2026–27 tax year · New Zealand dollars
New Zealand Pay Rise Calculator
Compare a pay rise after individual income tax and the ACC earners’ levy, then add the KiwiSaver, student-loan and IETC options that fit your planning scenario.
Tax year: 1 April 2026 to 31 March 2027 · Annual planning estimate
Average across 26 periods per year.
Results updated. Estimated annual take-home change is $2,470.00.
New annual gross pay
$84,000
$84,000 annual equivalent
Fortnightly take-home change
$95.00
After selected annual deductions
Annual take-home change
$2,470.00
61.8% of the gross pay change retained
Gross employer KiwiSaver change
$140.00
Illustrative 3.5% gross contribution; not take-home
| Annual breakdown | Before | After | Change |
|---|---|---|---|
| Gross pay | $80,000.00 | $84,000.00 | $4,000.00 |
| Income tax before IETC | -$16,277.50 | -$17,597.50 | -$1,320.00 |
| ACC earners’ levy | -$1,400.00 | -$1,470.00 | -$70.00 |
| Employee KiwiSaver | -$2,800.00 | -$2,940.00 | -$140.00 |
| Estimated take-home | $59,522.50 | $61,992.50 | $2,470.00 |
| Gross employer KiwiSaver | $2,800.00 | $2,940.00 | $140.00 |
Employee KiwiSaver is deducted from current cash but does not reduce the modelled taxable salary. The illustrative gross employer KiwiSaver estimate is shown independently even when no employee contribution is selected. It excludes ESCT; actual contributions can differ because of eligibility, temporary rate reductions or employment agreements.
Planning estimate only, not tax advice or an exact PAYE calculation. See the site disclaimer.
What a 5% pay rise can mean after deductions
For $80,000 gross pay, a 5% rise makes the new salary $84,000. With 3.5% employee KiwiSaver, no student loan and no IETC, the $4,000 gross rise produces an estimated $2,470 more take-home per year, or $95.00 per fortnight.
Annual gross rise
$4,000
Annual take-home rise
$2,470
Fortnightly average
$95.00
Progressive tax bands and the capped ACC levy
New Zealand income tax is progressive: only income inside each band uses that band’s rate. The ACC earners’ levy is separate. For 2026–27 it is 1.75% on earnings up to $156,641, capped at $2,741.22.
| Income above | Marginal rate |
|---|---|
| $0 | 10.5% |
| $15,600 | 17.5% |
| $53,500 | 30% |
| $78,100 | 33% |
| $180,000 | 39% |
Keep retirement saving separate from spendable cash
From 1 April 2026, the standard default employee KiwiSaver rate is 3.5%, with 4%, 6%, 8% and 10% options. Employee contributions reduce current cash but do not reduce the modelled taxable salary. The employer card is an illustrative gross 3.5% estimate before ESCT, shown independently of the employee-rate selection and never added to take-home.
The optional student-loan result uses 12% above the annual $24,128 threshold for one main job. Payroll instead uses pay-period thresholds—$464 weekly or $928 fortnightly—and secondary jobs follow different rules.
IETC is optional because salary does not prove eligibility
A fully eligible person earning from $24,000 to $66,000 can receive up to $520 a year. It then reduces by 13 cents per dollar and reaches zero at $70,000. Working for Families, income-tested benefits, pensions and whole-month rules can affect eligibility, so the calculator never assumes it automatically.
How the 2026–27 estimate works
- 1Annualise the entered current and proposed pay.
- 2Apply the progressive individual income-tax bands to each annual salary.
- 3Apply IETC only when selected, then calculate the capped ACC earners’ levy.
- 4Subtract selected employee KiwiSaver and the optional annual main-job student-loan estimate.
- 5Compare before and after take-home, then convert the change to the selected period.
What the estimate excludes
Secondary tax codes, multiple jobs, tailored tax codes, Working for Families, benefits, pensions, bonuses, lump sums, allowances, exact payroll rounding, student-loan exemptions and overseas-borrower rules are excluded. Employer KiwiSaver is gross and excludes ESCT, eligibility exceptions, temporary rate reductions and negotiated remuneration arrangements.
Official sources
- Inland Revenue — Tax rates for individuals
Progressive individual rates applying from 1 April 2025, used for the 2026–27 tax year.
Checked 12 August 2026 · Direct IRD verification
- Inland Revenue — ACC earners’ levy rates
For 1 April 2026 to 31 March 2027: 1.75%, maximum liable earnings NZ$156,641 and maximum levy NZ$2,741.22.
Checked 12 August 2026 · Direct IRD verification
- Inland Revenue — Employee contributions to KiwiSaver
From 1 April 2026 the default and minimum standard employee rate is 3.5%; standard choices are 3.5%, 4%, 6%, 8% and 10%.
Checked 12 August 2026 · Direct IRD verification
- Inland Revenue — Employer contributions to KiwiSaver
The model shows the 3.5% minimum gross employer contribution separately; ESCT and employment-agreement exceptions are not modelled.
Checked 12 August 2026 · Direct IRD verification
- Inland Revenue — Repaying a student loan from salary or wages
Annual planning model for a New Zealand-based borrower’s main job: 12% over NZ$24,128. Actual deductions use pay-period thresholds and the employee’s tax code.
Checked 12 August 2026 · Direct IRD verification
- Inland Revenue — Independent earner tax credit
Optional full-year estimate only. Eligibility depends on more than salary, including Working for Families, benefits, pensions and whole-month rules.
Checked 12 August 2026 · Direct IRD verification
New Zealand pay rise questions
How much of a New Zealand pay rise will I keep?
It depends on the marginal income-tax rate, ACC earners’ levy and the KiwiSaver, student-loan and IETC options you select. The calculator runs both annual salaries through the same model and compares their take-home values.
Does KiwiSaver reduce taxable income?
No. This model calculates employee KiwiSaver from gross pay and subtracts it from current cash, but it does not reduce the salary used for income tax. Gross employer KiwiSaver is shown separately from take-home.
Is the employer KiwiSaver amount after ESCT?
No. It is a gross 3.5% estimate. The amount reaching your account can be lower after employer superannuation contribution tax, and eligibility or an employment agreement can change the result.
How is a New Zealand student loan estimated?
For a New Zealand-based borrower’s single main job, the annual estimate is 12% of salary above $24,128. Actual payroll deductions use pay-period thresholds and an SL tax code.
Should I include the independent earner tax credit?
Only select IETC if you know you are eligible for the full tax year. Salary alone cannot establish eligibility; Working for Families, income-tested benefits, pensions and whole-month rules can exclude or reduce entitlement.