Income tax in New Zealand 2026

Tax starts at 10.5% from the first dollar — there is no tax-free allowance — and climbs to 39% above NZD 180,000, but nothing else piles on: no social security, no state or local income taxes.

Most employees never file: pay-as-you-earn withholding plus the pre-populated auto-assessment settles the year automatically.

At a glance

top rate: 39% above NZD 180,000
entry band: 10.5% on the first NZD 15,600
tax year basis: 1 April – 31 March
filing deadline: 7 July for filers; terminal tax by 7 February
residency basis: Worldwide if you have a permanent place of abode or 183+ days in 12 months
regime flag: 48-month foreign-income exemption for new migrants and long-returning citizens

Rates

Income tax scale (2026/27, unchanged since 31 July 2024)

Taxable income (NZD)	Rate on this band	Note
0 – 15,600	10.5%
15,601 – 53,500	17.5%
53,501 – 78,100	30%
78,101 – 180,000	33%
Over 180,000	39%

Marginal rates apply within each band.

Thresholds & allowances

Family tax creditNZD 7,921 / 6,454 a year
Eldest child / each other child (from 1 April 2026); abates at 27.5% above NZD 44,900 of family income
In-work tax creditNZD 5,070 a year
For working families up to 3 children, plus NZD 780 per further child
Best Start creditUp to NZD 4,041 a year
Per child under 3 (from 1 April 2026); income-tested from birth for children born after that date
FamilyBoost childcare refund40% up to NZD 1,560 a quarter
Of early-childhood fees for households under NZD 180,000 a year; gone by NZD 229,144
Independent earner creditNZD 520
For incomes NZD 24,000 – 70,000 without benefits or credits; abates over NZD 66,000
Donations credit33.33% of gifts
Cash donations to approved charities, capped at your taxable income

Residency

Residency trigger

A permanent place of abode makes you resident regardless of day counts; otherwise 183 days' presence in any 12 months does it, and residence ends only after 325 days' absence.

Non-resident treatment

Non-residents pay only on New Zealand-source income; visiting experts and sub-92-day workers taxed at home are exempt, and non-resident withholding covers passive income.

Notes

No deductions exist against employment income — not even work clothing; the trade-off is the simple auto-assessed system.
Fringe benefits are taxed on the employer through fringe benefit tax, never on the employee.
The 48-month transitional resident exemption covers most foreign income (not foreign employment earnings for services performed after arrival) for new migrants and citizens returning after 10+ years.
Look-through companies (5 or fewer shareholders) pass profits straight to owners' marginal rates.
Government superannuation from age 65 is taxable like salary; approved-fund pension payouts are tax-free.
Directors' fees carry a 33% non-final withholding; no-declaration employees suffer 45%.

FAQ

What are New Zealand's tax rates?

10.5%, 17.5%, 30%, 33% and 39% — the top rate from NZD 180,000; there's no tax-free threshold but also no social security charges.

Do I need to file a return?

Usually not — pay-as-you-earn withholding plus the pre-populated auto-assessment settles most employees' tax; filers lodge by 7 July with terminal tax due 7 February.

What is the new-migrant exemption?

Transitional residents — new migrants and returning New Zealanders away 10+ years — pay no tax on most foreign income for 48 months after arrival.

Figures: tax year 2026/27 (April–March), compiled from public sources. Not tax advice.

See income tax in other countries

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