# income tax



## qiubuo (Sep 20, 2011)

I have been using the NZ govt tools to calculate how much income tax we will pay in NZ, and it's so different from what I'm used to that I am a bit confused. If I understand correctly, everyone files as an individual and there are no exemptions? So if you are an individual living alone you pay the same income tax as if you are the only person working in a family of 4 (2 adults, 2 kids)?


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## escapedtonz (Apr 6, 2012)

Correct.
Tax is paid as an individual on every cent you earn.
There are no exemptions, no married couples allowance, no tax free allowance.
Easy.

Additional to this you also have to contribute 1.7% in ACC contributions upto a total of $1700 ish per year...sorry don't know the exact figure.
If you are coming as a Resident you also have the option of Kiwisaver which will cost you an extra 2%, 4% or 8% of your salary.


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