How accurate is our PAYE calculator?
Our calculator follows the same rules Inland Revenue gives payroll software for 2026/27. We test it against IRD's PAYE deduction tables, and the results match to the cent.
What rules does it follow?
We build the calculator from Inland Revenue's Payroll Calculations and Business Rules Specification. That's the document payroll software must follow.
- Each pay is turned into a yearly amount, then taxed using the brackets.
- The ACC earners' levy is added, up to the yearly cap.
- PAYE is truncated to the cent, not rounded, just as IRD requires.
- Student loan is 12% of pay over the threshold for each pay period.
Our test results
We check these cases every time rates change. Each one matches IRD's published figures.
| Test | Our result | Matches IRD |
|---|---|---|
| $60,000 a year, code M, weekly PAYE | $216.74 | Yes |
| $1,000 a week, code M SL, student loan | $64.32 | Yes |
| $500 a week, code SH | $158.75 | Yes |
| $500 a week, code ND | $233.75 | Yes |
| Highest ACC levy for 2026/27 | $2,741.22 | Yes |
| IETC on $68,000, code ME | $260 | Yes |
Why your payslip might still differ
Your payslip may include things the calculator can't see. Examples are a bonus, overtime, back pay, child support or a tailored tax code. Enter the same details and the figures should match.
When do we update rates?
Every 1 April, after each Budget, and whenever IRD, ACC or Employment New Zealand announce a change. See the rates changelog.
Found a difference?
Tell us what you entered and what you expected. We'll check it against IRD and reply.