NZ Redundancy Payout Tax Calculator
Estimate PAYE tax and net payment from a New Zealand redundancy payout using IRD end-of-employment lump sum rules.
Regional Rule Context
New Zealand Rates and Rules
Estimates PAYE on a redundancy payment using the end-of-employment lump sum method. Redundancy payments are taxed as lump sums and are not subject to ACC earners levy or KiwiSaver employee deductions.
Enter Values
Gross normal pay from the last two pay periods, excluding the redundancy payment
Result
Enter values above and click Calculate to see your result.
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This calculator uses the last two pay periods annualised by pay frequency, adds the redundancy payment, then applies the matching lump sum PAYE rate excluding ACC.
Disclaimer: This calculator uses publicly available rules effective as of Apr 1, 2025 (version 1.0). Results are for informational purposes only. Always verify with official sources or a qualified professional. Last reviewed: Apr 18, 2026.
Formula
IRD end-of-employment lump sum rules annualise the employee's last two pay periods, add the redundancy payment, then apply the matching lump sum PAYE rate. Redundancy payments exclude ACC earners levy.
New Zealand FAQs
Are redundancy payments taxable in New Zealand?
Yes. A redundancy payment is taxable income and employers should deduct PAYE before paying it.
Does ACC apply to redundancy payments?
No. IRD states redundancy payments are taxed at the lump sum rate and ACC earners levy does not apply.
Does KiwiSaver apply to redundancy payments?
No. IRD guidance says KiwiSaver contributions are not deducted from redundancy payments.
Can the final tax differ from this estimate?
Yes. IRD squares up your income tax after the tax year, so you may receive a refund or have more to pay depending on total annual income.
Is it possible to embed the NZ Redundancy Payout Tax Calculator on another website?
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