2026 IRD Updates

2026 IRD Updates

 

2026 Thresholds and Rates

Inland Revenue and government agencies have released updated thresholds and key compliance changes taking effect from early 2026. Below is a summary of the new rates to help you prepare for the upcoming financial year.

ACC Earners’ Levy (2025/26 Income Year)

  • Earners’ levy rate: 1.67% from 1 April 2026 (up from 1.60% currently)
  • Maximum liable income: $152,790 from 1 April 2026 (up from $142.283 currently)

Student Loan Repayments

  • Repayment threshold: $24,128 per year 
  • Repayment rate: 12% on income above the threshold

KiwiSaver

  • The maximum government contribution dropped from $521.43 to $260.72 from 1 July 2025. If you earn more than $180,000 of taxable income a year, you no longer qualify for the government contribution from 1 July 2025.
  • Employee default contribution options are currently: 3%, 4%, 6%, 8%, 10% and the minimum employer contribution is currently 3%.
  • From 1 April 2026 the default rates for both employers and employees will increase to 3.5%, and both default rates will rise again to 4% (from 3.5%) from 1 Apri 2028.

Minimum Wage Rates

  • Adult minimum wage is currently $23.50 per hour, to increase to $24.50 per hour from 1 April 2026
  • Starting-out / Training wage will remain at 80% of the adult minimum wage (i.e. $19.60 per hour from 1 April 2026.

PAYE Tax Rates

  • No new changes to income tax brackets have been announced for 2026.

Inland Revenue has stepped up its approach to overdue tax with faster follow-ups, closer monitoring, and earlier enforcement for businesses that fall behind.

Part of this shift comes from improved technology and automation, which have allowed them to detect overdue balances sooner and respond more consistently.

Carrying tax debt? Act early.

Inland Revenue is far more willing to work with businesses that make contact before debt snowballs. They encourage businesses to clear overdue balances or set up instalment plans straightaway.

Prevention is better than cure

Now is a great time to consider your cashflow for the year ahead, factoring in seasonal dips, late invoices, and potential expenses. But you don’t have to go it alone. If you’re dealing with debt – or trying to avoid it – our accountants and financial advisors are here to help