You can download a digital copy of our comprehensive 2026 Tax Facts brochure, request a printed copy or scroll down to view the individual facts, which cover everything from ACC rates and FBT to GST and UOMI rates.
The earners' account levy is $1.75 per $100 of earnings (GST inclusive) for the 2026/27 income year and the minimum and maximum liable earnings are as follows.
| Minimum | Maximum | |
| Employees | $1 | $156,641 |
| Self-employed people | $50,501 | $156,641 |
NRWT is deducted at 0% from interest paid by a New Zealand borrower to an overseas lender where the parties are not associated (or the funds originate from an associate), the borrower is an approved issuer and the debt instrument is approved by Inland Revenue. Instead, AIL equal to 2% or 0% (for certain securities) of the interest payments is payable.
Individuals, companies and trusts
| Taxpayer and provisional tax year | Year of RIT used | Standard uplift |
| 2026 | 2024 2025 |
110% of RIT 105% of RIT |
| 2027 | 2025 2026 |
110% of RIT 105% of RIT |
Provisional tax can also be calculated using the estimation option, GST ratio method (subject to certain criteria being met) or accounting income method (subject to certain criteria being met). The year used in calculating the uplift is the year of the most recent filed income tax return.
CFC
A CFC is a foreign company that is more than 40% controlled by one New Zealand resident or more than 50% controlled by two to five New Zealand residents. Income is taxable in New Zealand if the CFC’s "passive income" is equal to or more than 5% of the total income earned by the CFC.
Non-portfolio FIF
This is a foreign company owned 10% or more (but not controlled) by New Zealand residents. Taxed either as a CFC or as a portfolio FIF.
Portfolio FIF
A foreign company not controlled by New Zealand residents, or a foreign superannuation scheme or foreign life insurance policy. An ownership interest of less than 10% is required. Taxed using one of six methods:
A foreign superannuation scheme entered into by a non-resident is subject to separate rules when lump sum withdrawals are made from the scheme. Regular pensions and commutation payments are taxed as income.
Straight line or diminishing value can be applied on an asset-by-asset basis. Depreciation rates vary depending on estimated useful life. Individual asset purchases can be immediately deducted if, in most cases, the item cost less than $1,000. Special rules apply where assets using the same depreciation rate are purchased at the same time.
Buildings and fit-outs are treated as follows:
| Buildings | Residential buildings are not depreciable. Commercial and industrial buildings are not depreciable from the 2024/25 year |
| Fit-outs | Commercial fit-outs are depreciable. Residential fit-outs are non-depreciable, but chattels can be depreciated |
| Companies | Allowed a deduction for approved charitable donations up to their taxable income |
| Individuals | Cash refund for one‑third of donations of $5 or more to approved charitable organisations (provided the value of gifts made do not exceed their taxable income) |
ESCT is deductible from employer contributions to superannuation schemes, including employer contributions to KiwiSaver.
| Income plus superannuation contributions | Rate |
| $0 – $18,720 | 10.5% |
| $18,721 – $64,200 | 17.5% |
| $64,201 – $93,720 | 30% |
| $93,721 – $216,000 | 33% |
| Over $216,000 | 39% |
| Quarters 1 to 3 | Quarter 4 |
| 63.93% (single rate) | 63.93% (single rate) or the alternate rate calculation (see below) |
| 49.25% (pooled alternate rate) | 49.25% (pooled alternate rate) |
| 49.25% (alternate rate) | Alternate rate calculation (see below) |
The alternate rate calculation applies the following rates.
| Income plus fringe benefits | Rate |
| $0 – $13,962 | 11.73% |
| $13,963 – $45,230 | 21.21% |
| $45,231 – $62,450 | 42.86% |
| $62,451 – $130,723 | 49.25% |
| Over $130,723 | 63.93% |
GST is charged at the rate of 15% on all taxable supplies made in New Zealand. To find the GST component of a GST-inclusive amount, multiply by 3/23. Non-resident businesses can be refunded GST paid on New Zealand purchases, in some cases.
The maximum imputation ratio is 28:72. Dividends are subject to resident withholding tax (RWT) at the rate of 33% to the extent the dividend is unimputed. Generally, an additional 5% RWT must be withheld where dividends are imputed at 28%, but this is not compulsory where the recipient is a company. The imputation credit account must have a credit balance at 31 March, or a 10% penalty will apply to the debit balance.
Individuals
| Income | Rate |
| $0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| Over $180,000 | 39% |
Companies
| Rate | |
| Companies (including branches or permanent establishments of non-resident companies and unit trusts) | 28% |
Trusts
| Rate | |
| Trustee income < $10,001 | 33% |
| Trustee income > $10,000 | 39% |
| Trustee income of deceased estates in first four years | 33% |
| Trustee income of disabled beneficiary trusts | 33% |
| Beneficiary income (excluding minor beneficiaries) | Individual rates (see above) |
| Beneficiary income of corporate beneficiaries | 39% |
| Minor beneficiaries (under age 16) with beneficiary income over $1,000 per trust | 39% |
| Distributions from non-complying trusts | 45% |
Flow-through entities
| Rate | |
| Limited partnerships (LP) and look-through companies (LTC) | Partner’s or owner’s rates (see categories above) |
For residential property acquired on or after 27 March 2021, interest incurred from 1 October 2021 to 31 March 2024 is not tax deductible. Interest incurred on those properties after 1 April 2024 is deductible, consistent with properties acquired before 27 March 2021.
For property acquired before 27 March 2021, interest deductibility was reduced until 31 March 2025 and has now been restored, with full deductions allowed from 1 April 2025. The percentages of interest incurred that are denied a deduction are as follows:
| Period that interest is incurred | Percentage denied |
| 1 April 2024 to 31 March 2025 | 20% |
| On and after 1 April 2025 | 0% |
New builds with a code compliance certificate issued on or after 27 March 2020 are not subject to the above restrictions.
From 22 May 2025, businesses can claim 20% of the upfront cost of New Zealand new assets as an expense, then claim depreciation as usual on the remaining 80%. The deduction is allowed in the year the asset is purchased; however, some assets are not eligible, in particular residential property.
| Rate | |
| Employee contribution | 3.5, 4, 6, 8 or 10% |
| Employer contribution | 3.5% |
| Member tax credit | 25c for each $1 contributed by a member, to a maximum of $260.72 |
Available options are:
Inland Revenue kilometre rates for the 2025-2026 income year are:
| Vehicle type | First 14,000km | After 14,000km |
| Petrol | $1.20 | 37 cents |
| Diesel | $1.30 | 38 cents |
| Petrol hybrid | $0.90 | 24 cents |
| Electric | $1.22 | 23 cents |
| Interest | Dividends | Royalties | |
| Default | 0, 15% | 0, 15 or 30% | 15% |
| Australia | 0, 10% | 0, 5, 15% | 5% |
| China | 0, 10% | 0, 15% | 10% |
| France | 0, 10% | 0, 15% | 10% |
| Germany | 0, 10% | 0, 15% | 10% |
| Hong Kong | 0, 10% | 0, 5, 15% | 5% |
| Japan | 0, 10% | 0, 15% | 5% |
| Singapore | 0, 10% | 0, 5, 15% | 5% |
| UK | 0, 10% | 0, 15% | 10% |
| USA | 0, 10% | 0, 5, 15% | 5% |
Where a double tax agreement exists, the default NRWT rates may be reduced. Above are examples of rates for some common treaty partners (also including reduced rates where New Zealand rules permit). New Zealand’s extensive treaty network means specific rates are dependent on individual circumstances (please seek professional advice).
Resident individual investors
| Income (worldwide) | Income plus PIE income/loss | Rate |
| $0 – $15,600 | $0 – $53,500 | 10.5% |
| $0 – $53,500 | $0 – $78,100 | 17.5% |
| All others | 28% | |
Both thresholds must be met for the rate to apply. Row Two applies if Row One thresholds are not met. Income is measured for either of the past two years. Trust, corporate and non-resident investors are subject to rates of between 0% and 30%, depending on type of entity and other relevant circumstances. Please seek professional advice.
| Quarters between | Rate |
| 01/04/2025 to 30/06/2025 | 7.38% |
| 01/07/2025 to 30/09/2025 | 6.67% |
| 01/10/2025 to 31/12/2025 | 6.29% |
| From 01/01/2026 | 5.77% |
These rates are also used to calculate the value of a deemed dividend arising where funds are lent by a company to its shareholders.
The number of times provisional tax is payable depends on the option used to calculate provisional tax and how many times GST (if registered) is paid. Examples of payment dates for the most common balance dates are below. If the due date is not a working day, then it moves to the next working day. Terminal tax dates shown apply to taxpayers linked to a tax agent.
| 31 Mar | 30 Jun | 31 Dec | ||||
| 2026 | 2027 | 2026 | 2027 | 2026 | 2027 | |
| First instalment | 28 Aug 2025 | 28 Aug 2026 | 28 Nov 2025 | 28 Nov 2026 | 28 May 2026 | 28 May 2027 |
| Second instalment | 15 Jan 2026 | 15 Jan 2027 | 28 Mar 2026 | 28 Mar 2027 | 28 Sep 2026 | 28 Sep 2027 |
| Third instalment | 7 May 2026 | 7 May 2027 | 28 Jul 2026 | 28 Jul 2027 | 28 Jan 2027 | 28 Jan 2028 |
| Terminal tax | 7 Apr 2027 | 7 Apr 2028 | 7 Apr 2027 | 7 Apr 2028 | 15 Jan 2028 | 15 Jan 2029 |
A tax credit of 15% is available on specified research and development spending, and is refundable in some circumstances. Pre-approval of activities must be sought before claiming the R&D credit.
| Application | Rule |
| 183-day rule | NZ tax resident if present > 183 days in any 12‑month period. Residency is backdated to day one of presence. |
| Permanent Place of Abode (PPOA) | NZ tax resident if you have a home in NZ, even if taxpayer is overseas or own homes elsewhere. |
| DTA tie‑breaker tests | If resident in multiple countries, tax treaties determine residence using tests including permanent home, vital interests and habitual abode. |
| Transitional residency | New residents and some returning NZ residents may get up to 48 months of foreign income exemption. |
| Visitor visa – digital nomads | Visitors to New Zealand may work remotely for overseas employers only and not be taxed if they are present in New Zealand for up to 275 days in any 18-month period. |
| Individual income bands | Rate |
| $0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| Over $180,000 | 39% |
| Companies | 28% |
| Trusts | 17.5, 30, 33 or 39% |
| Default (IRD Number Supplied) | 33% |
| IRD Number Not Supplied | 45% |
All dividends and interest paid must be reported to Inland Revenue by the 20th of the month following payment, including details of the recipients of the interest or dividend.
The repayment threshold remains $24,128, with the repayment rate at 12%. Repayment holidays are one year in length for borrowers who go overseas and apply for a repayment holiday. Losses cannot be used against income to reduce a liability for student loan repayments.
Tax shortfall
| Lack of reasonable care | Unacceptable tax position | Gross carelessness | Abusive tax position | Evasion |
| 20% | 20% | 40% | 100% | 150% |
These penalties may be reduced where a voluntary disclosure is made, or the shortfall is temporary as well as for previous good behaviour.
Late filing
| Return type | Penalty |
| Income tax | $50 to $500 |
| Employer monthly schedule | $250 |
| GST | $50 or $250 |
| Multinational top‑up tax | $500 |
| ICA or reconciliation statement | $250 |
Late payment
| Date | Penalty |
| Day following due date | 1% |
| Seven days following due date | 4% |
Interest deductions can be restricted if both the New Zealand and worldwide group debt percentages are exceeded.
| Inbound | Outbound | |
| New Zealand group debt exceeds | 60% | 75% |
| Worldwide group debt exceeds | 110% | 110% |
Use of money interest on provisional tax will arise at times outlined below provided payment is made on time based on the standard uplift for the taxpayer and associates. Special rules apply in the first year of business.
| Standard uplift | Estimate | ||
| Actual RIT < $60,000 | Actual RIT > $60,000 | ||
| First instalment | N/A | N/A | ✔ |
| Second instalment | N/A | N/A | ✔ |
| Third instalment | N/A | ✔ | ✔ |
| Period | Underpayments | Overpayments |
| 29/08/2023 to 15/01/2025 | 10.91% | 4.67% |
| 16/01/2025 to 07/05/2025 | 10.88% | 4.30% |
| 08/05/2025 to 15/01/2026 | 9.89% | 3.27% |
| From 16/01/2026 | 8.97% | 2.25% |
| Rate | |
| Minimum rate for residents | 10% |
| Minimum rate for non‑residents | 15% |
| Non‑resident entertainers | 20% |
| IRD number not supplied (company) | 20% |
| IRD number not supplied (individual) | 45% |
Schedular payments are payments for specific activities such as directorships, labour hire firm contractors, actors and commission sellers.
Recipients can choose their rate on the filing of an IR330C provided it is greater than the minimum rates above. Default rates apply where a rate is not chosen.
Rates for non-residents can apply to non-resident contractors performing services of any kind. Exemptions are available in some situations.
The above information is based on legislation and government pronouncements as at 31 March 2026 and we have made every effort to ensure its accuracy as at that date. This information should not be relied upon as professional advice, especially as government pronouncements after this date may have retrospective effect when enacted
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