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.
About this calculator
This calculator implements extra pay PAYE method from Inland Revenue (IRD). Last consulted 1 April 2026. Verify the figures yourself by following the link.
Current NZ bonus / extra pay rules
FY 2026-27 (matches PAYE brackets)- •Method: Annualised marginal rate
- •Bonus PAYE rates: 10.5% / 17.5% / 30% / 33% / 39%
- •ACC on bonus: Yes — 1.75% (until cap)
- •KiwiSaver on bonus: Yes — your normal rate
- •Student loan on bonus: Yes — 12% if above threshold
Source: IRD — Extra pay
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.
How NZ bonus / extra pay tax is calculated
Bonuses are taxed using the 'extra pay' method — IRD calculates what your annual income would be including the bonus, then applies that marginal rate to the bonus alone.
- 1
Estimate annualised income WITH the bonus
Annualised = (year-to-date_pay × 52 ÷ weeks_so_far) + bonus_amount
Predicts what your income would look like if you got this bonus every year.
- 2
Identify marginal rate for that income level
Marginal rate = bracket(annualised_income) (10.5% / 17.5% / 30% / 33% / 39%)
Pick the bracket the TOP dollar of the annualised total would fall in.
- 3
Apply that rate to bonus only
Bonus_PAYE = bonus × marginal_rate
Method ensures total annual tax stays correct without massively over-deducting just for one big payment.
- 4
Don't forget KiwiSaver, ACC, Student Loan on bonus
Other = bonus × (ks_rate + 1.75% + 12%_if_SL)
All standard deductions apply to extra pay — KS, ACC and SL all come off the bonus too.
Worked example
Inputs: $80k salary, $10k bonus, 3.5% KS, no student loan
Result: Annualised = $90k → 33% bracket. Bonus PAYE: $3,300. ACC: $175. KS: $350. Net bonus: $6,175.
Frequently Asked Questions
How is a bonus taxed in NZ?
Why is so much tax taken off my bonus?
Can I reduce the tax on a bonus?
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–$15,600 | 12.25% (PAYE + ACC) |
| $15,600–$53,500 | 19.25% |
| $53,500–$78,100 | 31.75% |
| $78,100–$180,000 | 34.75% |
| Above $180,000 | 40.75% (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
- Annualised total: $90,000 → 33% bracket
- PAYE: $10,000 × 33% = $3,300
- ACC: $10,000 × 1.75% = $175
- KiwiSaver 3.5%: $350
- Student loan 12% (over threshold): may apply
- 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 reviewed: