Skip to main content

Sharesies Tax NZ 2026 — How Your Investments Are Taxed

Updated

Sharesies is one of New Zealand’s most popular investing platforms — and tax on Sharesies investments is a common area of confusion. The rules differ depending on what you invest in: NZX shares, Australian shares, or US/global shares all have different tax treatment.

Quick answer

NZX shares: dividends are taxable (with imputation credits); capital gains generally not. Australian/US shares: if your total overseas portfolio (at cost) exceeds NZD $50,000, the FIF regime applies — you are taxed on 5% of the portfolio value per year regardless of sales. Under $50,000 overseas: dividends taxable, no tax on capital gains. Sharesies sends you an annual tax statement — check it each year and include relevant figures in your IR3 or automatic assessment.

How Sharesies Tax Works by Investment Type

NZX and ASX Shares

Dividends:

  • Taxable at your marginal income tax rate
  • NZX dividends carry imputation credits (reducing tax owed)
  • RWT at your nominated rate is withheld at source
  • Include dividends in your tax return; credits/RWT withheld reduce your liability

Capital gains:

  • Generally not taxed for passive investors
  • If you buy and sell frequently with intent to profit, gains may be taxable
  • Most casual Sharesies investors are not considered “traders”

US and International Shares

Under $50,000 overseas portfolio (at cost):

  • Dividends are taxable at your marginal rate
  • US withholds 15% withholding tax on dividends (under NZ-US DTA)
  • Claim a foreign tax credit for the 15% withheld
  • Capital gains not taxed

Over $50,000 overseas portfolio (at cost):

  • FIF regime applies
  • Tax is calculated on the higher of: 5% of the portfolio value at 1 April (Fair Dividend Rate method), or actual dividends received
  • You pay tax even if you made no sales
  • Capital gains are not additionally taxed (FIF replaces CGT for this portfolio)
  • See FIF Tax NZ for full details

Sharesies Annual Tax Statement

Sharesies provides an annual tax statement each year (usually available in April/May after the tax year ends). It summarises:

  • Total dividends received (NZX, ASX, US, other)
  • Imputation credits attached to NZX dividends
  • RWT withheld on NZX/ASX dividends
  • Foreign withholding tax deducted on US dividends
  • FIF income calculation (if applicable)

Download this from your Sharesies app (Account → Tax → Tax statement). Use it to complete your IR3 or check against your automatic assessment.

Setting Your PIR Rate on Sharesies Funds

If you invest in Sharesies’ managed funds or ETFs (rather than individual shares), some may be structured as Portfolio Investment Entities (PIEs). For PIE investments:

  • Your Prescribed Investor Rate (PIR) applies instead of your marginal tax rate
  • Maximum PIR rate is 28% — even if you pay 33% or 39% personal income tax
  • This tax savings benefit is significant for higher-income investors

Set your PIR correctly in Sharesies (Account settings → Tax information):

  • Under $14,000: 10.5%
  • $14,001–$48,000: 17.5%
  • Over $48,000: 28%

The PIR is based on income from the prior two years. If uncertain, use the lower rate — overpaying PIR tax cannot be refunded (unlike RWT), so it is better to set a rate that is correct or slightly low.

Do I Need to File an IR3 for My Sharesies Investments?

PAYE employees with only NZX shares (under $50k): IRD’s automatic assessment often includes dividend and imputation credit data from NZX companies. Check your assessment in myIR — if the figures look correct, confirm and you are done. No IR3 needed.

If you have US/overseas shares under $50k: Your automatic assessment may not include all overseas income. You may need to file an IR3 to declare foreign dividends and claim foreign tax credits.

If you have overseas shares over $50k (FIF): You must file an IR3 each year to calculate and declare FIF income. This is compulsory — IRD does not calculate FIF for you.

The $50,000 FIF Threshold — What Counts

The $50,000 threshold applies to the cost (what you paid) of overseas investments:

  • All overseas shares combined: US, Australian (ASX-listed, not NZX), European, Asian
  • NZX shares and NZX-listed ETFs: do not count toward the threshold
  • Australian shares listed only on the ASX: count toward the threshold
  • Dual-listed shares (NZX + ASX): may not count — seek advice

Example:

  • US shares bought for $30,000 + ASX shares bought for $25,000 = $55,000 total cost → FIF applies

Frequently Asked Questions

I invested $40,000 in US shares via Sharesies. Do FIF rules apply?

No — the $50,000 threshold applies to the cost price of overseas investments. At $40,000 cost, FIF rules do not apply. You declare US dividends as income and claim the 15% US withholding tax as a foreign tax credit. No tax on capital gains.

I reinvested dividends (DRP) — are they still taxable?

Yes. A dividend reinvestment plan (DRP) means you receive shares instead of cash, but the dividend is still taxable income. Include the cash equivalent of shares received in your tax return.

Sharesies has me marked as a “non-PIR” investor. What does that mean?

It means your investment is in individual shares (not a PIE fund). Individual shares are taxed under the normal income tax rules (marginal rates, RWT, FIF), not PIE rules.