Salary vs Dividend Calculator
Close-company shareholder: take pay as salary or as dividend?
NZ$
Better path
Salary
Net advantage $6,803.47
| Salary path — gross | $150,000.00 |
|---|---|
| Salary path — PAYE | −$40,420.00 |
| Salary path — ACC levy | −$2,276.53 |
| Salary path — net | $107,303.47 |
| Dividend — company tax (28%) | −$42,000.00 |
| Dividend — top-up tax | −$7,500.00 |
| Dividend — net | $100,500.00 |
About this calculator
For a close-company owner-employee, profit can be drawn as salary (PAYE + ACC + KiwiSaver) or as a dividend (28% company tax then dividend with imputation credit). The calculator shows the take-home of each path on the same dollar of profit.
- Imputation credit means dividend tax already paid by the company is creditable to the shareholder.
- Salary attracts ACC earner levy (1.6%) up to ~$142k; dividends do not.
- Salary uses progressive PAYE; dividend uses your top marginal rate (33% or 39%).
Frequently asked questions
Are there other considerations?
Yes — KiwiSaver employer match, ACC cover continuity, FBT on benefits, the 39% top tier and Income Insurance Scheme (when enacted) all push the calculus around.
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Calculator NZ provides general information only. For decisions with significant financial, medical or legal consequence please consult a qualified professional.