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Taxes in New Zealand

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in New Zealand.

New Zealand’s tax structure is relatively uncomplicated. Key features include a progressive personal income tax and a Goods and Services Tax (GST) of 15% on most purchased goods.

Employer Company Income Tax
28 %

Flat rate

KiwiSaver

Kiwisaver is a voluntary work-based retirement scheme set up by the government. The program is for citizens and permanent residents living in the country.

Employers must contribute 3% of the employee’s salary unless they have opted out of the scheme (or unless they are already contributing to another superannuation fund for their employees).

Employer superannuation contribution tax (ESCT)

ECST is deducted from your employer contributions to your employees' KiwiSaver or complying funds.

The employer is responsible for determining the correct ESCT rate for each employee. The rate varies based on the employee’s salary and their tenure with the business.

Employee Personal Income Tax
10.5 %

$0-$14,000

17.5 %

$14,001-$48,000

30 %

$48,001-$70,000

33 %

$70,001-$180,000

39 %

$180,000+

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