Income Tax Calculator FY 2025-26 — New vs Old Regime (India)

By the Taxestool Editorial Team Last reviewed Editorial standards

Estimate your annual NZ income tax for FY 2025-26. Five brackets from 10.5% to 39% with no tax-free threshold. Plus ACC Earner's Levy (1.67% capped at $152,790), Independent Earner Tax Credit (up to $520 for $24-70k earners), and student loan if applicable.

$

Total annual tax

$0

After-tax

$0

Effective rate

0%

Marginal rate

0%

Taxable income$0
Income tax (gross)−$0
Independent Earner Tax Credit (IETC)+$0
ACC Earner's Levy−$0
Student loan repayment−$0
After-tax income$0

NZ income tax (FY 2025-26)

New Zealand has a national income tax with five brackets and no tax-free threshold — tax starts from the first dollar earned. Budget 2024 raised the bottom two bracket thresholds, with full new thresholds applying from FY 2025-26.

Taxable incomeRate
$0 – $15,60010.5%
$15,601 – $53,50017.5%
$53,501 – $78,10030%
$78,101 – $180,00033%
$180,001+39%

Earners between $24,000 and $70,000 may also claim the Independent Earner Tax Credit (IETC) — up to $520/year ($10/week) — provided they don't receive Working for Families or a main benefit. The full $520 applies between $24k and $66k; it tapers 13c per $1 from $66k → $0 at $70k.

ACC Earner's Levy

All employees pay the ACC Earner's Levy to fund New Zealand's national accident-compensation scheme. FY 2025-26 rate: 1.67% on liable earnings, capped at $152,790/year. Collected automatically via PAYE alongside income tax.

KiwiSaver

KiwiSaver is NZ's opt-in retirement savings scheme. You pick a contribution rate of 3%, 4%, 6%, 8%, or 10% of your gross pay. Your employer must contribute a minimum of 3% on top of your salary in most contracts (some employment agreements bundle it into a total-remuneration package — check yours).

The government also tops up your KiwiSaver with up to $521.43/year (50c per $1 you contribute, up to the cap), provided you're eligible and contribute at least $1,042.86 per year.

Student loan repayments

If you have a NZ student loan, compulsory repayments are deducted via PAYE at 12% of every dollar above $24,128/year ($464/week). The rate is flat — no marginal bands. Repayments are applied automatically when your employer uses the SL tax code.

GST

15% nationwide on most goods and services. Raised from 12.5% on 1 October 2010; stable since.

Sources

Calculator is provided for estimation only and does not constitute tax advice. Consult an accountant or IRD for filing.

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Frequently Asked Questions

What are the FY 2025-26 brackets?
10.5% to $15,600 → 17.5% to $53,500 → 30% to $78,100 → 33% to $180,000 → 39% above $180,000. The Budget 2024 changes (raising the lower thresholds) apply for the full FY 2025-26 year — Budget 2025 made no further changes.
Does NZ have a tax-free threshold?
No — NZ taxes from the first dollar of income at 10.5%. This is structurally different from Australia ($18,200 threshold), the UK (£12,570), and Canada (federal BPA credit shielding ~$16,550). NZ relies on the IETC and Working for Families to offset the impact on low-income earners.
What is the IETC?
The Independent Earner Tax Credit — up to $520/year for earners aged 18+ with annual income between $24,000 and $70,000 who don't receive Working for Families tax credits or a main government benefit. Full $520 between $24k and $66k; tapers 13c per $1 from $66k → $0 at $70k.
Is ACC really a tax?
Technically it's a levy, not a tax — it funds the no-fault Accident Compensation Corporation scheme rather than general government revenue. Functionally on your paycheck it works like a tax: deducted via PAYE, mandatory, no opt-out. At 1.67% (FY 2025-26) on up to $152,790 of earnings, it's a meaningful chunk of total deductions.
When is my NZ tax return due?
Most salary/wage earners don't file a return — IRD does an automatic year-end calculation in May-July following the tax year. If you owe additional tax (or are due a refund beyond what IRD auto-detects), file by 7 July following the end of the tax year (which itself ends 31 March).
Does this calculator handle Working for Families?
No — WfF is a separate refundable tax credit for parents with dependent children, calculated based on family income, number of children, and benefit-tested. If you receive WfF, uncheck the IETC box (the two are mutually exclusive) and calculate WfF separately via IRD's tools.

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