Tax relief
Tax relief in Budget 2024 will let hard-working New Zealanders keep more of what they earn. Households with children will benefit by $78 per fortnight on average. Overall, around 1.9 million households will benefit by $60 per fortnight on average. The tax changes apply from 31 July 2024, apart from FamilyBoost which applies from 1 July 2024.
- Increasing personal income tax thresholds reduces income tax for people earning more than $14,000 per annum. This reduction in personal income tax is the first since 2010.
| Current brackets $ | New brackets $ | Rate |
|---|---|---|
| 0 - 14,000 | 0 - 15,600 | 10.5% |
| 14,001 - 48,000 | 15,601 - 53,500 | 17.5% |
| 48,001 - 70,000 | 53,501 - 78,100 | 30% |
| 70,001 - 180,000 | 78,101 - 180,000 | 33% |
| 180,001+ | No change | 39% |
- Extending the income limit for the independent earner tax credit to $70,000 per annum means an additional 420,000 additional people (not receiving Working for Families, main benefits or Superannuation) are eligible for up to $20 per fortnight.
- Increasing the in-work tax credit means an estimated 160,000 low-to-middle-income working families will get up to $50 extra per fortnight.
- The new FamilyBoost payment will help an estimated 100,000 families with the costs of early childhood education, by up to $150 per fortnight.
For information on how the tax package will benefit you, visit the tax calculator at budget.govt.nz/taxcalculator