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How much of my bonus do I keep?
The tax your employer takes off a bonus, why it's that rate, and whether some comes back after 31 March.
Enter your bonus to see the tax your employer will take, why it's that rate, and how much lands in your bank. For example, a $2,000 bonus on $3,000 a fortnight lands as about $1,235.00.
Uses 2026/27 rates · figures last checked October 2026.
Sources
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How tax on a bonus works in New Zealand
A bonus is an "extra pay", and IRD gives employers one method for all of them. Take your gross pay for the last four weeks and multiply it by 13 (or a month's pay by 12) to get a yearly figure. Add the bonus. Whichever band that total falls in sets a single rate, and the whole bonus is taxed at it.
Because the rate is flat, a bonus that pushes you over a bracket line is taxed as if all of it sat in the higher bracket. Your regular pay is taxed on a sliding scale, so the year-end assessment usually finds the bonus was taxed a little more than it really added, and refunds the difference.
| Yearly pay + bonus | Rate |
|---|---|
| $0 to $15,600 | 12.25% |
| $15,601 to $53,500 | 19.25% |
| $53,501 to $78,100 | 31.75% |
| $78,101 to $156,641 | 34.75% |
| $156,642 to $180,000 | 33% |
| Over $180,000 | 39% |
Includes the 1.75% ACC earners' levy, which stops at $156,641. Second-job codes add a starting amount before the rate is picked; the calculator handles that under Advanced options.
Bonus tax questions, answered
- Why is my bonus taxed so much?
- Your employer doesn't add a bonus to your normal pay and tax it on the usual scale. IRD's extra pay method works out your yearly pay from the last four weeks, adds the bonus, and taxes the whole bonus at the one rate for the bracket that total lands in. If the bonus tips you into a higher bracket, all of it is taxed at that higher rate, even though only part of it really sits there.
- Will I get some of my bonus tax back?
- Often, yes. After 31 March IRD works out the tax you really owe on your whole year's income. If the flat extra pay rate took more than the bonus really added, the difference comes back as a refund (it can also go the other way). The calculator estimates this, assuming your pay stays the same all year.
- What tax rate applies to a bonus in New Zealand?
- For 2026/27: 12.25% up to $15,600, 19.25% up to $53,500, 31.75% up to $78,100, 34.75% up to $156,641, 33% up to $180,000, 39% above of yearly pay plus the bonus. Those rates include the 1.75% ACC earners' levy, which stops at $156,641.
- Does student loan come out of my bonus?
- Yes. On a main tax code it's 12% of the part of your pay plus bonus that's over the pay-period threshold, which for most people is 12% of the whole bonus. On a secondary code it's 12% of every dollar.
- Does KiwiSaver come out of a bonus?
- Yes. Bonuses and commission count as pay, so your usual KiwiSaver rate comes off and your employer's compulsory contribution applies on top. Redundancy payments are the exception: no KiwiSaver deduction and no ACC levy.
- Is a Christmas bonus taxed differently?
- No. A Christmas bonus, performance bonus, commission, back pay or a lump sum of holiday pay are all extra pays, taxed the same way.
- What if it's my final pay when I leave a job?
- Since 1 April 2025, a lump sum paid when you leave is worked out from your last two pay periods instead of the last four weeks. For a steady pay that gives the same answer as this calculator.
Give your bonus a job before it lands.
KeaBudget is the free budget app built for Kiwi life. Put the bonus towards a goal, Christmas or the bills that sneak up, and watch it actually get there.
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NZ Take-home Pay Calculator →Savings Goal Planner →Student Loan Repayment Calculator →Related reading: How much should I save? The 50/30/20 rule for Kiwis. Or see all our free NZ money calculators.