Updated on
Glossary of PAYE, KiwiSaver and tax terms
The words used on New Zealand payslips, IR330 forms and Inland Revenue assessments, each with a link to the page that explains it in full.
- ACC earners’ levy
- A levy of 1.75 % on earnings up to $156,641 in 2026-27, deducted with PAYE, that funds cover for injuries outside work.
- Employer superannuation contribution tax (ESCT)
- Tax deducted from an employer’s KiwiSaver contribution before it reaches the fund, at a rate set by salary plus employer contributions.
- Extra pay
- A bonus, back pay or other lump sum paid on top of regular pay; PAYE on it uses the annualised pay of the last four weeks to find the rate.
- Government contribution
- The KiwiSaver top-up of 25 cents per dollar a member contributes, up to $260.72 a year, for members earning up to $180,000.
- Income tax assessment
- Inland Revenue’s end-of-year calculation, issued automatically for most employees after 31 March, which settles refunds and bills.
- Independent earner tax credit (IETC)
- A credit of up to $520 a year for incomes from $24,000 to $70,000, for people without Working for Families, NZ Super or a benefit.
- IR330
- The tax code declaration an employee gives an employer when starting a job; without it, the no-declaration rate of 45 % applies.
- IR330C
- The tax rate notification a contractor on schedular payments gives the payer, choosing a rate of at least 10 %.
- KiwiSaver
- The voluntary workplace savings scheme; employees contribute 3.5 % by default since 1 April 2026, or 4, 6, 8 or 10 %.
- Marginal tax rate
- The rate applied to the next dollar of income: 10.5, 17.5, 30, 33 or 39 % depending on the band.
- myIR
- Inland Revenue’s online account, used to check income, change tax codes, request a tailored code or a KiwiSaver rate reduction.
- PAYE
- Pay as you earn: income tax plus the ACC earners’ levy, deducted by the employer from each pay and passed to Inland Revenue.
- Provisional tax
- Tax paid in instalments during the year by people whose residual income tax exceeded $5,000 the year before.
- Residual income tax (RIT)
- The income tax left to pay after tax withheld at source and tax credits; it decides whether provisional tax applies.
- Schedular payments
- Payments to certain contractors from which the payer withholds tax at the rate on the IR330C.
- Secondary tax code
- SB, S, SH, ST or SA: a flat rate applied to a second job’s pay, chosen from total income from all jobs.
- Student loan repayment threshold
- The income below which no repayment is deducted: $24,128 a year, $464 a week for 2026-27.
- Tailored tax code
- A code with a rate set by Inland Revenue for one person, used when standard codes would deduct too much or too little.
- Tax year
- In New Zealand, 1 April to 31 March: the 2026-27 tax year runs from 1 April 2026 to 31 March 2027.
- Temporary rate reduction
- A KiwiSaver option to contribute 3 % instead of 3.5 % for three to twelve months, granted by Inland Revenue.
- Total remuneration package
- A pay offer expressed as salary plus employer KiwiSaver; the cash salary is lower than the headline figure.
Written by Radif Partners
Publisher of payroll calculators and practical guides · New Zealand PAYE, KiwiSaver and ACC
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Rates for 2026, last checked on