What the Tax

See where your money really goes in New Zealand.

$

Actual Taxes

$0

PAYE + ACC + GST + Excise

Compulsory Deductions

$0

KiwiSaver + Student Loan

Total Taken

$0

Everything that leaves your hands

That's $62 in tax every single day.

The government collects $22,755 from you every year. That's $62 every single day — before you've bought groceries, paid rent, or put petrol in the car.

Time = Money = Tax

Your time at work, measured in who benefits

Your Year

Working for government Working for you
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec

Tax Freedom Day: 17 March

Based on income tax as a proportion of the year

But you only work 5 days a week

You owe 85 work days of tax — at 5 days/week that takes 17 weeks

You don't start earning for yourself until 29 April

85

work days for government

175

work days for you

1.6

days/week for tax (of 5)

The traditional Tax Freedom Day is 17 March. But working a 5-day week, it takes until 29 April to physically work off your 85 days of tax.

Your Payslip

What happens to your pay before it reaches your bank account

Gross Salary
$70,000
PAYE
-$13,221
ACC Levy
-$1,169
KiwiSaver
-$2,450
Take Home
$53,161
You earn $70,000. You receive $53,161. The difference? Gone before it reaches your bank account.

PAYE Bracket Breakdown

$0 – $15,600 @ 10.5%$1,638
$15,600 – $53,500 @ 17.5%$6,633
$53,500 – $78,100 @ 30.0%$4,950
Total PAYE$13,221

Your marginal rate is 30.0% — on your next dollar earned, the government takes 30 cents.

Your Effective Hourly Rate

What an hour of your work is really worth, after tax takes its cut

Gross Hourly

$0

What your employer pays per hour

Take-Home Hourly

$0

What hits your bank account

Real Hourly

$0

After spending taxes too

Every hour you work

PAYE
You keep
PAYE: $6.36/hrACC: $0.56/hrGST: $2.47/hrExcise: $1.20/hrKiwiSaver: $1.18/hrYou keep: $21.89/hr
You think you earn $33.65/hr but after all taxes and deductions, you really keep $21.89/hr. That's $11.76 lost every single hour you work.

The Hidden Taxes on Your Spending

Income tax is just the beginning. Here's what you pay every time you spend.

GST Paid

$5,141

15% on almost everything you buy

Excise Duties

$2,489

Fuel, alcohol & tobacco duties

Rent / Mortgage

$20,800/year — GST exempt

$0

Rates, Insurance & Utilities

$5,200/year

$678

GST $678

Groceries

$10,400/year

$1,357

GST $1,357

Dining Out & Takeaways

$3,640/year

$475

GST $475

Transport & Fuel

$6,500/year

$2,998

GST $848 + Excise $2,150

Clothing & Footwear

$1,820/year

$237

GST $237

Health & Medical

$1,560/year

$203

GST $203

Communication

$1,820/year

$237

GST $237

Recreation & Entertainment

$3,900/year

$509

GST $509

Alcohol

$1,300/year

$509

GST $170 + Excise $339

Personal Care

$780/year

$102

GST $102

Education

$520/year

$68

GST $68

Financial Services

$520/year — ~30% subject to GST

$20

GST $20

Other Spending

$1,820/year

$237

GST $237

On top of income tax, you pay $5,141 in GST every year. That's a 15% surcharge on almost everything you buy — including food. Rent is the one thing that escapes.
Of every dollar you spend on petrol, roughly 48 cents is tax — excise duty, the ETS levy, and GST charged on top of those taxes. Yes, you pay tax on tax.

What You Actually Get to Save

After the government takes its cut and you cover your expenses

Per Year

$0

Per Month

$0

Per Week

$0

Savings Rate

14.0% deficit

You're spending more than you earn after tax

You're $7,420 in the red every year. After the government takes $22,755 in tax, you simply can't cover your expenses. That's not a budgeting problem — that's a system problem.

The Full Picture

Every dollar of your income, accounted for

Your Income$70,000
PAYE
Take Home (after spending tax)
PAYE: $13,221ACC: $1,169GST: $5,141Excise: $2,489KiwiSaver: $2,450Take Home (after spending tax): $45,530

20.6%

Income tax rate (PAYE + ACC)

32.5%

Total tax rate (inc. GST + excise)

24.1%

All deductions from pay

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WhatTheTax.nz

On a salary of $70,000

$22,755 in total tax

Effective rate: 32.5% · Take-home: $53,161