Pay rise calculator: your rise before and after tax
Put in your pay before and after the rise, as a salary or an hourly rate. The calculator shows the rise in dollars and percent, then works out your take-home pay both ways, so you see what the rise really adds to each pay after PAYE, ACC, KiwiSaver and any student loan.
Worked out for the example. Change the boxes to make it yours.
| Pay before | $68,000 a year |
|---|---|
| Pay after | $72,000 a year |
| Rise before tax | $4,000 a year (+5.9%) |
| Take-home a year, before | $51,810 |
| Take-home a year, after | $54,400 |
| Rise after tax a year | $2,590 |
| Each fortnightly pay, before tax | $153.85 more |
| Each fortnightly pay, after tax | $99.62 more |
| Kept from each extra dollar | 65 cents |
- Worked on the 2026/27 rates: PAYE, ACC earners' levy 1.75% up to $156,641, KiwiSaver at 3.5%.
- Tax credits such as Working for Families and the independent earner tax credit are not included.
Your Career, on the Career and Timesheets plan. Your account adds the new pay and the date it starts to Pay in Your Career, after asking, where your pay is tracked over time and against prices.
How the rise is worked out
The rise before tax is the new pay less the old pay, and the percentage is that difference divided by the old pay. An hourly rate is turned into a year's pay by multiplying it by your hours a week and by 52. The calculator then works out your take-home pay at the old figure and at the new one, on the 2026/27 rates, and the rise after tax is the gap between the two. Each pay is the year divided by 52 for weekly pay, 26 for fortnightly or 12 for monthly.
Why you keep less than the headline rise
Every extra dollar is taxed at the top rate your income reaches. From 1 April 2025 the rates are 10.5% up to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000 and 39% above that. The ACC earners' levy takes 1.75% of earnings up to $156,641 in the 2026/27 year, KiwiSaver takes your contribution rate, and a student loan takes 12% of income above $24,128. On a salary between $53,500 and $78,100 with KiwiSaver at 3.5% and no student loan, that leaves about 65 cents of each extra dollar. Our guide to working out your take-home pay shows each deduction, and how a pay rise changes your student loan repayments covers the loan.
A rise never leaves you worse off through tax alone: only the dollars above a threshold are taxed at the higher rate. Tax credits are different. Working for Families and the independent earner tax credit reduce as income rises, and the calculator does not include them, so if you receive one, check it with Inland Revenue.
Is the rise keeping up with prices?
Stats NZ's consumers price index rose 4.1% in the year to the June 2026 quarter. A rise smaller than that, after a year without one, means your pay buys a little less than it did, and the calculator says so. Has your pay kept up with prices? explains how to compare over more than a year.
When the rise counts
No law requires a yearly pay rise. Employment New Zealand says an employer has no legal obligation to give one unless an employment agreement or workplace policy says so, but pay must stay at or above the minimum wage: $23.95 an hour for adults from 1 April 2026. A rise takes effect from the date agreed, and the first pay after it may be part old rate and part new.
Questions
How do I work out my pay rise percentage?
Take the old pay from the new pay, divide by the old pay and multiply by 100. A rise from $68,000 to $72,000 is $4,000, and $4,000 divided by $68,000 is 5.9%.
How much of my pay rise will I actually get after tax?
It depends on the top tax rate your income reaches, plus ACC, KiwiSaver and any student loan. Between $53,500 and $78,100, with KiwiSaver at 3.5% and no student loan, you keep about 65 cents of each extra dollar. The calculator works out your own figure.
Will a pay rise push me into a higher tax bracket and leave me worse off?
No. Only the dollars above each threshold are taxed at the higher rate, so your take-home pay always goes up. Tax credits that reduce as income rises, such as Working for Families, are the exception to check.
Is my employer required to give me a pay rise every year?
No, unless your employment agreement or a workplace policy says so. Employment New Zealand says there is no legal obligation to give a pay rise, but pay must stay at or above the minimum wage.
What happens when I save my rise?
Your account adds the new pay, with the date it starts, to Pay in Your Career, after asking. Your Career is part of the Career and Timesheets plan, and you can change or remove the entry there.
Sources
- Employment New Zealand: setting pay, pay reviews and pay rises.
- Inland Revenue: ACC earners' levy rates.
- Inland Revenue: KiwiSaver employee contributions.
- Inland Revenue: student loans.
- Inland Revenue: tax rates for individuals.
- Stats NZ: Consumers price index, June 2026 quarter.
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