Salaries tax and allowances
Estimate current-year salaries tax for 2025/26 or 2024/25. Compare progressive and standard rates, then apply that year’s reduction. Next-year provisional tax is kept out of the result.
Calculation method and scope
For 2024/25 and 2025/26 only: basic/married allowance 132,000/264,000; eligible child allowance 130,000 with an additional 130,000 for a child born that year. Mandatory retirement deduction is capped at 18,000. Progressive rates are 2%, 6%, 10%, 14% on successive 50,000 bands, then 17%. Compare with 15% of the first 5 million of net income before allowances and 16% above. Apply the lower tax, then the annual reduction (3,000 maximum for 2025/26; 1,500 for 2024/25). Not for 2026/27.
Excludes personal assessment, optimising spouses’ assessment, foreign-income exemptions, departure cases, special relief and eligibility decisions. Amounts display cents; official rounding and adjustments are for IRD. Results exclude provisional-tax credits and next-year provisional tax and are not the tax-demand balance.
Calculations run in this browser; the entered data is not submitted to the website.
Questions about the result
Does the calculator require monthly salary or annual income?
Enter annual assessable income for the selected assessment year, including applicable bonuses, commission and taxable benefits. 2025/26 covers 1 April 2025 to 31 March 2026, not the calendar year.
Why can the result differ from the tax demand?
It estimates current-year salaries tax after the annual reduction. It does not add next-year provisional tax or deduct provisional tax already paid and other credits. The demand also reflects the actual assessment, payments and adjustments.
Does selecting married always reduce tax?
The married person’s allowance has eligibility conditions. Whether separate or joint assessment produces a lower tax bill depends on both spouses’ income and deductions. The calculator applies the allowance entered after eligibility has been checked; it does not compare the spouses’ assessment options.
Can this calculate 2026/27 tax?
No. The 2026/27 allowances differ. Use the tool only for its selected years.