New Zealand PAYE Tax Rates 2024 & 2025

There are five PAYE income tax brackets - we explain what they are, how they work and how they affect your take home pay.

Updated 6 September 2024

There are five PAYE tax brackets for the 2024-2025 and 2023-2024 tax years: 10.50%, 17.50%, 30%, 33% and 39%. Your tax bracket depends on your total taxable income.

Our guide covers:

Know This First: What About National's Tax Cuts?

During the 2023 election, the National Party campaigned for changes in tax thresholds. Detailed information about their proposal is available on the National Party's official website. These tax changes were announced on 30 May 2024 and are effective from 31 July 2024.

2024-2025 PAYE Income Tax Brackets (From 1 August 2024, Announced on 30 May 2024 in the Budget)

Source: The Post (Tax Cuts Explained)

Tax rate	Taxable income bracket	Tax owed
10.5%	$0 to $15,600	10.50% of taxable income
17.50%	$15,601 to $53,500	$1,638 plus 17.50% of the amount over $15,600
30.00%	$53,501 to $78,100	$8,271 plus 30.00% of the amount over $53,501
33.00%	$78,101 to $180,000	$15,651 plus 33.00% of the amount over $78,100
39.00%	$180,000+	$49,277 plus 39.00% of the amount over $180,000

2023-2024 PAYE Income Tax Brackets (Up to 31 July 2024)

Tax rate	Taxable income bracket	Tax owed
10.5%	$0 to $14,000	10.50% of taxable income
17.50%	$14,001 to $48,000	$1,470 plus 17.50% of the amount over $14,000
30.00%	$48,001 to $70,000	$7,420 plus 30.00% of the amount over $48,000
33.00%	$70,001 to $180,000	$14,020 plus 33.00% of the amount over $70,000
39.00%	$180,000+	$50,320 plus 39.00% of the amount over $180,000

New Zealand has a simple, progressive and fair tax system - people with higher taxable incomes pay higher PAYE tax rates.
However, being "in" a tax bracket doesn't mean you pay that PAYE income tax rate on everything you earn. The way New Zealand's tax system works means that anyone with higher taxable incomes is subject to higher income tax rates, and people with lower taxable incomes are subject to lower income tax rates.
Tax brackets exist when the government divides your taxable income into chunks, with each chunk taxed at its corresponding rate. This means that whatever your tax bracket is, you won't pay that tax rate on your entire taxable income. Instead, you'll pay it proportionally to the IRD's tax bracket. Let's take two examples (using pre 31 July 2024 tax rates):

You have a $55,000 taxable income. That puts you in the 30% tax bracket, but you don't pay 30% on the whole amount of $55,000. Instead, you pay 10.50% on the first $14,000, then 17.50% on everything between $14,001 to $48,000, and then 30% on the rest.
You have a $25,000 taxable income. That puts you in the 17.50% tax bracket, but you don't pay 17.50% on the full amount of $25,000. Instead, you pay 10.50% on the first $14,000, then 17.50% on everything between $14,001 and $25,000.
Our guide to bracket creep is popular with middle-income New Zealanders who want to understand what higher pay means for take-home income.

Calculate Your PAYE Tax Now

What is a Marginal Tax Rate?

Your "marginal tax rate" is the tax rate you would pay on one more dollar of taxable income. By doing so, your tax bracket will be confirmed. For example, if you earn $75,000 and your wages go up, on every additional $1 you earn, the tax rate of 33% will be applied.

How do I get into a lower tax bracket and pay a lower PAYE?

Two common ways of reducing your final tax bill are:

Independent earner tax credit (IETC): If you're a New Zealand tax resident and you earn between $24,000 and $48,000 in a tax year, you might be able to get the independent earner tax credit (IETC).
Tax credits for donations: You can claim 33.33 cents for every dollar you donated to charities on the approved donee list. This means if you pay a total of $500 in registered charity domains in 12 months, then your taxable income would be reduced by $500 and your tax would be reduced by $500*0.33.

For more details, the IRD has published a comprehensive guide