Changes for the 01 April 2025 - 31 March 2026 Tax Year
iPayroll has been updated with the new 2025-2026 tax tables for payrolls with payment dates on or after 01 April 2025.
ACC Earner levy has increased. The ACC Earner Levy rate will be 1.67% (previously 1.60%) which will affect all employees.
ACC Threshold has increased to $152,790 (previously $142,283)
Student Loan threshold has stayed at $24,128 for employees repaying Student Loans (using Tax Codes M SL or ME SL)
ESCT (Employer Super Contribution Tax) % rates will recalculate and be applied to any pay dates after 01 April 2025.
Calculation changes have been made to the EP (Extra Pay) or Lump Sum components for Final or Termination pays.
Minimum wage, Starting out and Training pay rates change on 01 April 2025, which will affect any employee currently paid minimum wage. You will need to review and amend Pay Rates for employees. Please use Reports > HR > Staff - Pay Rates.
For more information here Final Pay from 01 April 2025
For more information here Tax Rates for Individuals 01 April 2025
For more information here Pay Rates - Edit an employee
For more information here Employment New Zealand - current minimum wage rates
Use the Timesheet Entry > Compare Payslips or Calculations to review the changes for an employee
ACC Earner levy
The ACC Earner Levy rate has increased to 1.67% which will change the PAYE deduction, so the Take Home Pay is reduced slightly.
Student Loan Threshold
The student loan repayment threshold has not changed and stays at $24,128. The threshold is the amount of money anyone can earn BEFORE Student Loan is deducted.
- Weekly earnings excluded from Student Loan is $464
- Fortnightly earnings excluded from Student Loan is $928
- Monthly earnings excluded from Student Loan is $2010.66
Final Pays - Extra Pay
Any Pay Elements identified in iPayroll with the Allowance Type - Extra Pay (Liable for ACC Earner Levy) or Extra Pay / WT (No ACC Earner Levy) will be taxed using the extra pay calculations. Previously the last 4 weeks earnings were used, from 01 April 2025 the last two paid pays will determine the percentage the payment will be taxed.
This example the person is paid weekly and their hours can vary. They have worked the last two pays. In their final pay of 21 April, they will receive an extra payment of $1,000.
Pay Date | Total Gross Taxable pay (excluding extra payment) |
21 April Final Pay | $800.00 |
14 April | $650.00 |
07 April | $550.00 |
Annualised Calculation:
Paid 14 April and 07 April - Add $650 plus $550 = $1200 which represents two weeks, multiply this by 26 = $31,200 plus extra payment of $1,000 = Grossed up amount $32,200
Between $15.601 to $53,500 range so Tax Rate for the EP (extra payment) is 17.5% plus ACC levy of 1.67% = 19.17%
For more information and examples here Final Pay 01 April 2025
Related Articles
2024 – 2025 TAX Table updates 01 April 2024
Changes for the 01 April 2024 - 31 March 2025 Tax Year iPayroll has also been updated with changes to Personal Tax Rates that take effect on 31 July 2024. Any payment made on or after 31 July will be calculated using the new rates. iPayroll has been ...2023 – 2024 TAX Table updates 01 April 2023
Changes for the 01 April 2023 - 31 March 2024 Tax Year. iPayroll has been updated with the new 2023-2024 tax tables and these changes will be applied automatically to pay dates after 01 April 2023. You don't need to do anything. ACC Earner levy has ...What is the minimum wage?
Minimum Wage From 01 April 2025 the minimum wage will increase to $23.50 per hour (before tax) for employees aged 16 years or over. The starting out and training wages will increase to $18.80 per hour (before tax). This is a legislative requirement ...5. Opening Tax Balances
As part of your implementation we would require Earnings Certificates or you will need to provide their year to date earnings for the current Tax year (01 April to their last pay) information.Personal Tax Rate changes - 31 July 2024
Personal Tax Rate changes As part of the annual Government Budget 2024, changes to personal income tax rates were confirmed to be effective from 31 July 2024. iPayroll has been updated, you will not be required to do anything. From the first payday ...