Question 1

How is PAYE calculated in NZ?

Accepted Answer

NZ uses a progressive tax system with 5 brackets: 10.5% on the first $15,600, 17.5% up to $53,500, 30% up to $78,100, 33% up to $180,000, and 39% above that. Each bracket only taxes the income within that range.

Question 2

What is the ACC earner levy?

Accepted Answer

The ACC earner levy is 1.67% of your income (2025/26), up to a maximum of $152,790. It funds accident compensation cover for all NZ residents.

Question 3

How much tax do I pay on $80,000 in NZ?

Accepted Answer

On an $80,000 salary, you'd pay approximately $16,278 in PAYE tax and $1,336 in ACC levy, leaving a net take-home of about $62,387 per year ($5,199/month).

Question 4

Is KiwiSaver deducted before or after tax?

Accepted Answer

KiwiSaver employee contributions are deducted from your gross pay before tax. However, the contributions themselves are not taxed — they grow tax-free in your fund.

Question 5

What is the student loan repayment threshold?

Accepted Answer

If you earn over $24,126 per year, you must repay 12 cents for every dollar above that threshold. NZ student loans are interest-free while you live in NZ.

Gross annual	$85,000
Gross monthly	$7,083
Gross weekly	$1,635

PAYE tax	-$17,928
ACC levy	-$1,488
KiwiSaver (3.5%)	-$2,975

Net annual	$62,610
Net monthly	$5,218
Net fortnightly	$2,408
Net weekly	$1,204