Take-Home Pay in New Zealand
|Salary Before Tax|
|Total Tax Due|
|Salary After Tax||Enter salary|
- Salary Before Tax
- your total earnings before any taxes have been deducted. Also known as Gross Income.
- Salary After Tax
- the money you take home after all taxes and contributions have been deducted. Also known as Net Income.
- Total Tax Due
- the sum of all taxes and contributions that will be deducted from your gross salary.
|Your Take-Home Pay:|
|Your Gross Salary:|
|Average Gross Salary:||$ 6,231 / mo|
|Minimum Wage:||$ 21.20 / h|
|Avg. Working Hours:||40 / week|
|Total Paid Leave:||32 / year|
How to Use the Salary Calculator for New Zealand
With our New Zealand salary calculator, you can quickly estimate your wages after taxes. All you have to do is select the frequency with which you're paid, enter your gross salary, and then press the calculate button. You'll then see a breakdown of your yearly, monthly, and weekly wages before and after tax.
It goes without saying that taxes are nuanced — depending on personal circumstances, what you owe can drastically change. In order to make our take-home pay calculator easy to use, we had to simplify tax situations by assuming you're unmarried and have no dependents. That means what you really owe in taxes may be higher or lower once all circumstances and deductions are accounted for.
How Is Salary Calculated and Paid in New Zealand?
To figure out your take-home pay, or net salary, you need to subtract your taxes and deductions from your gross income, which is your income before all expenses. If you're a full-time employee in New Zealand, this is generally done for you by your employer, who automatically deducts taxes from your paycheck.
However, if you're self-employed, you must file an IR3 individual tax return to claim your income and expenses. To give you a clearer idea of how much of your salary will go toward taxes, we'll break down the relevant expenses in our next section. To get a quick after-tax estimate, run your gross salary through our take-home pay calculator.
Taxes Included in This NZ Salary Calculator
Our New Zealand salary calculator accounts for all of the major expenses and contributions you can expect to make on tax day. We mentioned earlier that full-time employee wages are taxed at the time of payment — this is called "tax at source", and it's a crucial part of New Zealand's pay-as-you-earn (PAYE) scheme. Accident Compensation Corporation (ACC) levies and the Independent Earner Tax Credit (IETC) are applied at source as well. This NZ salary calculator accounts for all three:
- Income Tax: Pay in New Zealand is taxed at a progressive rate, starting at 10.5% for incomes under $14,000 and capping at 39% for incomes over $180,000.
- Accident Compensation Corporation: ACC levies are a form of insurance that entitles you to healthcare and rehabilitation if you're hurt outside of work.
- Independent Earner Tax Credit: The IETC provides up to $520 of tax credits for individuals who are New Zealand tax residents earning between $24,000 and $48,000.
For in-depth information about the tax system, visit our Tax Calculator for New Zealand.
What Is a Good Salary in New Zealand?
A "good" pay in New Zealand is one that affords a comfortable lifestyle, but depending on where you live, what it takes to be comfortable can vary quite a bit. You can find a full breakdown of average salaries in the What is the Average Salary in New Zealand section. There, we report that most New Zealanders earn a salary of around $61,828 yearly before tax, which comes out to $49,357 annually, or $4,113 a month, after taxes.
To determine if you can afford to live in a certain region of New Zealand, you can consult our table below to see what most people earn in each region. As a rule of thumb, if your salary falls at or above these averages, then it's probably enough to afford living in the region. The more your salary exceeds the average, the more comfortable you can expect to be.
|Region||Average Annual Salary||Median Annual Salary|
|Bay of Plenty||$76,908||$67,860|
What Is the Minimum Wage in New Zealand?
Each year, the New Zealand government sets and reviews the national minimum wage. Only employees above the age of 16 are subject to minimum wage, and depending on an employee's status (if they're training, starting-out, or adults), the minimum wage differs.
According to the government's official Employment New Zealand website, the rates for the 2022 tax year are as follows:
- Adult Minimum Wage: $21.20 an hour. Applies to all employees over the age of 16 who aren't training or starting out, or who are involved in supervisory or training roles, such as overseeing or instructing coworkers.
- Starting-Out Minimum Wage: $16.96 an hour. Applies to all employees who are 16 or 17 and have worked for their current employer for fewer than six consecutive months; or all employees who are 18 or 19, have been paid social security benefits for at least six months, but have worked for fewer than six months continuously.
- Training Minimum Wage: $16.96 an hour. Applies to all employees 20 or older who are working to fulfill education credits within an industry training program — not for non-student employees who are simply in the training period of their jobs.
What Is the Average Salary in New Zealand?
To get an idea of what most New Zealanders earn, the median salary is generally more representative than the average (which tends to skew toward high outlier salaries). That said, according to the Household Labour Force Survey (HLFS) survey for June 2022, the median weekly pay for New Zealand residents was $1,189. Before tax, that's an annual salary of $61,828. After tax, that works out to a yearly take-home salary of $49,357 or a monthly take-home pay of $4,113, according to our New Zealand salary calculator.
This number is quite a bit higher if we look at the average weekly salary, coming out to $1,438. According to our calculator, that's a yearly take-home salary of $58,088 and a monthly take-home salary of $4,841.