The first round of tax cuts under the National Government comes into effect on Wednesday and will apply to those earning more than $42,000 a year.
Increases in take home pay will range from about $10 a week up to $24 for those on $100,000 a year.
A new $10-a-week tax credit also comes into effect for people earning between $24,000 and $44,000 and who are not receiving any other entitlement.
However, a rise in ACC levies introduced at the same time will mean employees on the average wage of $48,500 a year will pay $2.80 more a week.
Finance Minister Bill English says the tax cuts will put cash in people's pockets in the short term, and in the longer term move the country towards a tax system which has stronger incentives for people to get ahead.
