Bonus & Commission Tax
Tax on a bonus, commission or extra-pay using IR340.
NZ$
NZ$
Net bonus
$3,350.00
Tax on bonus: $1,650.00 (33.0% effective)
| Bonus | $5,000.00 |
|---|---|
| PAYE on bonus | −$1,650.00 |
| Net bonus | $3,350.00 |
About this calculator
Calculates the tax payable on an extra-pay (bonus, commission, back-pay) using IRD's IR340 extra-pay method: PAYE on regular + bonus minus PAYE on regular alone.
- The bonus is taxed at your top marginal rate(s) for the year, not a flat rate.
- For a $5,000 bonus on top of an $80,000 salary, all $5,000 falls in the 33% bracket — net is roughly $3,350.
- ACC earner levy (1.60%) also applies to the bonus, and KiwiSaver if you're contributing.
Frequently asked questions
Why does the bonus seem heavily taxed?
It isn't — it's simply taxed at the marginal rate that applies to the income band the bonus pushes you into. There's no special "bonus tax".
Does ACC apply to the bonus?
Yes — bonuses count as liable earnings up to the annual cap of $142,283.
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Calculator NZ provides general information only. For decisions with significant financial, medical or legal consequence please consult a qualified professional.