New Zealand Tax Changes 2025/2026
Note that the listed tax changes are installed on upgrade to MicrOpay Evo version 9.4 but do not take effect until Change Tax Year is run to roll the payroll database over into the 2025/2026 tax year.
The MicrOpay Evo version 9.4 release includes changes to the ACC Earnings Levy and ESCT Threshold changes for the 2025/2026 financial year. From 1 April 2025:
ACC Earnings Levy
The Annual Levy Threshold will increase from $142 283 to $152 790.
The Fixed Amount will increase from $2 276.52 to $2 551.59.
The Levy Rate (per $100 of liable earnings up to $152 790 annual income) will increase from $1.60 to $1.67.
Lump Sum Income threshold changes
Lump Sum Income thresholds for 2025/2026
Tax Threshold | Tax Rate |
$0 - $15 600 | 10.5% |
$15 601 - $53 500 | 17.5% |
$53 501 - $78 100 | 30% |
$78 101 - $180 000 | 33% |
$180 001 and above | 39% |
ESCT threshold changes
The table below lists updated ESCT threshold amounts, effective from the start of the 2025/2026 financial year. The ESCT Salary Threshold and ESCT Rate are displayed per employee, in Super Funds defined for the Employee in their Superannuation Details.
Tax Threshold | Tax Rate |
$0 - $18 270 | 10.5% |
$18 271 - $64 200 | 17.5% |
$64 201 - $93 720 | 30% |
$93 721 - $216 000 | 33% |
$216 001 and above | 39% |
Important: This release also includes a change to tax calculation on extra pay processed in a New Zealand termination pay, effective from 1 April. Refer to the articles below for more information:
Review this article to download the New Zealand 2024-2025 End of Year quick reference guide and training details if required:
MicrOpay Payroll Hosted Online customers
For our Payroll Hosted Online customers we upgraded you to v9.4 on 28 March 2025. Review the article March 2025 -Access MicrOpay Evo V9.4 for a complete overview of what is included in this release.
MicrOpay Payroll Desktop customers
For our Desktop customers the v9.4 upgrade and release notes are now available in March 2025 -Access MicrOpay Evo V9.4.