Canada vs New Zealand: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $71,132 in Canada and $71,142 in New Zealand — $10 more per year in New Zealand ($1 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 | Canada | New Zealand | Difference |
|---|---|---|---|
| $40,000 | $31,484 (21.3% tax) | $31,666 (20.8% tax) | -$182 |
| $60,000 | $44,460 (25.9% tax) | $44,831 (25.3% tax) | -$371 |
| $75,000 | $55,012 (26.7% tax) | $54,618 (27.2% tax) | $394 |
| $100,000 | $71,132 (28.9% tax) | $71,142 (28.9% tax) | -$10 |
| $150,000 | $101,428 (32.4% tax) | $101,703 (32.2% tax) | -$275 |
| $250,000 | $156,575 (37.4% tax) | $162,703 (34.9% tax) | -$6,129 |
- Canada total tax rate
- New Zealand total tax rate
Where the money goes at $100,000
- Canada
- New Zealand
About taxes in Canada
- Federal 2026 rates: 14% up to $58,523, 20.5% to $117,045, 26% to $181,440, 29% to $258,482 and 33% above; the lowest rate was cut from 15% to 14% from 1 July 2025.
- Ontario 2026 rates: 5.05% up to $53,891, 9.15% to $107,785, 11.16% to $150,000, 12.16% to $220,000 and 13.16% above.
- The 2026 federal basic personal amount is $16,452 (reduced to $14,829 for net income above $258,482), and the Ontario basic personal amount is $12,989; both are non-refundable credits at the lowest rate.
- CPP 2026: 5.95% employee contribution on earnings between the $3,500 basic exemption and the $74,600 YMPE (maximum $4,230.45), plus CPP2 at 4% between $74,600 and $85,000 (maximum $416).
- EI 2026: employees outside Quebec pay $1.63 per $100 of insurable earnings up to $68,900, a maximum premium of $1,123.07.
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 Canada 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 Canada | Take-home | Same take-home in New Zealand needs | Difference |
|---|---|---|---|
| $50,000 | $37,859 | $49,315 | −$685 (-1.4%) |
| $75,000 | $55,012 | $75,604 | +$604 (0.8%) |
| $100,000 | $71,132 | $99,985 | −$15 (-0.0%) |
| $150,000 | $101,428 | $149,549 | −$451 (-0.3%) |
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 | Canada | New Zealand |
|---|---|---|
| $40,000 | 30.7% | 31.8% |
| $75,000 | 30.3% | 34.7% |
| $100,000 | 37.2% | 33.0% |
| $150,000 | 41.2% | 39.0% |
| $250,000 | 46.2% | 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.
Canada
- Employer CPP: 5.95% — Matches the employee: 5.95% on earnings between $3,500 and $74,600 in 2026.
- Employer CPP2: 4.00% — Matches the employee: 4% on earnings between $74,600 and $85,000 in 2026.
- Employer EI premium: 2.28% — 1.4 times the employee rate (2.282%) on insurable earnings up to $68,900, a maximum of $1,572.30 per employee in 2026 (outside Quebec).
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
| Canada | New Zealand | |
|---|---|---|
| Median earnings | 1,320 CAD ($927) — median weekly wage, full-time employees (Statistics Canada Labour Force Survey), 2025 | 1,419 NZD ($796) — median weekly earnings from wages and salaries (Stats NZ Household Labour Force Survey), June 2026 quarter |
| Minimum wage | 18.15 CAD/hour ($12.75), from 1 April 2026 (federal rate for federally regulated sectors; provinces set their own) | 23.95 NZD/hour ($13.44), from 1 April 2026 (adult minimum wage) |
How the two tax systems differ
| Canada | New Zealand | |
|---|---|---|
| Tax year | 1 January – 31 December 2026 | 1 April 2026 – 31 March 2027 |
| Filing a tax return | Almost everyone files an annual T1 return even when tax is withheld at source, to claim credits and benefits; the deadline is 30 April (15 June if self-employed). | Inland Revenue automatically assesses people whose only income is salary, wages or already-taxed interest, so most employees never file a return. |
| Consumption tax | GST/HST 5% (reduced: HST of 13% (Ontario), 14% (Nova Scotia) or 15% (NB, NL, PEI) replaces the 5% GST in harmonized provinces). BC, Manitoba, Saskatchewan and Quebec add a separate provincial sales tax (QST 9.975% in Quebec). | GST 15%. A single 15% rate on most goods and services, including food. |
| Retirement | The Canada Pension Plan is mandatory: employees and employers each pay 5.95% on earnings between $3,500 and $74,600 plus 4% CPP2 up to $85,000 (Quebec runs the separate QPP). Workplace pensions and RRSPs are voluntary. | 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 | Health care is universal and funded through taxes; provinces run their own insurance plans under the Canada Health Act, so medically necessary hospital and physician services carry no charge. Some provinces add a premium through the tax system, such as the Ontario Health Premium (up to $900). | 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 | One-half of a capital gain is included in taxable income and taxed at your marginal rate. | 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 Canada or New Zealand better for taxes?
At $100,000, New Zealand leaves you $10 more per year after income and payroll taxes. The gap widens at higher incomes ($6,129 at $250,000).
How much is $60,000 after tax in Canada and New Zealand?
$44,460 in Canada and $44,831 in New Zealand.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- CRA – Tax rates and income brackets for 2026
- CRA – Indexation of personal income tax and benefit amounts
- CRA – T4032-ON Payroll Deductions Tables, January 2026
- CRA – T4127 Payroll Deductions Formulas, January 2026
- CRA – CPP contribution rates, maximums and exemptions
- CRA – EI premium rates and maximums
- European Central Bank – euro foreign exchange reference rates
- Inland Revenue – Tax rates for individuals
- Inland Revenue – ACC earners' levy rates
- ACC – Levy Guidebook 2026/27
- CRA – GST/HST calculator and rates by province
- CRA – T4037 Capital Gains
- CRA – Important dates for individuals
- Health Canada – Canada’s health care system
- Government of Canada – Pay and minimum wage (federal labour standards)
- Statistics Canada – Table 14-10-0064-01 Employee wages by industry, annual
- 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
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500