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Dividend tax in New Zealand 2026
Dividends join your income at marginal rates, but New Zealand's imputation system attaches credits for the 28% company tax already paid — a 33%-bracket shareholder tops up only about 5 points.
Resident withholding tax of 33% applies at source on dividends, fully creditable in the wash-up.
At a glance
- top rate
- 39% marginal, less imputation credits
- entry band
- 10.5% for low earners — credits can exceed the tax
- tax year basis
- 1 April – 31 March
- filing deadline
- Auto-assessed for most; 7 July for filers
- residency basis
- Residents: worldwide dividends (foreign ones without imputation credits)
- regime flag
- Excess imputation credits carry forward — not refundable
Rates
How dividends and interest are taxed (2026/27)
| Rate | Base | Applies to |
|---|---|---|
| Marginal rates less imputation credits | Grossed-up dividend | New Zealand company dividends |
| 33% | Gross | Resident withholding tax on dividends — creditable |
| 10.5% – 39% (elected) | Gross | Resident withholding tax on interest, matched to your marginal rate |
| 45% | Gross | Interest and wages where no tax file number is provided |
Residency
Residency trigger
Elect your withholding rate on interest to match your bracket; dividends are withheld at 33% regardless and squared up at assessment.
Non-resident treatment
Non-residents face 30% withholding on dividends (15%, 5% or 0% by treaty; 15% when imputation credits attach) and 15% on interest — or 0% via the approved-issuer levy route.
Notes
- Imputation credits are capped at the company tax actually paid — unimputed dividends bear full marginal rates.
- Excess credits carry forward but are never refunded in cash.
- Foreign dividends carry no imputation credits — only ordinary foreign tax credits.
- Portfolio investment entities (managed funds) tax investors at capped rates and stay outside the annual return.
FAQ
How are dividends taxed in New Zealand?
At your marginal rate (up to 39%) on the grossed-up amount, minus imputation credits for the 28% company tax — so the real cost for a 33% taxpayer is around 5–7 points.
What withholding applies to interest?
You elect a rate matching your bracket (10.5%, 17.5%, 30%, 33% or 39%) — with a punitive 45% if you don't supply your tax file number.
Figures: tax year 2026/27 (April–March), compiled from public sources. Not tax advice.