Pay rise calculator NZ
A pay rise is taxed at your top bracket. On $65,000 you keep 64.8% of any rise after PAYE, ACC and 3.5% KiwiSaver (the KiwiSaver part is still yours, in your account). See your own figures below.
How much of a $1,000 rise you keep
| Current salary | Extra take-home a year | A week | Kept |
|---|---|---|---|
| $40,000 | $773 | $14.86 | 77.3% |
| $55,000 | $648 | $12.45 | 64.8% |
| $66,000 | $648 | $12.45 | 64.8% |
| $70,000 | $648 | $12.45 | 64.8% |
| $85,000 | $618 | $11.88 | 61.8% |
| $120,000 | $618 | $11.88 | 61.8% |
| $160,000 | $635 | $12.21 | 63.5% |
| $190,000 | $575 | $11.06 | 57.5% |
Every extra dollar loses its income tax rate, 1.75% ACC levy (until $156,641) and your KiwiSaver rate. A student loan takes another 12%. If you are on tax code ME, the IETC shrinks by 13c for every dollar between $66,000 and $70,000, so a rise in that range costs an extra 13%.
The employer side
Your employer's 3.5% KiwiSaver contribution rises with your pay too. Watch the ESCT brackets: on a rise from $60,000 to $65,000 the ESCT on that contribution jumps from 17.5% to 30%, so the employer contribution reaching your account falls from $1,733 to $1,593 a year.
FAQ
Can a pay rise leave me worse off in NZ?
Not through PAYE: brackets only tax the extra dollars at the higher rate. Losing means-tested support such as Working for Families can cost more than the tax.
Why is my first pay after a rise taxed more?
PAYE tables treat each pay as if you earned that much all year. Back pay paid in one go is taxed as an extra pay, so it can look heavily taxed.