This article explains how to update New Zealand tax rates and thresholds in Jobpac for the 2026/2027 financial year. It is designed for payroll and finance users responsible for maintaining payroll compliance.
Tax table updates are required whenever NZ Treasury Budget changes result in updates to tax rates or income thresholds. It is your responsibility to review and maintain these settings in Jobpac.
Important information before you start
When updating tax rates in Jobpac:
- Always refer to the latest schedules and tax tables published by Inland Revenue New Zealand (IRD).
- Use the PAYE tax tables that apply on the day the PAYE income payment is made to employees.
- The examples in this article assume a payday on or after 1 April 2026.
Note: Tax rates and thresholds can change between financial years. Always confirm current values with IRD before making updates.
NZ tax settings for FY 2026/2027
The following tax components should be reviewed and updated for the 2026/2027 financial year, effective from 1 April 2026, if applicable.
Income tax (PAYE)
Review all PAYE tax codes and thresholds to ensure they align with the latest IRD guidance for the new financial year.
ACC Earners’ Levy
Confirm the current ACC Earners’ Levy rate and the maximum liable earnings threshold as published by IRD and ACC.
Student loan deductions
Review the annual student loan repayment threshold and deduction rates for FY 2026/2027.
ESCT and retirement savings contribution tax
Confirm ESCT income bands and tax rates based on the employee’s projected earnings for the 2026/2027 financial year.
How to update tax tables in Jobpac
All tax rate updates are completed through the Tax Levels menu.
Update PAYE, ESCT and Independent Earner Tax Credit
1. Go to Payroll > Company Information > Tax Levels.
2. Using the latest IR340 information, update the tax levels for:
- SB, S, SH, ST and SA tax codes
- Non‑notified PAYE rate
Note: Ensure the Effective from date at the top of the screen is set to the correct payroll period.
3. Update the ESCT tax levels using the current IRD thresholds.
4. Update the Independent Earner Tax Credit settings if applicable.
5. Click OK to save your changes.
Update student loan thresholds
1. Go to Payroll > Company Information > Tax Levels.
2. Update the Student Loan Threshold using the latest rates from the Student Loan Scheme.
3. Click OK to save your changes.
Update ACC Earners’ Levy
1. Go to Payroll > Company Information > Tax Levels.
2. Update the following fields using the latest published rates:
- ACC Earners’ Levy rate
- Maximum Liable Earnings
- ACC Earners’ Levy for income greater than or equal to the maximum threshold
3. Click OK to save your changes.
Review employee ESCT rates
After updating tax tables, review the ESCT rate for each employee to ensure it reflects their expected earnings for FY 2026/2027.
For detailed instructions, refer to the article How to update ESCT rate for Employees – NZ.
What this allows you to do
Keeping tax tables up to date ensures Jobpac calculates PAYE, student loans, ACC levies and ESCT correctly for the new financial year. This helps you remain compliant and process payroll with confidence from 1 April 2026.
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