Paying taxes in New Zealand
The New Zealand Government uses the taxes it collects to fund services that benefit all New Zealanders. All taxes are paid to Inland Revenue — the government's tax department.
Types of tax
Individuals and businesses in New Zealand must pay tax on their income. The government also collects tax from the sale of some goods and services.
- Income tax — tax on what you earn — is commonly known as Pay-As-You-Earn or PAYE.
- Goods and services tax — tax on things you buy — is commonly known as GST.
There are other types of taxes too. You can find out what they are on the Inland Revenue website.
New Zealand's tax system does not have:
- inheritance tax
- general capital gains tax
- local or regional taxes (property owners do have to pay 'rates' to councils and local authorities)
- payroll tax
- social security tax
- general healthcare tax.
Getting an IRD number
If you earn income in New Zealand, you will need an Inland Revenue number (called an IRD number). This is your tax number. If you do not have an IRD number, you will be taxed at the highest possible rate.
IRD numbers for individuals — Inland Revenue
Process for applying for an IRD number for migrants
If you have recently arrived in New Zealand, you may be able to apply for your IRD number through IR's 'new arrival' process, which makes providing documentation easier. If you have not arrived recently, you may need to apply through their 'living in New Zealand and not a new arrival' process.
You can also apply for an IRD number from overseas.
New arrival to New Zealand — IRD number application — Inland Revenue
Note
To open a bank account in New Zealand, you need an IRD number.
If you are a new migrant, you may not have to pay tax on most of your overseas income for your first 4 years living here. This means you may only have to pay income tax on what you earn in New Zealand.
For more information visit Inland Revenue's website.
You might be a tax resident in New Zealand as well as somewhere else. If both countries tax their residents' worldwide income, you could be taxed twice on the same income.
To limit that possibility, New Zealand provides credits for tax paid overseas on income that is also subject to New Zealand tax.
New Zealand also has agreements with many of our main trading and investment partners that stop double taxation.
Double tax agreements — Inland Revenue
Find out if you can work remotely for an overseas business or client while you are visiting New Zealand — and if you need to pay tax while you are here.
Tax rates
New Zealand's tax system is highly ranked on the International Tax Competitiveness Index.
International Tax Competitiveness Index — Tax Foundation
Income tax for individuals
New Zealand's personal income tax rates depend on your income.
Tax rates for individuals — Inland Revenue
Income tax for businesses
If you are buying or starting a business, make sure you know your tax obligations.
Inland Revenue has tax information and videos for businesses. They also run regular workshops for business owners.
Income tax for businesses and organisations — Inland Revenue
GST
GST is a flat rate tax. It is added to the price of most goods and services when you buy them, including some you buy from overseas suppliers.
Things that do not have GST applied include residential rents, airfares for overseas travel, financial services and mortgage payments.
Businesses can claim back GST that they have had to pay for goods and services.
GST (goods and services tax) — Inland Revenue
Filing a tax return
Most new arrivals will need to file a tax return in their first year here.
Non-residents, like people on work visas, may need to file a tax return at the end of the tax year or when they leave New Zealand.
There are other situations when you must file a tax return.
Inland Revenue has information about migrants' tax obligations.
Income tax for individuals — Inland Revenue