Two deductions went up
The income tax bands did not move on 1 April 2026: 10.5% on the first $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000 and 39% above that, the thresholds that took effect part-way through 2024. Two other lines on your payslip did change.
The ACC earners' levy rose from 1.67% to 1.75% of your pay, and the most it is charged on rose from $152,790 to $156,641. Both were set when the government fixed ACC's levy rates for three years from 2025-26. The rise is 8 cents on every 100 dollars, which is why the second impact table, with KiwiSaver held at 3%, shows take-home pay down by a small and steady share at every salary, and by a little more above the old maximum.
KiwiSaver's default rate is now 3.5%
The default employee contribution went from 3% to 3.5%, and 3.5% became one of the rates you can choose. The 2025 Budget set a further rise to 4% from April 2028. A contribution of 3% is now available only through a temporary rate reduction, so if you were on the old default your deduction rises by half a percent of your salary. That is the larger drop in the first impact table: it is money going into your own KiwiSaver account, not tax, and Inland Revenue requires your employer's compulsory contribution to rise to 3.5% as well.
You can apply in myIR for a temporary rate reduction if you would rather stay at 3% for now, and your employer may match it. The second impact table shows what your pay looks like then.
What stayed the same
Student loan repayments are still 12% of pay above $24,128, and the independent earner tax credit is still $520 a year from $24,000, withdrawn above $66,000. With no tax code, PAYE is still taken at the non-notified rate of 45%. To see your own figure, try your salary in the take-home pay calculator.