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Useful next calculations
Rates & sources2026/27
IRD ACC earners levy rate and maximum liable earnings. Industry work-levy rates remain user-selected estimates.
Source: IRD — ACC earners levy — source checked for 2026/27.
When to use this calculator
- Before accepting a pay change, bonus or contribution arrangement.
- When you want a simple take-home or conversion estimate before payroll or filing.
- When you need to convert between hourly, monthly and annual pay.
- When you want to compare two pay scenarios using the same assumptions.
A realistic New Zealand planning example
Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.
| Input | Value |
|---|---|
| Annual Income (NZ$) | NZ$70,000 |
| Employment Status | Employee (earner levy only) |
| Work Type (self-employed only) | Office / professional (low risk ~0.7%) |
After entering these figures, review earner levy, work levy (self-emp) and employer levy together rather than in isolation. Then rerun the tool with one input adjusted.
How to read your results
Earner Levy
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Work Levy (self-emp)
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Employer Levy
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Total Annual ACC
The headline outcome of this calculation. It is most useful when read alongside the supporting metrics rather than in isolation.
Weekly
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Fortnightly
The figure produced by this output for the inputs you entered. Change one variable at a time if you want to see what drives it.
Method & assumptionsAuthoritative sources
This calculator estimates your ACC levies for the current New Zealand tax year (1 April to 31 March). Employees pay the earners’ levy, collected by their employer through PAYE and remitted to IRD. It is a flat rate on earnings up to the annual maximum liable earnings — not another marginal tax bracket — so it stops increasing once earnings pass the cap shown in the guidance below. Self-employed workers also pay an industry-based work levy, which together with the earners’ levy can represent a meaningful cost, particularly in trades, construction and other physical occupations.
The self-employed work levy and the employer levy shown here use representative average rates. Actual work levies vary by ANZSIC industry classification and are set by ACC each year in the ACC Levy Regulations, so self-employed people and employers should treat these figures as an estimate and confirm their actual rates with ACC. Levy rates include GST.
Common mistakes
- !Using an assumption that is not supported by a current local quote, bill, statement or official source.
- !Treating a generic estimate as a lender, provider, payroll or tax authority decision.
- !Mixing monthly and annual inputs without converting them consistently.
- !Testing only one scenario instead of checking how a cautious assumption changes the result.
What to do next
- Run a second scenario with a cautious assumption so you can see the downside clearly.
- Compare the result with the related calculators below before making a decision.
- Check current local rules, eligibility and provider terms before applying or committing money.
- Keep a record of the assumptions so you can update the estimate when a quote, bill or pay figure changes.
The ACC earners’ levy — rate, cap and how it is collected
Guidance reviewed 2 September 2026The earners’ levy funds New Zealand’s Accident Compensation Corporation (ACC) no-fault cover for injuries. Employees pay it through PAYE — their employer deducts it alongside income tax and remits it to IRD — which is why it appears on payslips even though it is not income tax.
The levy is a flat rate on liable earnings up to an annual maximum, so it is not another marginal tax bracket: it neither increases with your marginal band nor applies above the cap. Self-employed people also pay an industry-based work levy, and employers pay work levies for their staff; both are set per industry classification rather than at one national rate.
| Earners’ levy (2026/27) | 1.75% of liable earnings up to $156,641 (maximum $2,741.22) — collected through PAYE, includes GST |
|---|---|
| Already set for 2027/28 | 1.83% up to $160,244 (maximum $2,932.47) for 1 April 2027 to 31 March 2028 |
| Self-employed work levy in this calculator | Illustrative bands: 0.7% (low risk) / 2% (medium) / 3% (high risk) — actual rates vary by ANZSIC classification unit |
| Employer levy in this calculator | Flat 0.8% representative average — actual employer work levies are set by ACC per industry |
Worked example (illustrative figures only)
- Inputs:
- Employee · NZ$80,000 liable earnings · 2026/27
- Estimate:
- Earners’ levy $1,400.00 a year (≈ $26.92 a week / $53.85 a fortnight)
- What it means:
- A self-employed low-risk worker on the same income would also carry the illustrative 0.7% work levy ($560.00), lifting the total to $1,960.00 (≈ $37.69 a week). Both the earners’ levy and the work levies stop once liable earnings pass the annual cap — earning more changes nothing further.
- What is excluded:
- Actual self-employed and employer work levies vary by ANZSIC industry classification and are set each year in the ACC Levy Regulations — the calculator’s bands are representative averages, not your classification rate.
Example values only — not financial advice.
Assumptions
- Employees pay the earners’ levy only: 1.75% on liable earnings up to $156,641.
- Self-employed users also see the illustrative work-levy band selected (low/medium/high); employer users see the representative 0.8% average.
- Liable earnings are capped at the annual maximum, and levy rates include GST.
- The estimate uses the tax year 1 April to 31 March.
Not included
- Your actual work levy depends on your ANZSIC classification unit and any ACC experience adjustments — confirm with ACC or IRD; this page does not reproduce the official classification tables.
- This calculator estimates levies only; it does not assess ACC cover, claims or entitlements.
- Health-and-safety-related levy components that ACC folds into work levies are not itemised separately.
- Not an invoice: the amounts ACC or IRD actually charge can differ from these approximations.
Reading the result
- Check your actual rate in myACC or with ACC before budgeting — especially if you are self-employed, where classification dominates the cost.
- Because the earners’ levy is flat up to the cap, it takes a proportionally larger bite at $60,000 than at $250,000.
- If you are an employee, you cannot opt out of the earners’ levy; it is part of every PAYE deduction.
Frequently asked
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