NZ Income Tax & PAYE — Brackets and Tax Codes (2026)
About this article
Sourced from New Zealand Acts of Parliament (legislation.govt.nz), regulations, and official government guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards
What is this right?
New Zealand taxes personal income on a progressive scale with no tax-free threshold — every dollar is taxed, but at rising rates. For the 2025–26 tax year the brackets are: 10.5% on income up to $15,600; 17.5% to $53,500; 30% to $78,100; 33% to $180,000; and 39% above $180,000.
If you're an employee, your employer deducts PAYE (pay-as-you-earn) each payday using your tax code, so most people don't file a return. Inland Revenue automatically issues an income tax assessment after the tax year (which ends 31 March); if you've overpaid you get a refund, and if you've underpaid you may owe. Getting your tax code right matters — the wrong code is the most common reason for an unexpected bill. (Confirm the current-year brackets on ird.govt.nz.)
When does it apply?
- You earn income in New Zealand (salary, wages, self-employment, investments).
- You received an end-of-year assessment showing a refund or bill.
- You're unsure your tax code is right.
What to do about your income tax
- Check your tax code matches your situation (use IRD's tax-code tool).
- Review your year-end assessment in myIR and confirm the figures.
- Claim a refund if you overpaid; arrange a payment plan if you owe.
- Contact IRD (0800 775 247) if something looks wrong.
What should you NOT do?
- Don't ignore an end-of-year bill — interest and penalties add up.
- Don't use the wrong tax code across multiple jobs.
- Don't assume there's a tax-free threshold — there isn't.
About Tax Rights in New Zealand
New Zealand tax is administered by Inland Revenue (IRD) under the Income Tax Act 2007 and the Tax Administration Act 1994, with GST under the Goods and Services Tax Act 1985. There is no tax-free threshold — income is taxed from the first dollar across progressive brackets, with PAYE deducted by your employer. GST is a flat 15%. You can dispute an assessment you disagree with, and there are targeted credits like Working for Families and the Independent Earner Tax Credit.
Tax year: 1 April – 31 March. IRD: 0800 775 247; manage everything in myIR.
Common Questions
What is the income tax and paye basics right in New Zealand?
New Zealand taxes personal income on a progressive scale with no tax-free threshold — every dollar is taxed, but at rising rates. For the 2025–26 tax year the brackets are: 10.5% on income up to $15,600; 17.5% to $53,500; 30% to $78,100; 33% to $180,000; and 39% above $180,000.If you're an employee, your employer deducts PAYE (pay-as-you-earn) each payday using your tax code, so most people don't file a return. Inland Revenue automatically issues an income tax assessment after the tax year (which ends 31 March); if you've overpaid you get a refund, and if you've underpaid you may owe. Getting...
When does it apply — income tax and paye basics?
You earn income in New Zealand (salary, wages, self-employment, investments).You received an end-of-year assessment showing a refund or bill.You're unsure your tax code is right.
What are the income tax rates in New Zealand?
Check your tax code matches your situation (use IRD's tax-code tool).Review your year-end assessment in myIR and confirm the figures.Claim a refund if you overpaid; arrange a payment plan if you owe.Contact IRD (0800 775 247) if something looks wrong.
What should you NOT do — income tax and paye basics?
Don't ignore an end-of-year bill — interest and penalties add up.Don't use the wrong tax code across multiple jobs.Don't assume there's a tax-free threshold — there isn't.