PAYE / Income Tax Rates / ACC – (updated 2020)

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PAYE / Income Tax Rates / ACC – (updated 2020)

Intel Accountants_Income Tax

PAYE

If your income is from salary, wages, benefits or taxable pensions, your tax will automatically be deducted under the PAYE (pay as you earn) system. This means when you get your weekly, fortnightly, or monthly pay, your tax has already been deducted from it.

PAYE is the tax your employer deducts from your salary and wages. It includes:

– the tax rate for your income, and
– an ACC earners’ levy

Income tax rates for individuals

The rates in the table below apply from 1 April 2019 onwards.

Taxable incomeIncome tax rates for every
$1 of taxable income
(excluding ACC earners’ levy)
PAYE rates for every
$1 of taxable income
(including ACC earners’ levy*)
up   to $14,00010.5 cents11.89 cents
from   $14,001 to $48,00017.5 cents18.89 cents
from   $48,001 to $70,00030 cents31.39 cents
$70,001   and over33 cents34.39 cents
No   notification**45 cents46.39 cents

ACC earners’ levy rates

All employees must pay an ACC earners’ levy to cover the cost of non-work related injuries. It is collected by us on behalf of the Accident Compensation Corporation (ACC).

Employers deduct the earners’ levy from wages. It is included as a component of PAYE deductions.

Earners’ levy is charged at a flat rate each year: The Current Year (2020/21 onwards) ACC Levy Rate is $1.39 per $100 i.e. 1.39%

Income Tax Calculator

The IRD has some very good calculators to workout your tax on your taxable income. Click the link below and then Start.

http://www.ird.govt.nz/calculators/tool-name/tools-t/calculator-tax-rate.html

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