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Tax made simple. Everything you need to know about your tax.

In New Zealand, a tax year runs from 1 April to 31 March.

If you’re earning wages or a salary, your employer collects tax via PAYE during the year.

If you have other types of income (e.g., contracting, investment returns), you’ll still need to engage in the annual process. Refunds for tax years older than five years may no longer be available.

Find out more

In New Zealand, a tax year runs from 1 April to 31 March.

If you’re earning wages or a salary, your employer collects tax via PAYE during the year.

If you have other types of income (e.g., contracting, investment returns), you’ll still need to engage in the annual process. Refunds for tax years older than five years may no longer be available.

Find out more

What is income tax?

Income tax is the money deducted from what you earn. For most Kiwis who work for an employer, it’s taken out before you get paid.

There are major categories:

  • PAYE – tax taken from salary or wages by your employer.
  • Schedular payments – tax on certain types of contractor or casual work.
If you haven’t paid enough tax by year-end, you may have a bill due by 7 February the following year. If you’ve paid too much, you’ll be eligible for a refund (this usually starts being processed around mid-June).
Taxable Income Rate
(cents per dollar)
Up to $15,600 10.5c
$15,601 - $53,500 17.5c
$53,501 - $78,100 30c
$78,101 - $180,000 33c
$180,001 and over 39c

What’s a tax code?

Your tax code determines how much tax is deducted from your income. The correct code depends on your job status and whether you have a student loan.

Main job, one source of income:

  • Use code M, or if you have a student loan: M SL.
  • If you’re eligible for the Independent Earner Tax Credit and are pre-qualified, you may use M E (or M E SL if you have a student loan).

Second job or multiple income streams:

Estimate your gross annual income to choose the correct secondary tax code:

  • Less than $15,600 = SB
  • $15,601 – $53,500 = S
  • $53,501 – $78,100 = SH
  • $78,101 – $180,000 = ST
  • Over $180,001 = SA

There are other specific codes:

  • SL at the end if you have a student loan (e.g., S SL)
  • WT for schedular payments
  • CAE for casual agricultural employees
  • NSW, STC for special circumstances

Why do some people get a refund – or a bill?

At the end of every tax year, an annual check is done to see if what you paid in tax matches your actual income.

You’re more likely to get a refund if you:

  • Worked part of the year.
  • Had a bonus, redundancy, or other lump sum payment.
  • Worked for more than one employer.
  • Have claimable expenses.
  • Were eligible for the Independent Earner Tax Credit but didn’t claim all of it.

You may get a tax bill if you:

  • Used the wrong tax code.
  • Claimed a tax credit you weren’t eligible for.
  • Have self-employment, rental income or other untaxed income.
  • Have incorrect Working for Families details.
  • Used a low PIR (prescribed investor rate) on investment income.

What can you reclaim from your charitable donations?

Donation rebates are one of the most under-claimed benefits available to everyday Kiwis. We take the reins on the entire process, making it easy to recover money you’ve already earned through your generosity.
As a registered tax agent, we manage the paperwork, verify your receipts, and liaise directly with Inland Revenue to secure your rebate. It’s a streamlined, low-effort way to unlock extra value without the operational overhead.

What is the ACC Earners Levy?

Every employee must pay the ACC Earners’ Levy — this covers the cost of non-work-related injury claims and is collected by IRD on behalf of the Accident Compensation Corporation (ACC).

2023 tax year ACC earners levy rate was 1.46% with a maximum cap of $136,544.

2024 tax year ACC earners levy rate was 1.53% with a maximum cap of $139,384.

2025 tax year ACC earners levy rate was 1.60% with a maximum cap of $142,283.

2026 tax year ACC earners levy rate was 1.67% with a maximum cap of $152,790.

2027 tax year ACC earners levy rate was 1.75% with a maximum cap of $156,641.

What is an Individual Income Return (IR3)?

If you receive income beyond standard salary/wages — for example from self-employment, rental properties or overseas work — you’ll likely need to file a return called an IR3. An IR3 determines:
  • What income was earned during the year.
  • How much tax was paid on the income.
  • Any business expenses claimed.
  • If the client went overseas for more than 6 months throughout the financial year.
  • Can take up to 10 weeks to be processed.
  • IR3’s are required to be filed at Inland Revenue and can results in late filing penalties.
There are many reasons why a client maybe required to file and IR3, some of the reasons are:
  • Been overseas for more than 6 months.
  • Rental Income.
  • Self-Employment Income.
  • Bankruptcy.

What are Working for Families Tax Credits?

These tax credits are designed to help families with dependent children (aged 18 or younger) with everyday living costs. They’re paid to the main carer of the child. While they don’t change your income tax rate, they must be reconciled alongside your tax return. What types of tax credits are there? Clients might qualify for one or more type of tax credit, depending on their circumstances: family tax credit – the most common payment, paid regardless of your source of income in-work tax credit – paid to families who normally work a minimum number of hours each week minimum family tax credit – paid to families who earn up to a certain amount per year before tax parental tax credit – paid for the first 56 days (eight weeks) after your baby is born or adopted (first 70 days (10 weeks) for babies born on or after 1 April 2015). How much can you get? The amount depends on:
  • how many children you support financially who are 18 or younger.
  • your children’s ages.
  • any shared care arrangements.
  • your family income (how much you and your spouse or partner earn).
  • the source of your family income eg salary or wages, business, student allowance or benefit.
  • the number of hours you work each week.

Need help working out what applies to you?

Apply now and we’ll walk you through step-by-step.