Question 1

Where does my New Zealand income tax go?

Accepted Answer

Based on the 2025/26 Budget Economic and Fiscal Update, the largest categories of New Zealand government spending are: Social Security & Welfare (34.3%), Health (22.6%), Education (14.6%), Debt Interest (6.2%), Justice & Law Enforcement (5.0%), and Transport & Infrastructure (4.1%). Use the Taxed calculator to see your personal contribution to each category.

Question 2

How is New Zealand PAYE income tax calculated?

Accepted Answer

New Zealand PAYE is calculated using progressive tax brackets: 10.5% on income up to $14,000; 17.5% from $14,001 to $48,000; 30% from $48,001 to $70,000; 33% from $70,001 to $180,000; and 39% on income above $180,000.

Question 3

How much does New Zealand spend on health?

Accepted Answer

New Zealand's government is forecast to spend approximately $33.2 billion on health in 2025/26, representing about 22.6% of total Core Crown expenditure. This covers public hospitals, disability support, Pharmac subsidies, and ACC health payments.

Question 4

How much does New Zealand spend on NZ Superannuation?

Accepted Answer

New Zealand Superannuation is forecast to cost $24.7 billion in 2025/26, making it the single largest line item in government spending and approximately 49% of the total Social Security & Welfare budget.

Question 5

What is New Zealand's government debt?

Accepted Answer

New Zealand's gross government debt is forecast to reach approximately $224 billion in 2025/26. Interest on that debt is forecast at $9.1 billion for the year, which represents about 6.2% of total Core Crown expenditure.

Question 6

Does this calculator include ACC and KiwiSaver?

Accepted Answer

The core receipt shows income tax (PAYE) only. ACC earners' levy and KiwiSaver contributions can be added separately using the toggles on the calculator, as they are deductions from your pay but are not technically taxes.