New Zealand’s income tax follows a progressive structure — you only pay higher rates on income above each threshold. Understanding the current NZ tax brackets is essential for every Kiwi, whether you’re an employee, a freelancer or an investor. This guide covers the income tax brackets, how PAYE works, the ACC levy, secondary tax, PIE investment tax, and how it all affects your take-home pay. It’s general information, not tax advice — for your situation, check with IRD or a tax professional.
NZ income tax brackets
New Zealand uses a progressive system, so different portions of your income are taxed at different rates.
Investment (PIE) tax and take-home pay
If you invest through a KiwiSaver or managed fund, income is usually taxed within the fund as a Portfolio Investment Entity (PIE) at your Prescribed Investor Rate (PIR) — capped at 28%, even if your income-tax rate is 33% or 39%. Your PIR is based on your income over the last two years:
Getting your PIR right matters — set too low, you’ll owe tax at year end; too high, and (unlike other overpayments) you may not get it back. Check yours with IRD.
Take-home pay on $80,000 (indicative)
≈ $1,145 a week. Exact amounts vary with your tax code, KiwiSaver rate and circumstances.
For a full walkthrough of how income tax is calculated, see our income tax guide.
How PAYE works
If you’re employed, you pay tax through PAYE (Pay As You Earn) — your employer deducts it each payday and sends it to IRD, so most wage and salary earners don’t need to file a return.
Reference sources
- Inland Revenue — tax rates for individuals (official): ird.govt.nz
- Inland Revenue — find your Prescribed Investor Rate (PIR): ird.govt.nz/pir
- ACC — the earners’ levy rate: acc.co.nz
- Sorted — plain-language money and tax guides: sorted.org.nz
You can see your exact figures with our PAYE calculator guide, and KiwiSaver is covered in depth in our KiwiSaver guide.
Investment tax and your take-home pay
Investment income through funds is taxed differently from your salary — and it’s worth seeing how the deductions add up on a real income.
How the NZD price of Bitcoin works
Bitcoin trades globally 24/7 in US dollars; its NZD price is that USD price converted at the NZD–USD rate — so two variables move it.
That’s why Bitcoin can rise in NZD terms even when it’s flat in USD: if the NZ dollar weakens against the USD, each bitcoin buys more NZ dollars. Here’s the effect, using illustrative round numbers:
| Scenario | BTC/USD | NZD/USD | BTC in NZD |
|---|---|---|---|
| Starting point | $80,000 | 0.60 | ~$133,300 |
| NZD weakens | $80,000 | 0.58 | ~$137,900 |
| BTC rises 10% | $88,000 | 0.58 | ~$151,700 |
For context: in late August 2026 one bitcoin was roughly US$78,000 (about NZ$133,000) — but that was around 30% below its October 2025 record high, a reminder of how sharply the price swings. These figures date fast, so always check a live tracker. The main drivers: global crypto sentiment (institutional flows, ETFs, regulation), the NZD–USD rate, the four-yearly “halving” supply cycle, and broad macro conditions (interest rates, inflation, liquidity).
If you’re building an investment portfolio, our investing guide covers how PIE tax fits in.
Resident vs non-resident
If you’re a New Zealand tax resident, you pay tax on your worldwide income; if you’re a non-resident, you pay tax only on NZ-sourced income, and some income types may have different withholding rates. Residency depends on the days you spend in NZ, whether you have a permanent place of abode here, and IRD’s determination — so if you’re moving to or from New Zealand, it’s worth confirming your status with IRD.
Common tax mistakes to avoid
The most frequent errors are simple ones: believing all your income is taxed at your top bracket (it isn’t — only the portion above each threshold is); using the wrong tax code (especially after a job change or with a second income); forgetting the ACC levy reduces your take-home; not updating IRD after your circumstances change; an incorrect secondary tax code; underpaying as a contractor (contractors pay provisional tax, not PAYE); ignoring student loan deductions; and misunderstanding how KiwiSaver affects your pay. Getting your tax code and PIR right upfront avoids most of these.
Final thoughts
Tax in New Zealand follows a progressive system, from 10.5% up to 39%, and once you understand how marginal rates, PAYE, the ACC levy, PIE tax and secondary tax fit together, managing your income and planning your finances becomes much simpler. The single most valuable habit is checking your tax code and PIR are correct — and bookmarking IRD’s rates page to check each April, since thresholds and levy rates can change with the new tax year.
Disclaimer: This article is general information about tax rates in New Zealand, not tax or financial advice. Tax rates, thresholds and levy rates are set by law and change over time (the figures here reflect the 2025–26 tax year) — always confirm current figures and your specific obligations with Inland Revenue (ird.govt.nz) or a registered tax agent before acting.
Buying Bitcoin in NZ — and the risks
How Kiwis typically buy
- Choose an exchange — an NZ-friendly platform that accepts NZD, with solid security and clear fees.
- Verify your identity — standard KYC with your NZ driver licence or passport.
- Deposit NZD — usually by bank transfer or debit card (fees vary).
- Buy a fraction — you don’t need a whole bitcoin; you can buy a tiny amount (“Sats”) for as little as a few dollars.
- Decide on storage — leave it on the exchange, or move it to your own wallet (a hardware “cold” wallet for larger holdings).
- Extreme volatility: it can move 5–10% in a day, and recently fell ~30% from its record high — only invest what you can afford to lose.
- No safety net: crypto isn’t covered by NZ’s deposit protection or financial dispute schemes; if an exchange fails or you’re scammed, there’s little recourse.
- Security is on you: lose your wallet keys or fall for a scam and the funds are usually gone for good.
- Keep it small: many Kiwis limit crypto to a small share of a portfolio, keeping KiwiSaver, an emergency fund and stable savings intact.
Frequently asked questions
What are the tax rates in NZ?
Five progressive brackets for 2025–26 (unchanged for 2026–27): 10.5% on income to $15,600; 17.5% on $15,601–$53,500; 30% on $53,501–$78,100; 33% on $78,101–$180,000; and 39% over $180,000. You pay each rate only on the portion of income within that band. These thresholds were raised on 31 July 2024, so older figures ($14,000/$48,000/$70,000) are out of date.
How does the progressive system work?
Different portions of your income are taxed at increasing rates — so a pay rise never leaves you worse off overall, because the higher rate applies only to the income above each threshold. Your effective (average) rate is always lower than your top marginal rate.
What is the ACC earners’ levy?
A flat levy that funds accident compensation, currently around 1.75% on earnings up to a cap, deducted automatically alongside PAYE. It’s separate from income tax but reduces your take-home pay.
What tax bracket is $60,000 in, and what about $100,000?
At $60,000 your top marginal rate is 30% (you’re in the $53,501–$78,100 band). At $100,000 it’s 33%, but only the income above $78,100 is taxed at 33% — the rest is taxed at the lower rates beneath it.
Do I pay more tax with two jobs?
No. A secondary tax code applies higher withholding to your second job to prevent underpayment during the year, but your total tax is based on your total income, and IRD reconciles any difference at year end.
Is KiwiSaver taxed, and do contractors pay PAYE?
Your KiwiSaver contributions come from pay that’s already been taxed, so they’re not taxed again; your employer’s contributions are taxed via ESCT. Contractors don’t pay PAYE on business income — they pay provisional tax instead.
Are NZ tax rates changing?
The brackets are currently frozen — the 2026–27 thresholds are the same as 2025–26 (they were last changed on 31 July 2024). The ACC levy and KiwiSaver default rate did change from 1 April 2026, so check the current figures with IRD.
Related guides: Average Salary in New Zealand, Minimum Wage NZ and Living Wage NZ.
