ACC earners' levy explained

Last reviewed October 23, 2026

What is it for?

ACC (the Accident Compensation Corporation) helps pay for treatment and lost income when you’re injured in New Zealand, whoever was at fault. It’s paid for by several levies:

The earners’ levy, which you pay on your earnings, covers injuries outside work, such as playing sport, at home or on holiday.
The work levy, which your employer pays, covers injuries at work.
Levies on petrol and vehicle licensing cover injuries on the road.

If an injury stops you working, ACC usually pays 80% of your earnings as weekly compensation. It doesn’t cover illness: see insurance basics.

How much do I pay?

You pay a percentage of your earnings, up to a maximum:

Tax year	Rate	Charged on earnings up to	Most you can pay
2025–26	1.67%	$152,790	$2,551.59
2026–27	1.75%	$156,641	$2,741.22
2027–28 (from 1 April 2027)	1.83%	$160,244	$2,932.47

The rate includes GST.

ACC earners' levy by yearly earnings 1.75% of earnings up to $156,641, 2026–27

Earnings over $156,641 pay no extra levy, so the most anyone pays is $2,741.22 a year.

Examples for 2026–27:

Salary	ACC earners’ levy a year
$50,000	$875
$100,000	$1,750
$200,000	$2,741.22 (the maximum)

What counts as earnings?

The levy is charged on income from work: wages, salary, bonuses, holiday pay and self-employed profit. It’s worked out on your pay before KiwiSaver comes out. Interest, dividends and rent aren’t charged.

How is it paid?

Your employer takes it from your pay as part of PAYE, together with your income tax. It doesn’t appear as a separate amount on IRD’s PAYE tables, and many payslips don’t show it on its own line. Our calculators show it separately, so you can see what it costs.

On a second job, the secondary tax codes include the levy too: the S code’s 19.25% is 17.5% tax plus 1.75%. If your earnings from all your jobs go over $156,641, you can end up paying more than the maximum during the year. IRD’s end-of-year assessment refunds the extra.

If you’re self-employed, nothing is taken during the year. ACC works out your levies from your tax return and invoices you afterwards, so set money aside for them. See side hustle tax.

See it in your pay

Our PAYE calculator shows the ACC earners’ levy next to your income tax. For all the rates, see New Zealand tax rates 2026–27.

Frequently asked questions

How much is the ACC earners’ levy in 2026–27?

1.75% of your earnings, which is $1.75 for every $100, on earnings up to $156,641. The most anyone pays is $2,741.22 for the year.

Is the ACC levy included in my PAYE?

Yes. Your employer takes it with your income tax as part of PAYE, so you don’t pay it separately. IRD’s PAYE tables include it, which is why many payslips don’t show it on its own line.

Do self-employed people pay the ACC earners’ levy?

Yes. ACC works it out from the income in your tax return and invoices you after the tax year. You also pay a work levy for your industry and the Working Safer levy.

Is the ACC levy going up in 2027?

Yes. From 1 April 2027 it rises to 1.83% on earnings up to $160,244, so the most anyone pays rises to $2,932.47.

Do I pay the levy on interest or rental income?

No. The earners’ levy is charged on earnings from work, such as wages, salary and self-employed income, not on investment income like interest, dividends or rent.