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NZ Tax Guide 2026 — Income Tax, GST, KiwiSaver & More

Updated

New Zealand’s tax system covers income tax (PAYE for employees, IR3 for self-employed), GST, KiwiSaver, investment taxes, and more. This hub links to every tax guide on MoneyBalance — use the sections below to find exactly what you need.

How NZ Tax Works

For most New Zealand employees, tax is largely automatic. Your employer deducts PAYE (Pay As You Earn) income tax from every pay packet using your tax code, and IRD automatically issues a tax assessment each year that factors in employment income, bank interest, dividends, and other income reported by third parties. Many salaried Kiwis receive a small refund — or have a small amount to pay — without ever filing a return themselves.

Automatic assessment only works, however, if all your income is reported through PAYE or by third parties. If you earn income from self-employment, rental properties, overseas investments, or significant side income, you need to file an IR3 tax return and manage your own obligations — including provisional tax payments if your residual income tax (RIT) exceeds $5,000 in a year.

New Zealand does not have a general capital gains tax, but the bright-line test applies to most residential property sold within 10 years of purchase (2 years for new builds). Property sold within the bright-line period is taxed as ordinary income. The rules are complex and depend on the purchase date, property type, and whether it was your main home — see the bright-line test guide for the full picture.

GST is charged at 15% on most goods and services. You must register for GST if your annual turnover exceeds $60,000 — and may choose to register voluntarily below this threshold. Registered businesses collect GST on behalf of IRD and can claim back GST on business expenses.

The ACC earner levy — currently 1.67 cents per dollar of liable earnings — is automatically deducted through PAYE for employees and is often overlooked when calculating after-tax income. For self-employed people and contractors, ACC levies are invoiced separately each year and vary by industry based on occupation risk. Failure to register with ACC can result in penalties and backdated levies.

NZ Tax Year

The NZ tax year runs 1 April to 31 March. The 2025–26 tax year ends 31 March 2026. IR3 returns for self-filers are due 7 July 2026. Employees are automatically assessed by IRD in May–June 2026.

NZ Income Tax Rates 2025–26

Taxable incomeTax rate
$0 – $14,00010.5%
$14,001 – $48,00017.5%
$48,001 – $70,00030%
$70,001 – $180,00033%
Over $180,00039%

Tax Clusters

Self-Employed & Contractor Tax

For sole traders, contractors, and freelancers managing their own tax.


Rental Property Tax

Tax rules for landlords and property investors.


Investment Tax

PIE funds, FIF, crypto, shares, KiwiSaver, and term deposit tax rules.


Employment Tax

PAYE, tax codes, bonuses, redundancy, holiday pay, and employer obligations.


GST

Registration, filing, claiming GST back, imports, and zero-rated supplies.


Tax Filing

myIR, refunds, late returns, voluntary disclosure, records, and tax agents.


Working for Families

WFF tax credits for families with dependent children.


Business Tax

Company tax, sole trader vs company, shareholder salaries, imputation credits, R&D credit, and more.


Trust Tax

Family trusts, trustee income tax, and trust vs company comparison.


Expat & International Tax

NZ tax residency, leaving NZ, working holidays, Australians in NZ, and overseas student loans.


Other NZ Taxes

FBT, RWT, overseas income, inheritance, and charitable donations.


Calculators