Tax in New Zealand

Who is the tax authority?

Inland Revenue — Te Tari Taake (IRD) — is New Zealand's sole national tax authority. It administers the Income Tax Act 2007, GST Act 1985, Tax Administration Act 1994, and allied statutes covering KiwiSaver, child support, student loan repayment, Working for Families credits, and excise duties.

The tax structure is purely national. There is no state-level or regional income tax layer in New Zealand.

Chartered Accountants Australia and New Zealand (CA ANZ) regulates the principal credentialed accounting profession. Tax agents are separately registered with IRD under the Tax Administration (Registration of Tax Agents) Regulations, and they unlock the agent extension-of-time scheme for clients.

What is the tax year and when are returns due?

New Zealand's income year runs 1 April to 31 March — a financial year that differs from the calendar year used by the US, Canada, and most of continental Europe. The 2025-26 income year covers 1 April 2025 to 31 March 2026.

Individuals who must file an IR3 return have a 7 July deadline after year-end. Filers on the IRD-listed tax-agent extension-of-time scheme have until 31 March of the year after year-end.

Most New Zealand individuals do not file an IR3 at all. IRD operates an automated income-tax assessment for people whose income is fully reported by payers (PAYE, interest, dividends), issuing refunds automatically.

Who counts as a New Zealand tax resident?

Under section YD 1 of the Income Tax Act 2007, an individual becomes a New Zealand tax resident if either rule applies:

• 183-day test: present in New Zealand for more than 183 days in any 12-month period — residency starts from the first of those days
• Permanent place of abode (PPOA) test: has a permanent place of abode in New Zealand, regardless of time spent abroad

Cessation of residency requires both conditions at once: 325 or more days absent from New Zealand in any 12-month period AND no permanent place of abode remaining in New Zealand.

Transitional Resident Status under section HR 8 grants a four-year exemption from New Zealand tax on most foreign-source income for new residents who have not been New Zealand tax residents in the prior 10 years. Residents pay tax on worldwide income; non-residents pay tax only on New Zealand-source income.

What are the personal income tax rates?

New Zealand uses a five-bracket graduated structure with no tax-free threshold. The rates below apply from 31 July 2024 under the Coalition Government's tax reduction package.

On top of income tax, earners pay the ACC Earners' Levy — a work-injury levy collected via the same PAYE mechanism. The 2024-25 rate is approximately 1.39% on income up to NZD 142,283.

Deep-dive: see self-employed tax in New Zealand for how ACC and IETC interact for freelancers and contractors.

How does corporate tax work?

New Zealand's corporate income tax rate is a flat 28% on taxable income for resident companies and branches of foreign companies on New Zealand-source income. There is no general small-business rate — but Look-Through Company (LTC) and partnership pass-through structures offer alternatives for small operators.

New Zealand's imputation system eliminates economic double taxation at the corporate-shareholder level. Companies attach imputation credits (representing company tax already paid) to dividends; resident shareholders credit these against their personal income tax liability. Trans-Tasman imputation under the Australia-NZ treaty allows certain Australian companies to attach Australian franking credits to dividends paid to NZ shareholders.

New Zealand implemented the OECD Pillar Two Global Anti-Base Erosion (GloBE) rules via the Taxation (Annual Rates for 2024-25, Emergency Response, and Remedial Matters) Act. The Income Inclusion Rule and Domestic Income Inclusion Rule apply for fiscal years starting on or after 1 January 2025 for groups with consolidated revenue above EUR 750 million. Thin-capitalisation rules cap interest deductibility at a 60% debt-to-asset safe harbour for inbound investments and 75% for outbound.

What is GST and how does it work?

Goods and Services Tax (GST) at 15% is New Zealand's VAT-equivalent. It is widely regarded as the cleanest broad-base VAT system among OECD members — no reduced rate, no exempt-with-credit category, and very few exceptions.

GST registration becomes mandatory once annual taxable supplies exceed NZD 60,000 in any 12-month period. Below that, registration is voluntary.

Cross-border B2C supplies of digital services and remote services by non-resident vendors to NZ consumers entered scope in 2016. Low-value imported goods under NZD 1,000 — collected at point of sale by the offshore vendor — joined the regime in 2019.

Deep-dive: see GST in New Zealand for the B2C and non-resident vendor obligations in detail.

How are cryptoassets taxed?

IRD published its cryptoasset guidance in QB 23/05 (2023), treating cryptocurrency as property for tax purposes — not currency. Disposals are taxable when the cryptoasset was acquired with a dominant purpose of disposal, a facts-and-circumstances test that catches most active crypto trading.

Deep-dive: see crypto taxation in New Zealand for how QB 23/05 applies in practice to trading, staking, and DeFi.

What is the treaty network?

New Zealand maintains approximately 40 comprehensive Double Taxation Agreements. Most follow the OECD Model with NZ-specific reservations on source-taxation rights for technical services. New Zealand signed and ratified the OECD Multilateral Instrument; the MLI's Principal Purpose Test applies to many NZ DTAs from 2019.

Foreign tax-credit relief is claimed under sections LJ 1 to LJ 7 of the Income Tax Act 2007. The CFC regime (sections EX 1 to EX 26) and the Foreign Investment Fund (FIF) regime (sections EX 28 to EX 73) operate alongside the treaty network as anti-deferral mechanisms.

Deep-dive: see tax treaty relief in New Zealand for the bilateral rate schedules and MLI modifications.

Where does New Zealand sit in the Anglo-OECD cohort?

New Zealand anchors the Anglo OECD Common-Law cohort alongside Australia, Canada, and the UK — all share progressive PIT, broad-base VAT, imputation-style dividend relief, and OECD treaty network membership.

Common penalties and pitfalls

Foreign companies and individuals regularly trip on a set of recurring traps when operating in or moving to New Zealand.

When should you talk to a Chartered Accountant or registered tax agent?

Some situations are straightforward enough to handle through myIR. Others get complicated quickly:

• Your income crosses the 33% or 39% bracket (above NZD 78,100 or NZD 180,000)
• You are arriving in New Zealand and want to preserve Transitional Resident Status for the four-year foreign-income exemption
• You hold offshore investments above NZD 50,000 cost basis — the FIF regime requires annual attributed-income calculations
• You are selling residential property and need to assess whether the brightline test applies
• You are setting up a company and considering Look-Through Company election
• Your business is approaching the NZD 60,000 GST registration threshold
• You received an IRD notice of assessment or shortfall penalty
• You are departing New Zealand and want to confirm when tax residency ceases

CA ANZ-registered Chartered Accountants and IRD-registered tax agents appear in the directory below.

This page is general information. It is not personal guidance for your situation. Tax rules change. Always check current figures on the IRD website (ird.govt.nz) or with a licensed New Zealand practitioner before filing.