New Zealand KiwiSaver & ACC Levy · 2026 Payroll Guide
In New Zealand, payroll deductions are administered simply through Inland Revenue (IRD). Every employee pays PAYE income tax, the universal ACC Earners' Levy, and optional KiwiSaver retirement contributions.
1. Accident Compensation Corporation (ACC) Earners' Levy
Unlike other OECD economies that separate healthcare, workers compensation, and social insurance, New Zealand funds comprehensive 24/7 no-fault personal injury coverage via the ACC Earners' Levy. Collected by IRD via PAYE, the rate is 1.60% on all employment earnings up to NZ$142,283.
2. KiwiSaver Contribution Mechanics
New employees are automatically enrolled in KiwiSaver but may opt out between day 14 and day 56 of employment. Employees choose a contribution rate of 3%, 4%, 6%, 8%, or 10% deducted from gross salary. Eligible contributing employees receive a minimum 3% compulsory employer contribution.
3. Employer Superannuation Contribution Tax (ESCT)
Compulsory employer contributions to KiwiSaver are not tax-free. They are subject to ESCT deducted at source. The ESCT rate (10.5%, 17.5%, 30%, 33%, or 39%) is determined by the employee's total salary and employer contributions during the previous tax year.
4. National PAYE Tax Brackets
New Zealand's progressive income tax brackets apply uniformly across the country: 10.5% up to NZ$15,600, 17.5% from $15,601 to $53,500, 30% from $53,501 to $78,100, 33% from $78,101 to $180,000, and 39% on all income above NZ$180,000.
All figures, threshold ceilings, and contribution formulas in this guide are grounded directly in published legislation from the Inland Revenue (Te Tari Taake) PAYE & Deductions Tables ↗ .