Author Topic: What the what?!? New Zealand tax rate  (Read 392 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.
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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%).

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.
http://forum.mrmoneymustache.com/journals/writing-myself-a-happy-ending-hopefully/

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