The ACC earners levy explained
On an $80,000 salary the ACC line on your payslip takes $1,400 a year, about $116.67 a month. It never appears in the tax brackets, so it is easy to miss, and it is the smallest deduction on the slip.
The rate and the cap
| Earners levy rate for 2026-27 | 1.75% |
| Maximum earnings the levy applies to | $156,641 |
| Most you can pay in a year | $2,741.22 |
The levy applies to income up to $156,641 and nothing above it. The government resets both numbers each tax year.
Your income tax on $80,000 is $16,277.50, so the levy is a small slice next to that. It still comes off every pay, in the same way as tax. Put another way, you pay about $11.63 of PAYE for every $1 of levy. On a fortnightly pay the levy is about $53.85.
The levy is flat. On $40,000 it is $700, exactly half of the $1,400 on $80,000. It starts from the first dollar you earn.
What the money buys
ACC covers accidents. Break a wrist playing netball or fall off a ladder at home and ACC helps pay for treatment, whoever was at fault. If the injury stops you working, weekly compensation can cover up to 80% of your income (ACC, weekly compensation). The earners levy funds cover for injuries outside work. Injuries at work are paid for by a separate levy that employers pay. If you are self employed, ACC invoices you directly, which this site does not cover.
What happens above the cap
On $200,000 the levy stops at $156,641, so you pay $2,741.22. Without a cap it would have been $3,500. Across the whole salary that works out at 1.37%.
The cap shifts your marginal rate too. Below $156,641 the levy adds 1.75% to the rate on your next dollar. Between $78,101 and $156,641 that makes the combined rate 34.75%. Above the cap the levy adds nothing, and on $160,000 the marginal rate falls back to 33%. Source for the cap: Inland Revenue, about tax codes.
A raise below the cap costs you $17.50 of levy for every extra $1,000. That is why the marginal rates on this site sit a little above the bracket rates.
The levy at five salaries
| Salary | Levy a year |
|---|---|
| $40,000 | $700 |
| $80,000 | $1,400 |
| $150,000 | $2,625 |
| $200,000 | $2,741.22 |
| $300,000 | $2,741.22 |
The last two rows are identical. Once you pass the cap, earning more changes nothing here. Someone on $300,000 pays the same $2,741.22 as someone on $156,641, which is just 0.91% of their pay.
Every salary page shows the levy on its own line next to PAYE, and the calculator does the same for your pay.
Keep reading
How PAYE income tax works in New ZealandKiwiSaver and your take home payHow student loan repayments work in New ZealandHow New Zealand tax codes work