ACC Earners Levy 2026/27 Explained
What the ACC earners levy is
The Accident Compensation Corporation (ACC) administers a no-fault compensation scheme that covers New Zealanders and visitors for the costs of personal injury. The earners levy is the employee contribution to this scheme, collected via the PAYE system on wage and salary income.
The 2026/27 rate of 1.75% applies from 1 April 2026. It is charged on "liable earnings", which means ordinary wage and salary income up to the maximum liable earnings of $156,641 per year. Earnings above the cap are not subject to the levy, so anyone earning $156,641 or more pays the same maximum of $2,741.22.
ACC levy amounts at common salary levels
| Annual salary | Annual ACC levy | Monthly equivalent |
|---|---|---|
| $30,000 | $525.00 | $43.75 |
| $60,000 | $1,050.00 | $87.50 |
| $100,000 | $1,750.00 | $145.83 |
| $156,641.00 (max) | $2,741.22 | $228.43 |
| $200,000 | $2,741.22 | $228.43 |
How ACC appears on your payslip
Your employer deducts the ACC levy alongside PAYE income tax from each pay period. On most payslips it appears as a separate line labelled "ACC levy" or "ACC earners levy". The deducted amount uses the annualised earnings for the pay period, which means the weekly or fortnightly levy equals the annual levy divided by 52 or 26 respectively, capped at the applicable period share of the maximum.
Because the levy is withheld by the employer and remitted to Inland Revenue as part of PAYE, you do not need to pay it separately at year-end. Any adjustment (for example if you have multiple jobs) is handled through your end-of-year income tax assessment.
What ACC covers
ACC coverage includes treatment costs (doctors, surgeons, physio), rehabilitation, weekly compensation of 80% of lost earnings during recovery, a lump-sum independence allowance for permanent impairment, and funeral grants. Coverage applies to injuries anywhere in New Zealand, not just at work. In exchange for universal coverage, New Zealand law bars personal injury lawsuits for compensation damages.
See ACC included automatically in the NZ PAYE calculator, alongside income tax, KiwiSaver and optional student loan deductions.
Frequently asked questions
Does the ACC levy cover work injuries only?
No. The ACC earners levy funds cover for all personal injuries in New Zealand, regardless of how or where they occur. This includes injuries at home, during recreation, in a road accident, or at sport. Treatment, rehabilitation, lost earnings compensation and independence allowances are all covered. New Zealand has no right to sue for personal injury damages as a trade-off for this universal coverage.
What happens if I have two jobs and exceed the maximum?
Each employer deducts ACC levy from your earnings in that job up to the cap. If your combined earnings from multiple jobs exceed the maximum liable earnings of $156,641, you may overpay ACC across your employers. You can apply to Inland Revenue for a refund of any excess ACC levy when you file your end-of-year income tax return or through myIR.
Are self-employed people covered by ACC?
Yes, but the levy mechanism differs. Self-employed people pay an ACC Work levy on their self-employment income at an industry-specific rate (based on their classification code), plus the standard earners levy. The earners levy for the self-employed is also collected through the tax system at the same 1.75% rate up to the same maximum liable earnings.
Source: IRD IR340 (April 2026), ACC earners levy rate from 1 April 2026. Last updated 2026-11-04.