How much do you get taxed per dollar in NZ?

Answer 1

Answer

You get taxed at different rates for parts of you income:

You are taxed 12.5% when you earn up to $14000

21% from $14001 - $40000

33% $40001 - $70000

39% $70001 +

45% with no IRD number

You need to add on the ACC levy on top of this which is 1.4% for the 2009 financial year.

Here is an example to work out how much you should be taxed:

Johns taxable income for the year was $65238

up to $14000 at 12.5% = $1750

$14001 - $40000 at 21% = $5460

$40000 - $65238 @ 33% = $8328.54

Total tax to pay = $15538.54