Xero’s free income tax calculator
Estimate your PAYE tax, ACC levy and take-home pay in seconds with Xero's free New Zealand income tax calculator. Whether you're an employee or sole trader, get instant clarity on what you'll owe the IRD.
- Instantly estimate your PAYE tax and ACC levy
- Add expenses for an accurate self-employed estimate
- Add KiwiSaver or a student loan for an accurate take-home figure
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Understanding Your Tax Calculation Results
Your results show PAYE income tax on NZ's progressive brackets (10.5%–39%), plus the ACC earners' levy (1.75%), KiwiSaver at your chosen rate, and student loan repayments of 12% above $24,128. Rates current for 2026–27.
Get more details on income taxMaster your income tax with Xero
Working out your income tax is even easier – and more accurate – with Xero accounting software. Your small business can streamline its tax process, whether you're recording expenses on the go or using the desktop software to file your tax return with the IRD.
- Automated calculations give you the correct figures every time
- All financial records are kept in one place to make tax season simpler
- Work with your accountant on the same numbers in real time with the cloud-based software
Are You Across the April 2026 KiwiSaver Changes?
From 1 April 2026, the default KiwiSaver contribution rate increases from 3% to 3.5% for both employees and employers, rising to 4% in 2028. Employees can opt down to 3% for up to 12 months. Make sure your payroll and take-home estimates reflect the new default rate.
Learn about the KiwiSaver changes
FAQs on Xero’s income tax calculator
Any New Zealand resident earning salary, wages, or sole trader income. The calculator covers PAYE employees and self-employed individuals, and handles student loan repayments, KiwiSaver contributions, salary sacrifice, and secondary income.
Any New Zealand resident earning salary, wages, or sole trader income. The calculator covers PAYE employees and self-employed individuals, and handles student loan repayments, KiwiSaver contributions, salary sacrifice, and secondary income.
The calculator uses current IRD tax brackets, the ACC earners' levy rate, and student loan thresholds. Results are estimates — your actual tax may differ based on deductions, investment income, and Working for Families credits. We recommend confirming figures with a registered tax agent.
The calculator uses current IRD tax brackets, the ACC earners' levy rate, and student loan thresholds. Results are estimates — your actual tax may differ based on deductions, investment income, and Working for Families credits. We recommend confirming figures with a registered tax agent.
PAYE (Pay As You Earn) means your employer deducts tax before paying you. As a sole trader you're responsible for calculating and paying your own income tax, ACC levy, and GST directly to the IRD. The calculator handles both — select your income type at the start.
PAYE (Pay As You Earn) means your employer deducts tax before paying you. As a sole trader you're responsible for calculating and paying your own income tax, ACC levy, and GST directly to the IRD. The calculator handles both — select your income type at the start.
The ACC earners' levy is 1.75% of your liable earnings from 1 April 2026, capped at $156,641. The maximum levy you'll pay in 2026–27 is $2,741. It funds New Zealand's accident compensation scheme and applies to all employees and self-employed workers.
The ACC earners' levy is 1.75% of your liable earnings from 1 April 2026, capped at $156,641. The maximum levy you'll pay in 2026–27 is $2,741. It funds New Zealand's accident compensation scheme and applies to all employees and self-employed workers.
If you have a second job or additional income source, it's taxed at a flat secondary rate based on your combined income. Enter your primary income amount and the calculator applies the correct secondary tax code automatically — from 10.5% (SB) up to 39% (ST).
If you have a second job or additional income source, it's taxed at a flat secondary rate based on your combined income. Enter your primary income amount and the calculator applies the correct secondary tax code automatically — from 10.5% (SB) up to 39% (ST).
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Disclaimer
Xero does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.
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