[Sam'n'Kelv]

Based on an average earning of $60,000 I've calculated that I will pay the equivalent of £2116 more in income tax in the NZ than on the equivalent sum earned in the UK. This is taking into account the 1.3% ACC rate.

However, once I take UK National Insurance into account, the difference is reduced to only £470 more in NZ. Far less terrifying.

I'm rather hoping that NZ does not have the equivalent of National Insurance since this will make the difference between the tax rates of the two countries more easily digestible - especially when you take the reduced VAT rate into account. I've searched the NZ Inland Revenue site, but cannot find any information on an equivalent to National Insurance. Is there such a thing, or is Income Tax + ACC the only tax on earnings?

Many thanks.

[Rabbit]

or is Income Tax + ACC the only tax on earnings?


As far as I am aware.

Also don't forget petrol is only 51p a litre here, and a packet of cigs £3.57

Council tax can be alot less, or about the same depending on where you live.

That said, salaries are lower, and pensions are lower, interest on morgages are higher, houses are cheaper, doctors and dentists more expensive etc - so it is swings and round abouts on the money front and there are many perspectives to consider, not just direct taxes.

[Trigirl]

there is no NI or its equivalent over here. ACC and income tax are the only direct taxes. i made it $800 (£285) difference at $60k so a bit less than you did.

but you should be aware that $60k is basically the point at which the difference is least, above that NZ higher rate tax kicks in - whereas higher rate doesn't kick in over in the UK till about £37k, so roughly $100k. so by the time you are at $100k the difference in actual tax paid between the two systems is something like $3500 or about £1250.