If you are on a working holiday visa (WHV) in New Zealand, you pay income tax just like any NZ employee — and you may be owed a refund when you leave. This guide explains which tax code to use, how tax is calculated, and how to claim your refund through myIR.
Working holiday visa holders are taxed as NZ tax residents if they have been in NZ for 183+ days. Use tax code M (or ME if earning $24,000–$48,000). When you leave, file an IR3 or request a tax assessment through myIR to claim any refund. Common reasons for refunds: changing jobs (secondary tax applied), part-year income (less than the annual estimate), or unused IETC. Register on myIR as soon as you arrive to manage your tax easily.
Are You a NZ Tax Resident?
Your tax obligations depend on whether you are a NZ tax resident:
NZ tax resident (taxed on all NZ income at resident rates):
- You have been in NZ for 183+ days in any 12-month period
- This applies to most WHV holders who stay more than 6 months
Non-resident (taxed at non-resident rates):
- You are in NZ for fewer than 183 days
- Non-residents pay a flat 15% withholding rate on employment income (no tax brackets)
Most WHV holders become NZ tax residents within 6 months. From that point, normal NZ income tax rates apply (10.5%–39% depending on income).
Which Tax Code to Use
When you start work in NZ, your employer will ask for your tax code. If you are a NZ tax resident WHV holder:
| Situation | Tax code |
|---|---|
| This is your only job | M |
| You earn $24,000–$48,000 and have no other income | ME (see IETC) |
| Second or additional job | S |
| You have a student loan (unlikely for WHV) | Add SL suffix (e.g., MSL) |
Use M if in doubt. ME gives you the Independent Earner Tax Credit ($520/year) but only if you earn in the eligible range with no other income.
If you do not have a NZ IRD number yet, your employer must withhold tax at the no-declaration rate (45%) — get your IRD number through IRD’s online application as soon as possible.
Getting a NZ IRD Number
Required to work legally in NZ. Apply online at ird.govt.nz:
- Create or log in to myIR
- Select Apply for IRD number
- Provide your passport, visa, and residential address in NZ
- IRD numbers are issued within a few days (online)
Without an IRD number, your employer deducts 45% tax — far more than you should pay.
NZ Tax Rates on Your Wages
If a NZ resident, income tax is applied at the same rates as any NZ worker:
| Annual income | Tax rate |
|---|---|
| $0–$14,000 | 10.5% |
| $14,001–$48,000 | 17.5% |
| $48,001–$70,000 | 30.0% |
| $70,001–$180,000 | 33.0% |
Plus 1.46% ACC earner levy deducted from wages.
Why Working Holiday Visitors Often Get a Refund
Common reasons WHV holders are owed tax back:
Part-year income: You worked for part of the year — PAYE is calculated as if you would earn at the same rate all year. If you earned $24,000 in 6 months, PAYE assumes $48,000 annual income and overtaxes you.
Multiple jobs with secondary tax: If you had two jobs, the second was taxed at 17.5% flat (secondary rate S), which may be too high.
Unused IETC: If you used tax code M instead of ME and earned $24,000–$48,000, you may be owed the $520 IETC.
No-declaration rate (45%): If your employer withheld at 45% before you got an IRD number — you almost certainly overpaid.
How to Claim Your Refund When You Leave
Option 1: Automatic assessment through myIR
- Log in to myIR
- Check Income tax → Tax assessments
- If IRD has issued an assessment showing a refund, confirm it
- Ensure a NZ bank account is registered to receive the refund
- If you have already closed your NZ bank account, you will need to contact IRD to arrange a refund another way (international bank transfer or NZ cheque)
Option 2: File an IR3 If no automatic assessment has been issued, file an IR3 to claim your refund. Include all employment income and taxes paid.
Option 3: Before you leave You can file early (before your departure) if the tax year has ended (31 March). If you are leaving before 31 March, you can file after year-end from overseas.
KiwiSaver on Working Holiday
If your employer enrolled you in KiwiSaver (automatic for employees working 28+ days at the same employer):
- You can opt out within the first 56 days of employment (first time in KiwiSaver in NZ)
- After opting out, you stop contributions
- If you leave NZ and were enrolled in KiwiSaver, you cannot withdraw until:
- You have been living overseas for 12+ continuous months AND
- You are leaving NZ permanently
Most WHV holders opt out of KiwiSaver. If you did not opt out, your contributions remain locked in until the withdrawal conditions are met.
Frequently Asked Questions
I was only in NZ for 3 months. Am I a NZ tax resident?
No — under 183 days means non-resident. Your employer should have withheld tax at 15% (non-resident employee rate). If they withheld PAYE at resident rates, you may still get some back — contact IRD.
I am leaving next week and the tax year hasn’t ended yet. Can I still file?
Yes — you can file for the income year so far. IRD allows WHV holders and short-term workers to file early when leaving NZ. File an IR3 with your income up to your departure date.
What if I come back to NZ in the future? Do I lose my KiwiSaver?
No — your KiwiSaver stays with your provider. If you return to NZ and work again, you automatically re-enrol (or can opt out again). The balance accumulates and is available at age 65 regardless of residency.