Summary of IRD Rates

taxUse-of-money interest – the rates on underpaid and overpaid tax rose on 8 May 2015. The interest rate charged on underpaid tax went from 8.40 percent to 9.21 percent, and the rate for overpaid tax rose from 1.75 percent to 2.63 percent. These movements aim to align the rates with the market interest rates and were last updated in May 2012.

ACC earners levy rate – the ACC earners levy rate for the 31 March 2016 year is 1.45 percent, the same rate as last year. For employees, the maximum earnings on which the levy is payable is $120,070.

FBT rate for low interest loans – the last notified prescribed rate of interest used to calculate fringe benefit tax on low-interest employment-related loans was 6.70 percent for the period 1 October 2014 to 31 December 2014. This was up from the previous rate of 6.13 percent.

Personal marginal tax rates – no changes are proposed to the income tax rates for individuals for the 2016 tax year. The lowest marginal tax rate is 10.5 percent for taxable income up to $14,000, then 17.5 percent up to $48,000, 30 percent to $70,000 and the top rate is 33 percent on income over $70,000.

Published Winter 2015.

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