dave_the_leg

Can someone tell me what taxes you have to pay in NZ?

I know there is income tax and sales tax, but is there anything like National Insurace to pay on top of that? Is there any local property tax/rates? Is there anything like the road fund license? Are there any other taxes I haven't even considered?

Thanks

happynz

Hi Dave,

Be aware that you will be taxed from the get go. It is a Pay As You Earn (PAYE) system.

0-38,000 - 19.5%

38,0001 - 60,000 - 33%

60,001 - the moon - 39%

For example, lets say you were on $80K. You'd pay $7410 on the first 38,000. On the next $22,000 you'd pay $7260. On the next $20000 you'd pay $7800. Altogether on your $80K your income tax would be $22,470.

You also can expect to have 1.6% deducted for ACC (Accident Compensation Corporation). So with the income tax and ACC and assuming an $80K income as a rough estimate you'd be netting around $1080 per week.

There is the Goods and Services Tax (GST) added on to everything and it's 12.5%. It is built into the price of nearly everything so you probably won't notice it too much.

If you are a property owner you will have council rates to deal with. Those vary depending on location and property. Renters don't usually pay rates as rates are considered part of the landlord's overhead and is built into the rent.

I don't know what a road fund licence is. There is car registration and twice yearly warrant of fitnesses for cars. If you have a diesel you will have to pre-pay mileage.

That's about all I can think of for now.