Full-time on the New Zealand adult minimum wage ($23.50 × 40h × 52 weeks). The cleanest reference point for everyone working a 40-hour minimum-wage job.
On a gross salary of $48,880, you'll keep about $38,891 after PAYE, the ACC earner levy and a 3.5% KiwiSaver contribution (the new minimum from 1 April 2026). Your effective tax rate is around 16.9%, and every additional dollar you earn beyond this point is taxed at your marginal rate of 17.5%.
Estimates only. Excludes secondary tax codes, Working for Families and IETC. For any of those, use the full PAYE calculator or, for refunds, the tax refund estimator.
On a $48,880 salary you pay approximately $7,462 in PAYE income tax for the 2025/26 year, plus $816 in the ACC earner levy. Your effective tax rate (PAYE + ACC) is around 16.9%, and every additional dollar you earn is taxed at your marginal rate of 17.5%.
$48,880 a year works out to about $23.50 per hour gross, assuming a 40-hour week and 52 weeks a year. After PAYE, ACC and a 3.5% KiwiSaver contribution, your take-home is approximately $18.70 an hour.
At the new 3.5% default rate (effective 1 April 2026), you'd contribute about $1,711 a year from a $48,880 salary, and your employer would match at least 3.5% on top. If you choose to lift your rate to 4%, 6%, 8% or 10%, your contribution scales proportionally — but the employer match is capped at 3.5%.
