Author Topic: What the what?!? New Zealand tax rate  (Read 575 times)

Stachey

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What the what?!? New Zealand tax rate
« on: November 21, 2017, 11:04:12 AM »
I just saw a thing on the interweb about the most and the least taxed nations in the world.

Now I know everything I read on the interweb is true (ha!) so I just want to clarify:
It said the New Zealand tax rate is 17% !!!
Is this true?

The rate it had for Canada was 30% and 48% for France.

GuitarStv

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Re: What the what?!? New Zealand tax rate
« Reply #1 on: November 21, 2017, 11:16:54 AM »
I just saw a thing on the interweb about the most and the least taxed nations in the world.

Now I know everything I read on the interweb is true (ha!) so I just want to clarify:
It said the New Zealand tax rate is 17% !!!
Is this true?

The rate it had for Canada was 30% and 48% for France.

How did it calculate those rates?  We pay income tax (both federal 15 to 33% and provincial 5-13% depending on the amount you're making) and sales tax (provincial - 8% and federal - 5%).
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terran

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Re: What the what?!? New Zealand tax rate
« Reply #2 on: November 21, 2017, 11:29:56 AM »
Maybe that's the effective rate on some kind of average income? Or the

See: http://www.ird.govt.nz/calculators/keyword/taxrates/calculator-tax-rate.html

From running through that calculator I get

Quote
Income up to $14000, taxed at 10.5%
Income over $14000 and up to $48000, taxed at 17.5%
Income over $48000 and up to $70000, taxed at 30%
Remaining income over $70000, taxed at 33%

For context, it looks like:
NZ$14000 = US$9567.04
NZ$48000 = US$32801.28
NZ$70000 = US$47835.20

So they have a lower top bracket than we do, but it kicks in at a much lower income, and they tax from the first dollar. I don't know if they have a payroll tax (like FICA in the US). Between employee and employer we pay 15.3% starting with the first dollar up to around $120k in FICA in the US, so unless they have an additional payroll tax, we actually pay even more on that first US$9500 than they do despite our deductions and exemptions.

It would take more research, but I see nothing about filing married, so I suspect every income earner is taxed separately based on their own income, so no advantages for lower income spouses as we have in the US.

I would be curious to learn what the total tax burden of a median family income including payroll taxes is in each country, either the ~$60k US median, or whatever the median for the country is. Even more interesting would be if the cost of health insurance in the US could be included as a form of tax. I suspect if you figured it all in the notoriously "low tax" US system wouldn't look so good any more.


Stachey

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Re: What the what?!? New Zealand tax rate
« Reply #3 on: November 21, 2017, 11:56:23 AM »
It's apparently based on a OECD report called "Taxing Wages 2017"

https://www.msn.com/en-ca/money/topstories/countries-where-you-pay-the-most-and-least-tax/ss-BBF6HC5?li=AAggNb9&ocid=mailsignout#image=21

I couldn't see the US on the list.  I figured it would be one of the least taxed nations but not the case.
Countries like Canada and Ireland and New Zealand and Chile were on the least taxed side.