PAYE calculator
Take-home pay after income tax, compulsory levies and retirement contributions, line by line.
Take-home pay
Estimate$63,103
22.8% in tax and levies against a 33.0% marginal rate
- PAYE
- $17,928
- ACC earners' levy
- $1,419.50
- KiwiSaver
- $2,550.00
| Gross salary | $85,000 |
|---|---|
| PAYE | -$17,928 |
| ACC earners' levy | -$1,419.50 |
| KiwiSaver at 3% | -$2,550.00 |
| Take-home | $63,103 |
- The ACC earners' levy is charged on top of PAYE at 1.67% of liable earnings, capped at $152,790. A PAYE-only figure overstates your take-home.
- Your employer also contributes 3%, but ESCT is deducted from it first, so about $1,785 of the $2,550 reaches your account.
On $85,000 the ACC earners' levy adds about $1,420 on top of income tax, so a tax-only figure overstates take-home.
How this is calculated
How this is calculated
Levies are charged separately from income tax
New Zealand's ACC earners' levy is 1.67% of liable earnings up to $152,790, on its own base and outside the PAYE tables — about $1,420 a year on $85,000.
levy = rate × min(salary, ceiling)Bands apply to slices of income
Only the amount inside each band pays that rate. On $85,000 in New Zealand the 33% rate applies just to the portion above $78,100, not to the whole salary.
Employer contributions can be taxed before you get them
New Zealand taxes the compulsory 3% employer KiwiSaver contribution at your ESCT rate first, so roughly $1,760 of a $2,550 contribution reaches your balance.
Worked example: $85,000 salary with 3% retirement contributions
| Salary | $85,000 |
|---|---|
| Contribution | 3% |
| Levy | about $1,420 |
|---|---|
| Contribution | $2,550 |
Payslip deductions differ by country. Pick a country above for the levies and contributions that apply to you.
What this assumes
- A standard tax code with no secondary income.
- Employment income only.
- A full tax year of earnings.
- No family or income credits applied.
Where this commonly goes wrong
- Secondary employment is often taxed at a flat rate that over-deducts until the year is reconciled.
- Student loan repayments are typically a fixed percentage above a threshold, unrelated to the outstanding balance.
- Contractors frequently have tax withheld but levies invoiced separately, which arrives as an unexpected bill.
Questions
What comes out of a New Zealand pay packet?
PAYE on five marginal bands from 10.5% to 39%, the ACC earners' levy at 1.67% of liable earnings, KiwiSaver if you are enrolled, and student loan at 12% above $24,128.
Why is the levy separate from income tax?
It funds injury cover rather than general revenue, is charged on its own base up to $152,790, and sits outside the tax tables — so any figure derived from tax rates alone is too high.
Do employer retirement contributions arrive in full?
Not in New Zealand. The compulsory 3% is taxed at your ESCT rate before it reaches your account, so roughly $1,760 of a $2,550 contribution actually lands.
How are student loan repayments collected?
Through the same pay run as PAYE, at 12% of every dollar above the $24,128 annual threshold. The rate is fixed regardless of the balance outstanding, so overpaying only shortens the repayment period.
Related tools
Sources
General estimate based on published Inland Revenue rates for the current period. Not tax advice. Confirm your position with IR or a qualified adviser.
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