California vs New Zealand: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $72,969 in California and $71,142 in New Zealand — $1,827 more per year in California ($152 a month). Single filer, standard deductions.
Updated 2026-10-03 · International figures converted at the exchange rate noted in sources; salaries entered in US dollars. Excludes retirement, health and cost-of-living differences.
Take-home pay at every salary
| Gross salary | California | New Zealand | Difference |
|---|---|---|---|
| $40,000 | $33,252 (16.9% tax) | $31,666 (20.8% tax) | $1,586 |
| $60,000 | $48,037 (19.9% tax) | $44,831 (25.3% tax) | $3,206 |
| $75,000 | $57,952 (22.7% tax) | $54,618 (27.2% tax) | $3,334 |
| $100,000 | $72,969 (27.0% tax) | $71,142 (28.9% tax) | $1,827 |
| $150,000 | $102,280 (31.8% tax) | $101,703 (32.2% tax) | $577 |
| $250,000 | $161,071 (35.6% tax) | $162,703 (34.9% tax) | -$1,632 |
- California total tax rate
- New Zealand total tax rate
Where the money goes at $100,000
- California
- New Zealand
About taxes in California
- California has the highest top income tax rate in the US: 13.3%. That is the 12.3% top bracket plus the 1% Mental Health Services Tax on taxable income over $1 million.
- FTB indexed the 2026 brackets for 3.4% inflation (California CPI, June 2025 to June 2026). For single filers the 9.3% bracket now starts at $75,197.
- The 2026 standard deduction is $5,900 for single filers and $11,800 for joint filers and heads of household, up from $5,706 and $11,412.
- Exemptions are tax credits, not deductions: $158 per person ($316 for joint filers) and $491 per dependent in 2026.
- The SDI withholding rate is 1.3% in 2026. Since 2024 SDI has no wage cap, so it applies to every dollar of wages.
About taxes in New Zealand
- New Zealand has no tax-free allowance: income tax starts at 10.5% on the first $15,600, then 17.5% to $53,500, 30% to $78,100, 33% to $180,000 and 39% above.
- These thresholds have applied since 1 April 2025 and are unchanged for the 2026/27 tax year (1 April 2026 to 31 March 2027).
- The ACC earners' levy for 2026/27 is $1.75 per $100 (1.75%) on earnings up to $156,641, a maximum of $2,741.22 (up from 1.67% in 2025/26).
- KiwiSaver contributions are voluntary for employees and are not deducted here.
- Tax credits such as the independent earner tax credit and Working for Families, and student loan repayments, are not modelled.
Salary needed to keep the same take-home
If you move between California and New Zealand, this is the gross salary (in US dollars) that leaves the same take-home pay after income tax and employee contributions.
| Salary in California | Take-home | Same take-home in New Zealand needs | Difference |
|---|---|---|---|
| $50,000 | $40,732 | $53,718 | +$3,718 (7.4%) |
| $75,000 | $57,952 | $80,110 | +$5,110 (6.8%) |
| $100,000 | $72,969 | $102,895 | +$2,895 (2.9%) |
| $150,000 | $102,280 | $150,946 | +$946 (0.6%) |
Tax on your next $1,000
The marginal rate — the share of a raise that goes to tax and contributions — often matters more than the average rate.
| Salary | California | New Zealand |
|---|---|---|
| $40,000 | 25.0% | 31.8% |
| $75,000 | 38.9% | 34.7% |
| $100,000 | 40.3% | 33.0% |
| $150,000 | 42.3% | 39.0% |
| $250,000 | 45.0% | 39.0% |
What employers pay on top
Employer payroll and social contributions are not deducted from your pay, but they affect what employers can afford to offer.
California (US)
- Employer Social Security (OASDI): 6.20% — Matches the employee: 6.2% on wages up to $184,500 in 2026.
- Employer Medicare: 1.45% — Matches the employee: 1.45% on all wages with no cap (the 0.9% Additional Medicare Tax has no employer match).
- FUTA (federal unemployment): 0.60% — 6.0% on the first $7,000 of each employee’s wages, normally 0.6% after the 5.4% credit for state unemployment tax; states add their own unemployment tax.
New Zealand
- KiwiSaver employer contribution: 3.50% — Compulsory minimum of 3.5% of gross pay for employees who are KiwiSaver members (from 1 April 2026); employer superannuation contribution tax (ESCT) is deducted from it.
Typical pay and minimum wage
| California (US) | New Zealand | |
|---|---|---|
| Median earnings | 1,251 USD ($1,251) — median usual weekly earnings, full-time wage and salary workers (BLS), Q2 2026 | 1,419 NZD ($796) — median weekly earnings from wages and salaries (Stats NZ Household Labour Force Survey), June 2026 quarter |
| Minimum wage | 7.25 USD/hour ($7.25), from 24 July 2009 (federal; many states and cities set higher rates) | 23.95 NZD/hour ($13.44), from 1 April 2026 (adult minimum wage) |
US figures are national; many states and cities set a higher minimum wage.
New Zealand vs California city by city
Take-home pay varies across California with local taxes, and living costs vary even more. On $75,000 you keep $54,618 in New Zealand. California also deducts State Disability Insurance (SDI, incl. Paid Family Leave) (1.30%).
| City | Take-home on $75k | vs New Zealand | Sales tax | Median rent / month | Price level (US = 100) | Take-home in national prices |
|---|---|---|---|---|---|---|
| Los Angeles | $57,952 | +$3,334 | 10.25% | $1,958 | 113.6 | $51,030 |
| San Francisco | $57,952 | +$3,334 | 8.63% | $2,448 | 115.6 | $50,126 |
| San Diego | $57,952 | +$3,334 | 7.75% | $2,414 | 111.9 | $51,795 |
| San Jose | $57,952 | +$3,334 | 10.00% | $2,674 | 110.4 | $52,482 |
- California has the highest top income tax rate in the US: 13.3%. That is the 12.3% top bracket plus the 1% Mental Health Services Tax on taxable income over $1 million.
- FTB indexed the 2026 brackets for 3.4% inflation (California CPI, June 2025 to June 2026). For single filers the 9.3% bracket now starts at $75,197.
- The 2026 standard deduction is $5,900 for single filers and $11,800 for joint filers and heads of household, up from $5,706 and $11,412.
- Exemptions are tax credits, not deductions: $158 per person ($316 for joint filers) and $491 per dependent in 2026.
How the two tax systems differ
| California (US) | New Zealand | |
|---|---|---|
| Tax year | 1 January – 31 December 2026 | 1 April 2026 – 31 March 2027 |
| Filing a tax return | Most workers file an annual Form 1040 even though tax is withheld from pay; filing is required once gross income passes the threshold (e.g. $15,750 for a single filer under 65 for 2025). | Inland Revenue automatically assesses people whose only income is salary, wages or already-taxed interest, so most employees never file a return. |
| Consumption tax | Sales tax (no federal VAT) 0%. There is no national VAT or GST; states and localities levy their own retail sales taxes, and five states have no statewide sales tax. | GST 15%. A single 15% rate on most goods and services, including food. |
| Retirement | Social Security is the mandatory public pension, funded by 6.2% from both employee and employer; workplace plans such as a 401(k) are voluntary, with employee deferrals limited to $24,500 in 2026. | KiwiSaver is voluntary but new employees are automatically enrolled and can opt out; members contribute at least 3.5% of gross pay (4%, 6%, 8% or 10% are also available) and the employer adds at least 3.5%. |
| Healthcare | There is no universal public insurance for working-age adults; most get coverage through an employer plan with premiums shared with the employer, while the 1.45% Medicare tax (matched by employers) funds hospital insurance for people 65 and over. | Public health care is funded from general taxation with no health levy on pay; accident injuries are covered separately by ACC, funded in part by the 1.75% ACC earners’ levy. |
| Capital gains | Long-term gains (assets held over a year) are taxed at 0%, 15% or 20% depending on taxable income, plus 3.8% net investment income tax for higher earners; short-term gains are taxed as ordinary income. | There is no general capital gains tax; profits on residential property sold within 2 years (the bright-line test) and on assets bought to resell are taxed as income. |
Frequently asked questions
Is California or New Zealand better for taxes?
At $100,000, California leaves you $1,827 more per year after income and payroll taxes. The gap narrows at higher incomes ($1,632 at $250,000).
How much is $60,000 after tax in California and New Zealand?
$48,037 in California and $44,831 in New Zealand.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- FTB – Tax News: 2026 Indexing (tax rate schedules, standard deduction, exemption credits)
- EDD – Contribution Rates, Withholding Schedules (2026 SDI rate)
- EDD – 2026 Withholding Schedules, Method B
- Tax Foundation – State and Local Sales Tax Rates, Midyear 2026
- Inland Revenue – Tax rates for individuals
- Inland Revenue – ACC earners' levy rates
- ACC – Levy Guidebook 2026/27
- European Central Bank – euro foreign exchange reference rates
- IRS Topic No. 751, Social Security and Medicare withholding rates
- IRS Topic No. 759, Form 940 – Federal Unemployment (FUTA) Tax Return
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- IRS Topic No. 559, Net Investment Income Tax
- IRS – Who should file
- U.S. Department of Labor – Minimum wage
- BLS – Usual Weekly Earnings of Wage and Salary Workers, Second Quarter 2026
- Inland Revenue – GST
- Inland Revenue – Employer contributions to KiwiSaver and complying funds
- Inland Revenue – What happens at the end of the tax year
- Inland Revenue – The bright-line test
- Employment New Zealand – Minimum wage rates and types
- Stats NZ – Labour market statistics (income): June 2026 quarter
- Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments