How the calculator works
Plain-English detail on how we turn your gross pay into a take-home figure, and where the numbers come from.
The steps
- We annualise your pay (for example, weekly pay × 52) and round down to whole dollars, the way Inland Revenue does.
- We apply New Zealand’s progressive income tax brackets to work out your PAYE income tax.
- We add the ACC earners’ levy — 1.75% of income up to $156,641 for 2026/27.
- If you’ve chosen them, we deduct KiwiSaver (a percentage of gross pay) and student loan (12% of income over $24,128).
- We apply the independent earner tax credit if you’ve enabled it and you’re in the eligible income range.
- What’s left is your take-home pay, shown per week, fortnight, month and year.
Our sources
The rates come from Inland Revenue’s published figures for the 2026/27 tax year, including the Payroll Calculations & Business Rules Specification that payroll software follows, and ACC’s earners’ levy rates. You can see them all on our NZ tax rates page.
Why your real pay might differ slightly
- Your tax code may apply credits or secondary-income rules we don’t model by default.
- Employers round each pay period, which can shift the result by a few cents.
- Other deductions — union fees, child support, payroll giving — are not included.
This tool is a free estimate to help you understand your pay. It is not tax advice. For official figures, use ird.govt.nz.