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Income tax rates
Income tax rates are applied to your combined income at the end of the tax year to work out your tax obligation.
Tax rates for the 2017-2018 tax year
Secondary income is taxed at a flat rate throughout the year.
- as an employee receiving salary or wages your employer must use the no-notification code at a rate of 45% if you haven’t given them a completed Tax code declaration (IR330) form
- as a contractor subject to schedular payments your payer must use the no-notification rate of 45%, or 20% if you’re a company who is a non-resident contractor, if you haven’t given them a completed Tax rate notification for contractors (IR330C) form.
If you’re a non-resident entertainer your rate will always be 20% whether you’ve provided the IR330C or not.
Calculate your income tax
Our Tax on annual income calculator works out the income tax for your taxable income. It also shows you the related income tax rates. It doesn’t include other deductions like the ACC levy, KiwiSaver or your student loan.
Calculate your take home (net) pay
Our PAYE / KiwiSaver deductions calculator includes all deductions such as PAYE, KiwiSaver, child support and student loan repayments.
If you’re a self-employed contractor and you perform one of the activities on the IR330C, your tax code is “WT”. You’ll have tax deducted from your schedular payments at the rate listed on page 3 of the IR330C, or at a rate chosen by you (subject to minimums).
Certificate of exemption
You may qualify for a certificate of exemption if you’re in business and you have a good record of filing returns and paying tax.
If you have a certificate of exemption you don’t need to have tax deducted from your schedular payments during the year.
Activities not listed in the table
If you’re a contractor and your work is not listed on the IR330C, you don’t need to have tax deducted from your income during the year. You can opt to have your payments treated as voluntary schedular payments which means tax will be deducted from these payments during the year.
All contractors (individuals and companies) must file an income tax return at the end of the tax year.
In most cases companies don’t have tax deducted from their earnings unless they:
- operate in the agricultural, horticultural or viticultural industry, eg, supplying labour to prune or thin fruit trees or vines, or to pick fruit or grapes
- are receiving payments made by a labour hire business under a labour hire arrangement, or
- are a non-resident contractor or a non-resident entertainer.
Companies will pay tax on their income at the end of the tax year.