Taxes in New Zealand in 2026

Tax rates in New Zealand in 2026: at a glance

New Zealand is one of the few developed economies with no general capital gains tax, no inheritance tax and no compulsory pension contributions. The bill arrives elsewhere: the state takes up to 39% of a salary, and GST (Goods and Services Tax, the local equivalent of VAT) is 15%, one and a half times the rate in neighbouring Australia.

Taxes are collected by Inland Revenue (IRD), the national tax authority. The tax year runs from 1 April to 31 March, so the 2026-27 rates apply from 1 April 2026. All amounts below are in New Zealand dollars (NZD): in 2026, 1 NZD is worth about 0.57 US dollars, or about 48 roubles at the Bank of Russia rate.

The main trap for newcomers is not the rates but the rules on foreign assets. Foreign shares that cost more than NZD 50,000 in total are taxed every year on a deemed income even if nothing is sold, and Inland Revenue presumes that crypto is bought to be resold. The details are in the capital gains section below.

Compare taxes in 146 countries: relocation taxes 2026

Who counts as a New Zealand tax resident

New Zealand tax residence arrives faster than most newcomers expect: spending more than 183 days in the country in any 12-month period, not necessarily a calendar year, is enough. Residence then applies backwards to the first day of arrival (section YD 1 of the Income Tax Act 2007), and tax is due on worldwide income.

The second test is stronger than the first: a permanent place of abode. If a home that the owner uses stays available in New Zealand, together with strong ties such as family, work and bank accounts, residence continues even while the owner lives abroad. Residence can be lost on day count only after more than 325 days outside New Zealand in a 12-month period, and only with no permanent place of abode in the country.

Four years without tax on foreign income

New Zealand offers newcomers a relief that attracts people who move with capital: transitional resident status. It goes to anyone who was not a New Zealand tax resident for the 10 years before arrival, both foreigners and returning New Zealanders. For about 48 months almost all foreign income is exempt: interest, dividends, rent and income under the foreign investment fund rules.

The exceptions matter. Pay for work performed while a transitional resident and income from services are taxable, even if a foreign company pays them. A software developer working from Auckland for an overseas employer pays New Zealand tax from the first month. The relief is available once in a lifetime and ends early if the family claims Working for Families tax credits.

New in 2026: remote work without residence

Since 1 April 2026 New Zealand has a non-resident visitor regime. Anyone arriving on or after that date stays non-resident for up to 275 days in any 18-month period, even beyond 183 days. The conditions: tax residence in another country, lawful presence on a visa, and work only for a foreign employer or foreign clients, with no sales in New Zealand and no work that requires being physically present in the country.

The regime was introduced by the Taxation (Annual Rates for 2025-26, Compliance Simplification, and Remedial Measures) Act 2026, which received Royal assent on 30 March 2026. Anyone who stays longer than 275 days moves onto the ordinary residence rules. How the 183-day rule works in different countries is covered in our article on tax residence and the 183-day rule.

New Zealand tax residency rules: how to count days and confirm your status

In New Zealand residency is backdated: reach more than 183 days in any 12 months and you are resident from the first of those days. That is how section YD 1 of the Income Tax Act 2007 works. The day you arrive and the day you leave count in full, even a minute before midnight.

Leaving is harder than arriving: you need more than 325 days abroad in 12 months and no permanent place of abode in the country. A home you return to holds your status tighter than an anchor. On the upside, new residents pay no tax on most foreign income for 4 years. The calculator below finds any 12 months with the required days.

The law does not stop you from confirming the status on your own. But mistakes cost more: backdated residency pulls in tax for months that felt like tourism, and a home left behind keeps you from exiting the status. Murblz support removes these risks: we count days, check your permanent home and your right to the new resident relief, and obtain the residency certificate. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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New Zealand income tax rates and take-home pay on a salary

New Zealand has no tax-free allowance: tax starts from the first dollar, but the first NZD 15,600 is taxed at only 10.5%. The rate then climbs in steps to 39%. The thresholds have applied since 31 July 2024 and Budget 2026 left them unchanged, so as wages rise more income drifts into the higher brackets.

Each rate applies only to the slice of income inside its bracket. A salary of NZD 200,000 is not taxed at 39% in full: only the top NZD 20,000 is.

Employers deduct tax from pay under PAYE (pay as you earn) and pass it to Inland Revenue. Employees with no other income do not need to file a return: after the year ends, Inland Revenue recalculates the position itself and refunds any overpayment or issues a bill.

What else comes out of pay: ACC and KiwiSaver

New Zealand has no social security tax in the usual sense: the state pension is paid from general taxation. The only compulsory payroll deduction on top of income tax is the earners' levy for the Accident Compensation Corporation (ACC), the state accident insurer. In 2026-27 it is 1.75% of pay, charged on earnings up to NZD 156,641 a year, so the maximum is NZD 2,741.22. A year earlier the rate was 1.67%. In return ACC pays for injury treatment and replaces part of lost earnings during recovery.

The second deduction is KiwiSaver, a voluntary retirement savings scheme. From 1 April 2026 the default contribution rose from 3% to 3.5% for both the member and the employer, and it will rise to 4% from 1 April 2028. New employees are enrolled automatically but can opt out between their second and eighth week in the job. Membership is open to citizens and people entitled to live in New Zealand indefinitely: an employee on a work visa cannot join.

The employer's KiwiSaver contribution is taxed separately under ESCT (employer superannuation contribution tax). The rate depends on the employee's previous-year earnings including such contributions.

The government adds 25 cents for every dollar a member contributes, up to NZD 260.72 a year. From 1 July 2025 members with taxable income above NZD 180,000 no longer receive this contribution.

Example: take-home pay on NZD 80,000 and NZD 150,000 a year

Example calculation: on a salary of NZD 80,000 a year (about USD 45,300), income tax and the ACC levy take 22.1%, leaving NZD 62,322.50, or roughly NZD 5,190 a month. At NZD 150,000 the burden rises to 28%. The KiwiSaver contribution is not a tax: the money stays in the member's retirement account.

On top of salary the employer pays 3.5% into KiwiSaver if the employee is a member, plus its own ACC work levy, which depends on the industry. There are no employer social contributions on the payroll of the kind familiar in Russia or continental Europe. If staff receive a company car or other non-cash perks, the employer pays fringe benefit tax (FBT) at rates from 11.73% to 63.93%.

Company tax and dividends in New Zealand

New Zealand companies pay 28% on profit, less than large businesses in neighbouring Australia (30%). A resident company is taxed on worldwide profit, a foreign company only on New Zealand profit. A company is resident if it is incorporated in New Zealand, or if its head office or centre of management is in the country, or its directors control it from here.

The defining feature of the system is imputation credits. Tax the company has already paid passes to the shareholder with the dividend. Profit is not taxed twice: a resident owner tops up only the difference between 28% and their personal rate, and if that rate is below 28% the excess credit is not refunded in cash but carried forward as a loss.

Example calculation: a company earns NZD 100,000, pays NZD 28,000 in tax and distributes the remaining NZD 72,000 to a resident owner. With the credit, the owner's tax at 39% is NZD 39,000 on NZD 100,000, of which the company has already paid 28,000, so the top-up is NZD 11,000. At a personal rate of 33% the top-up is NZD 5,000.

Since the 2024-25 tax year trustees pay 39% on income retained in a trust, or 33% if that income is NZD 10,000 or less. Groups with worldwide revenue of EUR 750 million or more have been subject to the OECD global minimum tax of 15% since 1 January 2025, with a domestic version for groups headquartered in New Zealand from 1 January 2026.

Tax incentives for business

Since 22 May 2025 Investment Boost has let businesses deduct 20% of the cost of new equipment, machinery and other business assets immediately in the year of purchase, on top of normal depreciation. It does not cover land, residential buildings, trading stock or assets previously used in New Zealand. Equipment imported from abroad qualifies even if it was used in another country.

For family businesses and rental property there is the look-through company: profit and losses are not taxed at company level but flow through to the owners, of whom there can be no more than five. Early-year losses can therefore be offset against other personal income.

Murblz specialists handle both steps: company registration in New Zealand and a business account with a New Zealand bank.

What is the GST rate in New Zealand and when to register

New Zealand GST is 15% and has almost no carve-outs: even food is taxed at the full rate. There are none of the reduced rates familiar from Europe. Financial services and residential rent are exempt, while exports and the sale of a going concern are zero-rated.

GST registration is compulsory if turnover in the past 12 months reached NZD 60,000 (about USD 34,000) or is expected to reach it in the next 12 months. A business can register voluntarily earlier to claim back GST on its purchases.

Foreign online shops and digital services charge GST themselves on sales to New Zealand consumers once those sales exceed NZD 60,000 a year. There is no GST refund for tourists at the airport as in Australia and Europe: the only GST-free purchases are goods the shop itself sends abroad and duty-free shopping.

From 1 April 2026 non-resident visitors working remotely for foreign clients can stay out of GST even with turnover above NZD 60,000, because their services to non-residents do not count towards the threshold. They may still register voluntarily if they want to claim GST on local expenses.

How sole traders, freelancers and remote workers pay tax in New Zealand

New Zealand has no turnover tax for small business, no patent regime and no special regime for IT companies. A sole trader pays the same 10.5-39% income tax, only on profit rather than revenue, meaning income less business expenses.

The main difference from employment is provisional tax. If the tax left to pay for a year (residual income tax) exceeds NZD 5,000, the next year's tax is paid in advance, under the standard method in three instalments: 28 August, 15 January and 7 May. A sole trader pays their own ACC levies on an invoice issued by ACC itself.

In some industries the client withholds tax from each payment to a contractor (schedular payments), and the contractor chooses the withholding rate on form IR330C (the contractor tax rate declaration). Without the form, 45% is withheld.

For IT and science the incentive is a credit rather than a regime: the Research and Development Tax Incentive gives a tax credit of 15% of R&D spending, provided it is at least NZD 50,000 a year.

Expats on work visas do not get a special rate either. Their tools are transitional resident status for about 4 years on foreign passive income and the new realisation-based method for foreign shares described below.

Digital nomads have it noticeably easier from 2026: a non-resident visitor can spend up to 9 months out of 18 in the country working for a foreign employer without paying New Zealand tax. The employer does not acquire a permanent establishment in New Zealand because of that employee, so it has no New Zealand tax obligations either.

Does New Zealand have capital gains tax, inheritance tax or property tax

New Zealand has no general capital gains tax, but gains on sale are taxed more often than many expect. The rule is simple: if property was bought with the purpose of resale, the gain is taxed as ordinary income at up to 39%. For homes, foreign shares and crypto the law adds separate and stricter rules.

Property: what owners pay

The bright-line period was cut from 10 years to 2 years for sales from 1 July 2024. When an offshore seller sells a home, residential land withholding tax (RLWT) is deducted from the price, capped at 10% of the price, and the final tax is settled in the return.

There is no annual national property tax. Local councils charge rates based on the rateable value of the property, so the amount varies noticeably from one city to another.

For foreigners, buying a home is harder than paying the tax. Since 22 October 2018 non-residents have generally been unable to buy residential property without consent from the land agency, Toitū Te Whenua Land Information New Zealand (LINZ). Buyers who need no consent include New Zealand citizens, Australian and Singaporean citizens, and residence-class visa holders who have lived in the country for the last 12 months, spent at least 183 days of that period in New Zealand and are tax resident.

Since 6 March 2026 holders of the Active Investor Plus, Investor 1 and Investor 2 visas can obtain consent to buy or build a home worth more than NZD 5 million (about USD 2.8 million). The investor visa conditions are covered on our New Zealand investor residence page.

Inheritance and gifts

Estate duty was abolished in 1992 and gift duty from 1 October 2011. Assets pass to heirs and recipients tax-free, and trusts are widely used to hold family wealth - see our page on a New Zealand trust. Income retained in a trust is taxed at 39%.

Foreign shares: tax without a sale

The foreign investment fund (FIF) rules are the nastiest surprise for people moving with a portfolio. If foreign shares and fund units cost more than NZD 50,000 in total, tax is due every year on a deemed income: usually 5% of the portfolio's market value at the start of the year. An individual may instead use the actual change in value plus dividends if that gives a lower figure. Tax is payable even in a year when nothing is sold.

The 2026 Act gave newcomers relief backdated to 1 April 2025: the revenue account method. It taxes only dividends received and gains on sale, and gains are reduced by 30% before tax. The method is available to people who became resident on or after 1 April 2024 after at least 5 years as non-residents, and it applies mainly to interests in unlisted foreign companies. Anyone who leaves New Zealand remains taxable on those interests if they sell them within 3 years of departure.

Crypto

For Inland Revenue, crypto is property, not money. It is presumed to be acquired for resale, so gains on sale, and even on swapping one coin for another, are taxed at ordinary rates of up to 39%. The presumption can be rebutted only with convincing evidence of another purpose.

Since 1 April 2026 New Zealand crypto exchanges and brokers collect customer data under the OECD Crypto-Asset Reporting Framework (CARF), the standard for exchanging information on crypto-assets. The first reporting period covers transactions from 1 April 2026 to 31 March 2027, with reports due to Inland Revenue by 30 June 2027.

Cars

There is no separate tax on owning a car. Owners pay an annual vehicle licence, and owners of diesel cars, electric vehicles and plug-in hybrids also pay road user charges per kilometre driven. For petrol cars excise in the fuel price plays that role.

What taxes do non-residents pay in New Zealand

A non-resident pays tax only on New Zealand income, but at almost the same rates as a resident. Pay for work done in the country is taxed on the same 10.5-39% scale through the employer. Passive income is taxed at source under non-resident withholding tax (NRWT).

A short business trip is often not taxed at all. Under double tax agreements salary is exempt if the employee spends no more than 183 days in New Zealand in 12 months and the employer is foreign with no permanent establishment in New Zealand. Without a treaty, a domestic exemption covers visits of up to 92 days in 12 months (section CW 19 of the Income Tax Act), provided the payer is not a New Zealand resident and the income is taxed in the country of residence.

A non-resident earning rent from New Zealand property declares it and pays tax on the 10.5-39% scale. Working remotely from abroad for a New Zealand employer is a separate question: the tax depends on where the work is physically performed and on the treaty with the country of residence.

Does New Zealand have a double tax agreement with Russia

On paper yes, in practice only half of one. The agreement between the governments of Russia and New Zealand was signed on 5 September 2000 and entered into force on 4 July 2003, and Inland Revenue still lists it as in force. But Russian presidential decree No. 585 of 8 August 2023 unilaterally suspended articles 5-21 and 23 of the agreement and paragraphs 2-11 of its protocol. That covers almost all the rules on rates for business profits, dividends, interest, royalties, salaries and pensions.

In practice Russian companies and banks withhold tax on payments to a New Zealand resident under the Russian Tax Code as if there were no agreement: 30% on most income of non-resident individuals, 20% on interest and royalties paid to foreign companies and 15% on dividends from Russian companies. New Zealand credits the foreign tax under its own law (subpart LJ of the Income Tax Act 2007), but only up to the New Zealand tax on the same income, so any excess paid in Russia is lost.

Inland Revenue has not published guidance on whether New Zealand still applies treaty rates to payments to Russia after the decree. Banks also screen payments to Russian recipients under New Zealand's Russia Sanctions Act 2022.

New Zealand has no tax agreements with Ukraine, Kazakhstan, Belarus, Georgia or Armenia; none of them appears on Inland Revenue's list of tax treaties. Income from those countries relies only on the domestic foreign tax credit. New Zealand has agreements with several dozen countries, including Australia, the United Kingdom, the United States, Canada, Germany, Singapore, the UAE and China.

When to file a tax return in New Zealand and what the penalties are

The New Zealand tax year ends on 31 March, and the individual income tax return (IR3) is due by 7 July. Employees with no other income do not need to file: Inland Revenue recalculates their tax automatically. A return is required for income without tax deducted at source, such as business, rental, foreign investment and crypto income.

Penalties are small in absolute terms but grow quickly in percentage terms. Inland Revenue receives data on foreign bank accounts through automatic exchange of information and, from 2027, on crypto accounts too, so undeclared foreign income is found more and more often.

Murblz specialists prepare New Zealand accounts and returns, with an hourly rate from USD 90.

Who New Zealand taxes suit and who they do not

New Zealand rewards those who bring capital rather than a salary. Four years without tax on foreign passive income and no taxes on inheritance, gifts or general capital gains make it convenient for investors living off capital and owners of businesses abroad. A high earner pays more: 39% on income over NZD 180,000 plus 15% GST on almost everything the household buys.

A detailed look at the neighbouring system is on our page about taxes in Australia.

Who it suits. Holders of foreign passive income during the first 4 years of residence. Families planning to pass assets to children: inheritances and gifts are tax-free. Company owners who want a clear system where company tax is credited to the shareholder. And remote employees of foreign companies who want to spend up to 9 months in the country without becoming resident.

Who it does not suit. Owners of a large foreign share portfolio once the transitional period ends: the FIF rules tax income not yet received. Active crypto traders: gains are taxed at up to 39%. Residents working remotely for a foreign company: their pay is taxed from the first month even as transitional residents. And anyone hoping to buy a flat before obtaining residence.

What is on the table for 2027. The general election is set for 7 November 2026, and the opposition Labour Party is campaigning on a 28% tax on gains in the value of commercial and residential property, excluding the family home and farms, for gains accrued after 1 July 2027. For now this is a campaign pledge, not law, but a second property bought for resale is worth modelling under that scenario.

Related pages: all New Zealand programmes, a personal account with a New Zealand bank, company formation abroad and taxes by country.

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