Will your income tax change after the election? What each party is promising

What you pay now

Income tax in New Zealand is charged in steps. You pay 10.5% on the first $15,600 you earn, 17.5% on the next slice up to $53,500, 30% up to $78,100, 33% up to $180,000, and 39% on anything above that.

Each rate applies only to the income inside its step. Earning one dollar over a threshold does not push your whole income into the higher rate. Companies pay a flat 28%.

Parties promising no new taxes

National is campaigning on keeping tax low, with no new taxes and a surplus by 2028/29 reached through spending restraint and growth.

ACT goes further on the same side. It wants flatter income tax rates and a faster path to surplus through spending cuts, including merging 43 government departments into 19.

NZ First wants the company rate cut from 28% to 20% for firms with turnover under $30 million, which covers about 99% of companies. It puts the cost at around $1 billion a year and says the cut would pay for itself through investment and jobs.

Parties that would cut some taxes by raising others

The Greens promise an income tax cut for 96% of people, paid for by a wealth tax, a tax on large inheritances and a higher 33% company rate for the largest corporates. Small businesses would stay on 28%.

Te Pāti Māori wants the wealthiest to pay more. Its most recent detailed tax plan paired a wealth tax with tax cuts for most earners.

Labour has one published tax change: a 28% capital gains tax on investment property, with the money ring-fenced for health. It has ruled out a wealth tax this term.

How to read a tax promise

A tax cut has to be paid for by one of three things: spending less, taxing something else, or borrowing. It is worth asking of any promise which of the three it relies on.

The parties ruling out new taxes are choosing to spend less. The parties proposing new taxes are choosing to tax wealth or property gains so they can spend more on services or cut tax on wages. Neither is free. Our guide to every new tax proposed for 2026 sets out who would pay each one.

If you want to know which side you land on, the NZVoteCheck quiz asks about new taxes, spending and small business tax directly. The home page explains how it works.