New Zealand offers a generous tax credit for donations to approved charities — you get 33.33 cents back for every dollar you donate. This effectively reduces the after-tax cost of giving significantly. Yet many New Zealanders fail to claim this credit, leaving real money with IRD.
You can claim a 33.33% tax credit on donations of $5 or more to approved donee organisations (registered charities). There is no upper limit on the donation amount you can claim on, you can claim on 100% of your taxable income. Submit your receipts in myIR, or on the IR526 claim form if you do not have myIR. IRD pays the credit directly into your bank account. You need official receipts from the charity, electronic receipts are fine.
How the Donation Tax Credit Works
When you donate to an approved charity:
- The credit is 33.33% (one-third) of your donation amount
- This credit directly reduces your tax bill — it is not a deduction, it is a dollar-for-dollar reduction in tax owed
- If your tax bill is already zero (e.g., you have had correct PAYE deducted), the credit is refunded to you as cash
Example: $300 donation to a registered charity
- Tax credit: $300 × 33.33% = $100 refund from IRD
| Donation amount | Tax credit (33.33%) | Effective after-tax cost |
|---|---|---|
| $100 | $33 | $67 |
| $500 | $167 | $333 |
| $1,000 | $333 | $667 |
| $5,000 | $1,667 | $3,333 |
Who Qualifies for the Credit
The donation tax credit is available to individuals (including those with trust distributions). Companies do not use the donation tax credit — companies deduct donations as a business expense instead.
Requirements:
- You made a donation of $5 or more to an approved donee organisation
- The donation was made from your own money (not from a trust or business account)
- You hold a valid receipt from the organisation
What Is an Approved Donee Organisation?
A donee organisation is a charity registered with IRD for donation purposes. This includes:
- Charities registered with Charities Services NZ (the main register)
- Some government bodies, museums, libraries, and universities
- Overseas charities that meet IRD criteria
You can search IRD’s database of approved donee organisations at ird.govt.nz under “donee organisations.”
Common approved organisations: Cancer Society, Heart Foundation, St John, SPCA, Salvation Army, Oxfam NZ, KidsCan, Ronald McDonald House, university foundations, Kiwi Foundation, and many others.
Not eligible: Donations to school fundraisers (unless the school’s foundation is a registered donee), crowdfunding campaigns (unless the platform and recipient are registered), political parties, or overseas charities not approved by IRD.
How to Claim
Via myIR (Recommended)
- Log in to myIR. If “Donation tax credit” is not an option on your home page, register for it under “I want to…”
- Select your donation tax credit account, then “Enter donation tax credit receipts” and “Add a receipt”
- Fill in the details: the approved organisation, the type of donation, the date of the receipt and the amount
- Attach your receipt (a PDF, or a photo or scan of a paper receipt)
- Select “Submit”
IRD says you can submit receipts in myIR during the year, but it cannot process a claim before the end of the tax year it relates to. Processing times are on IRD’s website.
Via the IR526 Claim Form (If You Do Not Use myIR)
Complete the Tax credit claim form (IR526) and post it with your receipts to IRD. If you use the IR526, you must submit all your receipts after the tax year ends on 31 March.
If You File an IR3
If you need to file an Individual income tax return (IR3), IRD can only process your donation claim after you file the return, because it needs your taxable income.
Automatic Assessment
If IRD issues your assessment automatically, you can add donations via myIR — the assessment updates to include the credit.
Filing Deadline for Donation Claims
You have 4 years to submit receipts to claim donation tax credits. For example, donations made in the 2021–22 year can be claimed until 31 March 2026.
Maximum Claim Amount
You can claim on donations that add up to no more than your total taxable income for the year. The most you can claim in a year is the lower of one-third of your taxable income and one-third of your total donations.
If your donations were more than your taxable income, you can split them and let your partner claim the rest, up to their taxable income.
Payroll Giving — Donate from Your Pay
If your employer participates in payroll giving, you can authorise recurring deductions from your pay to approved charities. The tax credit is applied immediately (reducing your PAYE each pay period) rather than as a year-end refund:
- Donation deducted from gross pay
- PAYE reduced by 33.33% of the donation
- Net effect: your take-home pay decreases by only 67 cents per dollar donated
This provides immediate cash flow benefit vs. waiting for a year-end refund.
Frequently Asked Questions
Can I claim on a donation I made to a local school?
IRD says you can claim for donations to most schools, parent teacher organisations and kindergartens, as long as the money goes to the general fund. Check that the organisation is on IRD’s approved donee list and get a receipt.
I donated $5,000 to charity but I’m a low income earner and paid little tax. Can I still claim?
Yes, provided you earned taxable income. The credit is the lower of one-third of your taxable income and one-third of your donations, so a low taxable income limits it. For example, with $6,000 of taxable income the most you could claim is $2,000 (one-third of $6,000).
Do I need paper receipts or will an email confirmation do?
Electronic receipts (email confirmations from charities) are acceptable. The receipt must show the charity’s name, your name, the amount, and the date. Keep receipts for at least 7 years.
Can businesses claim donation tax credits?
No — companies claim donations as a deductible expense (under s. DB 41 of the Income Tax Act 2007), not as a tax credit. The deduction reduces taxable income at the company tax rate (28%), which is less generous than the individual 33.33% credit.