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Bonus / Extra Pay Tax Calculator

Calculate the PAYE deducted from a bonus, commission, or back pay using the IRD extra pay rules. See your net bonus after tax, ACC, KiwiSaver and student loan.

Updated 2026-27 FYData stays on your deviceIRD sourced data

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

Frequently Asked Questions

How is a bonus taxed in NZ?
A bonus or commission is treated as "extra pay" by IRD. Tax is calculated by adding the bonus to your annualised regular income and applying the appropriate marginal PAYE rate (10.5%, 17.5%, 30%, 33%, or 39%). ACC earner’s levy of 1.75% also applies (capped at $156,641 of earnings). KiwiSaver and student loan deductions apply too. There is no special "lower" bonus rate — bonuses are taxed at the same rate as the rest of your income. Source: IRD — Calculate PAYE on Extra Pay.
Why is so much tax taken off my bonus?
It looks like more because the bonus is added on top of your regular salary, often pushing part of it into a higher tax bracket. For example, someone on $80,000 receiving a $10,000 bonus has the bonus taxed at the 33% bracket, plus 1.75% ACC, plus KiwiSaver and student loan if applicable — that is roughly 36–47% in deductions on the bonus. This is the correct rate; if too much was withheld, you can claim it back at the end of the financial year. Source: IRD.
Can I reduce the tax on a bonus?
You cannot reduce the PAYE on a bonus directly, but you can: (1) salary-sacrifice it into KiwiSaver (employer must agree) which delays tax until withdrawal at age 65; (2) request the bonus be paid across two financial years if it would push you into a higher bracket; (3) claim deductible work expenses to reduce your overall taxable income. Always check with a tax agent before tax planning. Source: IRD.

A bonus, commission, back pay, or one-off lump sum is treated as "extra pay" by IRD. PAYE is calculated using a special method that estimates your annualised income and applies the appropriate marginal tax rate. ACC earner’s levy and KiwiSaver/student loan also apply.

How this calculator works

Enter your normal annual salary and the bonus amount. The calculator annualises the bonus over the pay period it is paid in, finds the highest marginal tax rate that applies (10.5%, 17.5%, 30%, 33%, or 39%), then deducts PAYE, ACC ($1.75/$100), and any selected KiwiSaver / student loan amounts.

NZ Extra Pay PAYE Rates (2026-27)

Annualised income $0–$14,00012.82% (PAYE + ACC)
$14,000–$48,00019.82%
$48,000–$70,00032.32%
$70,000–$180,00035.32%
Above $180,00041.32% (no ACC above $156,641)

PAYE rate + 1.75% ACC earner’s levy (capped at $156,641).

Worked Examples

$10,000 bonus paid to someone on $80,000 salary

Approx net bonus: $6,468

  1. Annualised total: $90,000 → 33% bracket
  2. PAYE: $10,000 × 33% = $3,300
  3. ACC: $10,000 × 1.75% = $175
  4. KiwiSaver 3.5%: $350
  5. Student loan 12% (over threshold): may apply
  6. Net bonus: $10,000 - $3,825 = $6,175

Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.

Last updated:

Official Sources

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