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IR & Tax Calculator

IR & Tax Calculator

Old Aug 16th 2012, 12:20 am
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Default IR & Tax Calculator

Hi All,

I'm starting work in September and have perused the IR website and various others but seem to hit a brick wall when using the tax calculator on the IR website

The IR330 form suggests I'm a tax code "M"...

When punching in my daily gross salary amount (I'm assuming this is just annual salary / 365? - none the wiser here), this calculates my stoppages at 12%...

However another website suggests my salary to be 33% on ever $?

I've budgeted for the 33% off the gross annual - but can anyone put my mind at rest?

Thanks in advance
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Old Aug 16th 2012, 12:28 am
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Default Re: IR & Tax Calculator

Your main job will make your tax code 'M'

Tax rates
up to $14,000 10.5 cents excl ACC - 12.20 cents incl ACC
from $14,001 to $48,000 17.5 cents excl ACC - 19.20 cents incl ACC
from $48,001 to $70,000 30 cents excl ACC - 31.70 cents incl ACC
$70,001 and over 33 cents excl ACC - 34.70 cents incl ACC

you need to enter your annual gross salary. Not the daily gross.

HTH
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Old Aug 16th 2012, 12:47 am
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Default Re: IR & Tax Calculator

Originally Posted by BEVS View Post
Your main job will make your tax code 'M'

Tax rates
up to $14,000 10.5 cents excl ACC - 12.20 cents incl ACC
from $14,001 to $48,000 17.5 cents excl ACC - 19.20 cents incl ACC
from $48,001 to $70,000 30 cents excl ACC - 31.70 cents incl ACC
$70,001 and over 33 cents excl ACC - 34.70 cents incl ACC

you need to enter your annual gross salary. Not the daily gross.

HTH
thanks BEVS

Works a treat now lol
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Old Aug 16th 2012, 12:51 am
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Default Re: IR & Tax Calculator

I have found the site a bit hit and miss like that over the years , so it's not just you.
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Old Aug 17th 2012, 11:22 am
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Default Re: IR & Tax Calculator

Can I ask, what is ACC?
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Old Aug 17th 2012, 11:38 am
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Default Re: IR & Tax Calculator

Originally Posted by TommyLuck View Post
Can I ask, what is ACC?
http://www.acc.co.nz/

Great scheme, until you have to deal with them
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Old Aug 28th 2012, 12:09 pm
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Default Re: IR & Tax Calculator

33% is the top income tax rate. Depending on your line of work, you'll probably end up paying an average of about 25% of gross income.

There's a good NZ income tax calculator here that works out tax, ACC and kiwisaver (pension) payments http://www.salaries.co.nz/a/salary-tax-calculator/

By the way, there's a cap on ACC payments if you're lucky enough to earn a high income.
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Old Aug 28th 2012, 12:34 pm
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Default Re: IR & Tax Calculator

I was bored and worked out what you'd take home, based on the current tax brackets, including ACC, if you earned various amounts - based on a single earner (take home per year / take home per month);

20k - $17,140 / $1,428 per month
30k - $25,220 / $2,101 per month
40k - $33,300 / $2,775 per month
50k - $41,130 / $3,427 per month
60k - $49,326 / $4,110 per month
70k - $56,156 / $4,679 per month
80k - $62,686 / $5,223 per month
90k - $69,216 / $5,768 per month
100k - $75,746 / $6,312 per month
110k - $82,276 / $6,856 per month
120k - $88,806 / $7,400 per month
130k - $95,336 / $7,944 per month
140k - $101,866 / $8,488 per month
150k - $108,396 / $9,033 per month
160k - $114,926 / $9,577 per month

NB This data may not be 100% accurate, but it's close. Don't hold me to it.
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Old Aug 28th 2012, 1:10 pm
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Default Re: IR & Tax Calculator

Originally Posted by too soon View Post
33% is the top income tax rate. Depending on your line of work, you'll probably end up paying an average of about 25% of gross income.

There's a good NZ income tax calculator here that works out tax, ACC and kiwisaver (pension) payments http://www.salaries.co.nz/a/salary-tax-calculator/

By the way, there's a cap on ACC payments if you're lucky enough to earn a high income.
Am I missing something here...

Why when the top rate is 33% would I effectively end up paying I my 25%?

I'm in construction if that makes a difference?

The IRD calculator shows me paying 32.8% yet the other link shows 27.8%???
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Old Aug 28th 2012, 1:13 pm
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Default Re: IR & Tax Calculator

Think I've just worked it out...

You only pay the relevant tax attributable to each range / increment of pay?

So 10.5% on the first 14000
17.5% on the next 34000
Etc
Etc?
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Old Aug 28th 2012, 2:42 pm
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Default Re: IR & Tax Calculator

Originally Posted by mikesearle86 View Post
Think I've just worked it out...

You only pay the relevant tax attributable to each range / increment of pay?

So 10.5% on the first 14000
17.5% on the next 34000
Etc
Etc?
Yep
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Old Aug 28th 2012, 2:51 pm
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Default Re: IR & Tax Calculator

Originally Posted by TommyLuck View Post
Yep
Sweet deal... Extra 5% I didn't know I had
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