Monthly Income after Taxes

[emaino]

I have looked around but haven´t found anything monthly related...

If I have a salary of NZ$100k/year I will need to pay NZ$30.270,00 in taxes - NZ$69.730,00 left yearly in my pocket.

My question is: if I want to know how much I´ll be bringing home per month do I need to divide this amount by 12 months? That simple?

NZ$100k/year = NZ$5.810,83/month after taxes?

Thanks for your help!

[beanbeanz]

Yes, just divide by 12 to get your monthly income. However, most employers pay salaries out fortnightly.

[emaino]

Thanks! Now I'll be able to create my monthly budget...

[victoria24]

is tax taken at source or do you fill out an annual return?

[IanW99]

is tax taken at source or do you fill out an annual return?

NZ has PAYE like the UK, so the employer takes out the tax at source.

You may however have to also fill out an annual tax return if you have other sources of income.

Ian

[talisker]

NZ has PAYE like the UK, so the employer takes out the tax at source.

You may however have to also fill out an annual tax return if you have other sources of income.

Ian

or if you arrive from overseas and start working part way through the NZ tax year. PAYE in NZ is calculated based on only the current month's pay (i.e. each month you pay 1/12 of the tax would pay for the year if you were earning that amount for the full 12 months), whereas in the UK it's a cumulative calculation (i.e. each month you pay what you need to pay so that you've paid the correct tax for the year to date based on what you've earned to date). So if you come to the UK halfway through a tax year, your PAYE adjusts automatically so that you will pay the correct tax overall, but in NZ you'll overpay. Therefore - tax return needed after the tax year end, and you should get a handy refund.

[DMcG]

You're in the top tax bracket - so you need to ensure that any bank accounts that give you interest are also set to pay tax at the highest amount

Otherwise, the IRD will send you a bill at the end of the tax year for underpaid tax

Dougie

[CJ22]

The bank will ask you what your salary is, so they can set the interest tax at the appropriate level.