New Zealand taxation system

A three-step taxation system applies to salary earners in New Zealand.

From 1 April 2009 single wage earners earning:

• up to $14,000 are taxed at 12.5 percent (excluding ACC's earners' levy)
• $14,001 to $48,000 are taxed at 21 percent (excluding ACC's earners' levy)
• $48,001 to $70,000 are taxed at 33 percent (excluding ACC's earners' levy)
• $70,001 and over are taxed at 38% (excluding ACC's earners' levy)
• the ACC earner premium at the rate 1.7 percent of liable earnings (salary) will also be deducted as part of their PAYE (Pay as you Earn) deductions.

GST (Goods and Services Tax) of 12.5 percent is levied on all goods and services.

Overseas teachers, you should apply for an IRD number as soon as your position is confirmed.  If you wait until starting your job, you are likely to be taxed at the non-declaration rate.

Tax returns/claims should be submitted to the Inland Revenue Department by 7 June each year.