New Zealand Tax Rates for 2026/27

New Zealand Personal Income Tax Rates - 2026/27

New Zealand uses progressive income-tax rates. The rate applies only to the portion of taxable income that falls within each bracket. The current rates applying from 1 April 2025 continue for the 2026/27 tax year.

PAYE and Secondary Income Tax

Employers generally deduct income tax from salary and wages through PAYE. The amount deducted depends on the employee's tax code and income. Employees with more than one source of salary or wage income may need a secondary tax code.

Resident Withholding Tax on Interest and Dividends

Resident withholding tax (RWT) is deducted at source from many New Zealand interest and dividend payments. For individuals, the appropriate interest RWT rate depends on the taxpayer's income and the rate selected or notified to the payer. If no rate is selected, Inland Revenue states that a default rate of 33% generally applies.

Dividends and unit-trust distributions are generally subject to RWT at 33%, although imputation credits and other rules can affect the final tax position. Portfolio investment entities use separate prescribed investor rate rules.

ACC Earners' Levy - 2026/27

Employees and other earners contribute to New Zealand's accident compensation system through the ACC earners' levy. Inland Revenue collects this levy as part of PAYE for employees.

The underlying confirmed ACC earners' levy rate excluding GST is $1.52 per $100 of liable earnings; the Inland Revenue PAYE rate including GST is $1.75 per $100.

Social Security and Insurance

New Zealand does not operate a separate broad social-security payroll tax comparable with systems used in many countries. Major public services and social programmes are principally funded through general taxation. ACC provides statutory accident cover, while private health insurance is optional.

New Zealand Company Income Tax Rate

The standard New Zealand company income-tax rate is 28% of taxable income. The 28% rate applies to companies for the 2011/12 and subsequent income years and remains the standard company rate.

Goods and Services Tax (GST)

New Zealand GST is charged at a standard rate of 15% on most goods and services, including many imports. Some supplies are zero-rated or exempt under specific provisions.

Capital Gains and Property Sales in New Zealand

New Zealand does not have a comprehensive standalone capital gains tax. However, gains can be taxable as income under specific provisions, including where property was acquired with an intention or purpose of disposal, where a taxpayer carries on dealing, development or building activities, and under the residential property bright-line test.

For current property disposals, the bright-line test generally applies when the property's bright-line end date falls within 2 years of its bright-line start date, subject to statutory exclusions and rollover-relief rules.

New Zealand Tax Year and Filing

For most individuals, the New Zealand income year runs from 1 April to 31 March. Inland Revenue automatically calculates income tax for many individuals whose income information is already reported to it, while taxpayers with other income or filing obligations may need to submit an individual income tax return.

Businesses and companies may have different return, provisional-tax and terminal-tax obligations depending on balance date, filing status and whether a tax agent is used.

Important Note

Tax treatment depends on residence, income type, tax code, deductions, credits, investment structure, property facts, treaty provisions and other circumstances. Check the current Inland Revenue guidance and legislation for the relevant transaction and income year.