When did these brackets take effect?

The current five-bracket schedule (10.5% / 17.5% / 30% / 33% / 39%) took effect on 31 July 2024, when the bottom three thresholds were lifted. Before that, the 17.5% bracket started at $14,000 (now $15,600), the 30% bracket at $48,000 (now $53,500), and the 33% bracket at $70,000 (now $78,100). The 39% top rate at $180,000 was unchanged. Source: IRD.

What’s the effective rate at $80k vs $200k?

On $80,000 of income tax (excluding ACC and KiwiSaver), total tax is $17,320, an effective rate of 21.65%. On $200,000 total tax is $54,520, an effective rate of 27.26%. The marginal rate is what applies to the next dollar earned (30% at $80k, 39% at $200k); the effective rate is total tax divided by total income.

Do I add ACC and KiwiSaver to these?

Yes for PAYE-equivalent take-home calculations. The ACC earners’ levy is 1.67% on earnings up to the annual maximum (FY2026 cap $152,790) and is shown separately on payslips, not folded into the income-tax brackets. KiwiSaver employee contributions (3% / 4% / 6% / 8% / 10%) are deducted from your gross before take-home, and your employer adds at least 3% on top. Neither is part of the IRD tax-bracket figures.

Are PIE, RWT and NRWT rates the same as these?

No. PIE (Portfolio Investment Entity) rates cap at 28% rather than 39%, with PIR options of 10.5% / 17.5% / 28% based on your income. RWT on interest aligns with your marginal rate (10.5% / 17.5% / 30% / 33% / 39%) and is set via tax-code election. NRWT on payments to non-residents has separate treaty-based rates. The brackets on this page apply to your personal salary, business, and rental income only.

Income tax Published 2026-06-06 · 7 min read

NZ income tax rates 2026 — brackets and effective rates

The five personal income-tax brackets currently in force, what the 31 July 2024 threshold change means in dollar terms, and worked examples of total tax on $80,000 and $200,000 of income. Sourced from IRD.

In one paragraph

NZ personal income tax uses five brackets: 10.5% up to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000, and 39% above $180,000. The bottom three thresholds were lifted on 31 July 2024; the 39% top rate at $180,000 has been in place since 1 April 2021. The ACC earners’ levy of 1.67% is charged separately on top, capped at the annual maximum earnings. Source: IRD — tax rates for individuals.

The five current brackets

The schedule below applies to taxable income for the 2026 income year (1 April 2025 – 31 March 2026) and onwards. Source: IRD — tax rates for individuals.

Taxable income band	Marginal rate	Tax on the band
$0 – $15,600	10.5%	Up to $1,638
$15,601 – $53,500	17.5%	Up to $6,632.50
$53,501 – $78,100	30%	Up to $7,380
$78,101 – $180,000	33%	Up to $33,627
$180,001 +	39%	39¢ per $1 above

The 31 July 2024 threshold change in context

The bracket structure (number of bands and the marginal rates) was unchanged at 31 July 2024 — only the thresholds shifted. The 17.5% bracket’s lower edge moved from $14,000 to $15,600, the 30% edge from $48,000 to $53,500, and the 33% edge from $70,000 to $78,100. The 39% top rate at $180,000 (introduced 1 April 2021) was untouched. Most PAYE earners saw a modest weekly take-home increase. Source: IRD — tax rates for individuals.

The thresholds had been static from 2010 until 2024 — a 14-year freeze that produced steady bracket creep as wages grew. The 2024 lift partially compensated for that, but did not index brackets to inflation, so creep resumes from here.

ACC earners’ levy — charged separately

The ACC earners’ levy is 1.67% of earnings up to the annual maximum (capped at the prescribed maximum liable earnings each year). It funds the Earners’ Account for non-work injuries and is deducted via PAYE alongside income tax, but is not part of the income-tax brackets above — it is a separate line on the payslip and on IRD’s rate tables.

Worked example — tax on $80,000

On $80,000 of taxable income (excluding ACC, excluding KiwiSaver):

10.5% on the first $15,600 = $1,638.00
17.5% on the next $37,900 ($15,601 – $53,500) = $6,632.50
30% on the next $24,600 ($53,501 – $78,100) = $7,380.00
33% on the next $1,900 ($78,101 – $80,000) = $627.00

Total income tax: $16,277.50 — an effective rate of 20.35%. Marginal rate on the next dollar: 33%.

Worked example — tax on $200,000

On $200,000 of taxable income:

10.5% on $15,600 = $1,638.00
17.5% on $37,900 = $6,632.50
30% on $24,600 = $7,380.00
33% on $101,900 ($78,101 – $180,000) = $33,627.00
39% on $20,000 ($180,001 – $200,000) = $7,800.00

Total income tax: $57,077.50 — an effective rate of 28.54%. Marginal rate on the next dollar: 39%.

Related on TaxAccountants.co.nz

NZ income tax calculator — plug in your figure and see the breakdown.
NZ GST rate — 15% since 1 October 2010.
Student loan repayment threshold — $24,128 for 2026.
Provisional tax 2026 — when bracket-driven RIT triggers instalments.

Need a hand with your IR3 or company return?

Brackets, ACC, KiwiSaver, RWT and PIE all interact differently for salary, contracting and rental income. We refer every quote request to Lynch & Associates, our Auckland partner firm of CAANZ-member accountants and IRD-registered tax agents, who will reply within one business day.

Get a quote — free for users

Sources

Editorial note: Tax brackets can change at Budget time. Verified 2026-06-06; we refresh this page quarterly against the IRD pages above.

Disclosure: TaxAccountants.co.nz is an introduction service. Quote requests are referred to Lynch & Associates Chartered Accountants.