In a time of financial anxiety, New Zealanders are welcoming the effect on their take home pay of very long awaited tax cuts. From the first of October, income taxes will be levied progressively as follows:

New Zealand Income Tax Rates:

Income Tax Rate
Up to $14,000 12.5%
$14,001 – $40,000 19%
$40,001 – $70,000 33%
$70,001 and over 39%

A worker earning $40,000 a year will now take home $32,790 after tax, while someone earning $70,000 a year will take home $52,790.

The required income calculation on the ENZ Cost of Living Calculator has been updated to take account of the new tax bands