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Free Redundancy Lump Sum Tax Calculator for New Zealanders

Redundancy and other extra pays are taxed using the marginal rate based on annualised income (regular salary plus the lump sum), not at a flat rate. This estimator applies that rule on 2026/27 brackets.

Your redundancy

$80,000
$
$20k$300k
$40,000
$
$1k$500k
Net lump sum
$26,800
After PAYE on the redundancy

Based on a $80,000 salary and a $40,000 redundancy.

Tax on lump sum$13,200
Effective rate on lump33.0%
Top bracket the lump reaches33%
Net lump sum$26,800

About our Redundancy Lump Sum Tax Calculator

Disclaimer: This calculator is for information only and does not constitute financial advice. Real-world figures may differ due to fees, rounding, rate changes, and policy specifics. Always confirm figures with the relevant provider before signing anything.