Cost of living questions are very difficult to answer, because so much depends on an individual’s or family’s likes and dislikes and unique set of circumstances.
You will find that because of New Zealand’s geographical location, the cost of shipping etc makes some imported things more expensive in New Zealand than they are in the US, for example gasoline (petrol), new cars and computers.
Other things are less expensive. For example, because the government picks up the tab for some of the most expensive aspects of healthcare, healthcare is less expensive and medical insurance, if you choose to have it, is also a lot less expensive.
If you are purchasing property and you come from a larger US city, you will find that your housing dollar goes a lot further in New Zealand, even with the rising New Zealand dollar.
When trying to compare cost of living, some things to remember are:
- The New Zealand goods and services tax (GST) of 12.5% is included in the price of items on the shelf. So, unlike US sales taxes that are added on at the cash register, what you see on a New Zealand price tag is what you pay. The price does not go up at the cash register.
- There is no tipping in New Zealand, so while prices on menus may sometimes look higher, you do not have to add 15-20% to the bill when it arrives.
- Due to the fact that there are few deductions, you are probably going to pay more income tax in New Zealand. That said, there is only the national income tax. There are no state or local income taxes; there are no social security taxes for employees or employers; there is no capital gains tax on property; and there is no inheritance tax.
Interested in more information? Go to our
Lifestyle section.