAYE different from what I expected?
PAYE is an estimate of your annual tax divided by pay periods. If your pay varies, you can over- or under-withhold and square up at year-end. Bonuses, redundancy, schedular payments and lump sums all have their own withholding rules that this calculator does not handle.
Does this include ESCT on KiwiSaver?
No. The KiwiSaver figure shown is your employee contribution. Your employer pays a minimum 3% employer contribution on top, taxed at the Employer Superannuation Contribution Tax (ESCT) rate, which depends on your salary. ESCT is deducted from the employer's contribution before it lands in your fund.
How is ACC earners' levy calculated?
ACC earners' levy applies to your liable earnings at the rate set annually by Order in Council (1.67% for 1 Apr 2025 – 31 Mar 2026). It is collected by IRD via PAYE and remitted to ACC. There is a cap on liable earnings; very high earners stop paying levy above the cap.
Related
- NZ income tax calculator — annual take-home estimate.
- Student loan repayment calculator — focused on the 12% over threshold.
- NZ tax deadlines 2026 — when employer PAYE is due to IRD.
PAYE not matching your tax assessment?
If your end-of-year IRD assessment is consistently higher or lower than your PAYE deductions, the tax code, secondary income setup or KiwiSaver/ESCT may need review. We refer every quote request to Lynch & Associates, our Auckland Chartered Accountants partner firm, who will reply within one business day.
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