Summary
Most migrants in New Zealand are on PAYE and do not need to file an IR3 tax return — IRD auto-assesses most salary and wage earners and sends a tax assessment in May or June; you review it in myIR and confirm or correct it; if you owe tax or are due a refund, this process handles it automatically
You must file an IR3 if you are self-employed, have rental income, overseas income, or multiple income sources — the IR3 due date for the 2025-26 tax year is 7 July 2026; with a registered tax agent, this extends to 31 March 2027
New migrants to New Zealand get a 4-year transitional resident exemption on most foreign income — this is one of the most valuable tax benefits in New Zealand and applies automatically; it means most overseas investment income is not taxed in New Zealand for up to 48 months from when you became a NZ tax resident
New Zealand’s tax system is one of the simplest in the developed world. There is no capital gains tax, no inheritance tax, no wealth tax and no general gift duty. Income tax is progressive from 10.5% to 39%. The main taxes most migrants encounter are income tax (deducted through PAYE), the ACC Earner Levy and GST.
This guide covers how income tax works, who needs to file a return, and the key details every migrant in New Zealand should know.
The New Zealand tax year
New Zealand’s tax year runs from 1 April to 31 March — not the calendar year. The current tax year is 1 April 2025 to 31 March 2026.
Key dates:
- 31 March 2026 — end of the 2025-26 tax year
- May/June 2026 — IRD sends auto-assessments to most PAYE earners
- 7 July 2026 — IR3 filing deadline for self-filers
- 31 March 2027 — extended deadline if you use a registered tax agent
Income tax rates (2025-26 tax year)
New Zealand income tax is progressive — you pay a higher rate on each additional dollar as your income rises.
| Income bracket | Tax rate |
|---|---|
| NZD $0 – $15,600 | 10.5% |
| NZD $15,601 – $53,500 | 17.5% |
| NZD $53,501 – $78,100 | 30% |
| NZD $78,101 – $180,000 | 33% |
| NZD $180,001 and over | 39% |
Unlike Australia, New Zealand has no tax-free threshold — the first dollar of income is taxed at 10.5%.
ACC Earner Levy: In addition to income tax, you pay the ACC Earner Levy — 1.67% of your gross earnings (2026 rate) up to the annual maximum liable earnings cap of NZD $136,544. This covers you for accident-related injuries anywhere in New Zealand. On a salary of NZD $70,000, the levy adds approximately NZD $1,169 per year to your deductions.
PAYE — pay as you earn
Most migrants work for an employer and are taxed through PAYE — your employer deducts tax from your pay each payday and passes it to IRD. You do not need to do anything during the year to pay income tax.
To set up PAYE correctly:
- Give your employer your IRD number — without it, they must deduct tax at 45% (the no-notification rate)
- Complete an IR330 tax code declaration — this tells your employer which tax code to use; for most migrants in their main job, this is code M
Tax code M — use this for your main or only job. The code ensures the correct progressive rate is applied.
If you have a second job, use code S (secondary employment) for that employer — secondary income is taxed at a higher flat rate.
Auto-assessment — do I need to file a return?
Most PAYE salary and wage earners in New Zealand do not need to file an IR3. IRD automatically assesses your income tax at the end of the tax year using information from your employer, bank and other sources.
In May or June each year, IRD will:
- Send you an auto-assessment via myIR (log in at myir.ird.govt.nz)
- Show whether you owe additional tax or are due a refund
- Ask you to confirm or correct the information
If the auto-assessment is correct, simply confirm it in myIR. If you are due a refund, it is paid to your bank account. If you owe tax, IRD sets up a payment plan.
You must file an IR3 yourself if you have:
- Self-employment income
- Rental income (from NZ or overseas property)
- Overseas income (salary, investments, pension)
- Income from a partnership, estate or trust
- Taxable government grants or scholarships
- Certain Working for Families tax credits not already assessed
Filing an IR3 — who, what and how
Who must file
- Self-employed people (including contractors, freelancers and gig workers)
- Anyone with NZ rental income
- Anyone with overseas income while a NZ tax resident
- Anyone with income from multiple sources that IRD has not auto-assessed correctly
How to file
Online via myIR (recommended):
- Log in at myir.ird.govt.nz
- Select “File a return” and choose IR3
- Enter your income from all sources — employment, self-employment, rental, overseas, investments
- Claim any deductions (for self-employed: business expenses, vehicle costs, home office)
- The system calculates your tax — pay any balance or receive a refund
Paper IR3: Available from IRD but not recommended — processing takes longer.
Deadline: 7 July 2026 for the 2025-26 tax year. With a registered tax agent: extended to 31 March 2027.
The transitional resident exemption — one of New Zealand’s best-kept tax secrets
This is one of the most valuable tax features for new migrants and is almost unknown outside tax circles.
What it is: New migrants to New Zealand — and returning New Zealanders who have not been NZ tax residents for the previous 10 years — receive an automatic 4-year (approximately 48 months) exemption from New Zealand tax on most foreign-source income.
What it covers:
- Foreign investment income (dividends, interest, capital gains)
- Foreign rental income
- Foreign pension income
- Income that would otherwise be attributed under the Foreign Investment Fund (FIF) rules
What it does NOT cover:
- New Zealand employment income — taxable from day one
- New Zealand business income
- New Zealand rental income
How to claim it: The exemption is automatic — you do not need to apply. If it applies to you, note your transitional resident status in your IR3 if you file one, or in your auto-assessment confirmation.
Important: You only get this exemption once. It begins from the date you first became a NZ tax resident and lasts 48 months. If you leave and return, the clock does not reset.
Practical example: Roshan moves from India to Auckland in February 2026 on an AEWV. He has a rental property in Bengaluru and a portfolio of Indian mutual funds. Under the transitional resident exemption, the rental income and investment gains from his Indian assets are not subject to NZ tax until around February 2030. His NZ salary is fully taxable from day one.
Working for Families
Working for Families (WfF) is a package of tax credits for families with dependent children in New Zealand.
Who is eligible:
- Family income under approximately NZD $42,700-$110,000 (depending on number of children)
- Children under 16 (or under 19 if in full-time education)
- Permanent residents and citizens; some temporary visa holders may be eligible — check at ird.govt.nz
The three main credits:
- Family Tax Credit: up to NZD $144/week for the eldest child plus amounts for additional children
- In-Work Tax Credit: up to NZD $72.50/week per child for families where both parents work
- Minimum Family Tax Credit: a top-up for low-income working families
How to apply: Via myIR. You can receive WfF as weekly or fortnightly payments throughout the year, or as a lump sum at the end of the year.
Student loan repayments
If you have a New Zealand student loan, repayments are automatically deducted through PAYE at 12% of earnings above NZD $24,128 (the 2026 repayment threshold). Your employer handles this — you use tax code M SL instead of M on your IR330.
If you move overseas with a student loan, you must continue making repayments directly to IRD.
ACC Earner Levy
The ACC Earner Levy is not income tax, but it is deducted alongside PAYE and appears on your payslip. In 2026 it is 1.67% of gross earnings up to NZD $136,544.
ACC provides no-fault personal injury cover for everyone in New Zealand — if you are injured (at work, at home, in a car accident, playing sport), ACC covers treatment, rehabilitation and income replacement. In return, New Zealand does not allow personal injury lawsuits.
Tax refunds — how to get yours
If you have overpaid tax during the year (common if you changed jobs, worked part of the year, or had irregular income), you are entitled to a refund.
How refunds work:
- IRD’s auto-assessment in May/June calculates whether you overpaid
- Confirm the assessment in myIR — refunds are paid directly to your bank account, typically within a few days
- If you missed previous years’ returns, you can file for up to 4 years’ worth of back refunds
Key tip: Many migrants in New Zealand overpay tax and never claim the refund. Check your myIR account each year after the tax year ends.
No capital gains tax in New Zealand
New Zealand does not have a general capital gains tax. Gains on shares, investments and most assets held as an ordinary investor are not taxed. This is a significant advantage for migrants investing in New Zealand.
Exception — the bright-line test: Gains on residential property sold within 2 years of acquisition (for property acquired on or after 1 July 2024) are taxed as income at your marginal rate. This applies to overseas property owned by NZ tax residents too.
Key resources
| Resource | Link |
|---|---|
| File your IR3 return | myir.ird.govt.nz |
| Check your auto-assessment | myir.ird.govt.nz |
| Working for Families calculator | ird.govt.nz/wff |
| IR330 tax code form | ird.govt.nz/ir330 |
| Tax agent finder | taxagents.ird.govt.nz |
| IRD contact | 0800 377 774 |
FAQs (frequently asked questions)
Do I need to file a tax return in New Zealand?
Most PAYE salary and wage earners are auto-assessed by IRD and do not need to file. If you are self-employed, have rental income, overseas income or multiple income sources, you must file an IR3 by 7 July 2026 (or 31 March 2027 with a tax agent).
What is the New Zealand income tax rate?
Progressive from 10.5% (on income up to NZD $15,600) to 39% (on income above NZD $180,000). New Zealand has no tax-free threshold.
What is the transitional resident exemption?
A 4-year automatic exemption from NZ tax on most foreign income for new migrants and returning New Zealanders. Covers foreign investment income, rental income and pensions but not NZ employment income. You only get it once.
When is the NZ tax return due?
7 July 2026 for the 2025-26 tax year (1 April 2025 to 31 March 2026). Extended to 31 March 2027 if you use a registered tax agent.
Does New Zealand have a capital gains tax?
No general CGT. The bright-line test taxes gains on residential property sold within 2 years of acquisition (from 1 July 2024) at your marginal income tax rate.
How do I get my tax refund in New Zealand?
Review and confirm your IRD auto-assessment in myIR each May/June. Refunds are paid directly to your bank account within a few days of confirmation.
Related guides
- How to get an IRD number in New Zealand →
- What is KiwiSaver? A guide for migrants →
- How to open a bank account in New Zealand →
Sending money from New Zealand
Once your tax refund lands or your salary is coming in, OrbitRemit supports affordable transfers from New Zealand home.
- NZD to INR: NZD $4 flat fee (fee-free above NZD $10,000)
- NZD to PHP GCash: NZD $4 flat fee
- NZD to GBP: fee-free
- NZD to NPR: NZD $4 flat fee
- Over 85% of transfers to Asia-Pacific arrive within 2 hours
- Supervised by DIA in New Zealand (FSP7721)
This guide is for general information only and does not constitute tax or legal advice. Tax rules change — always verify at ird.govt.nz or consult a registered tax agent for your specific situation. Last updated August 2026.
Sources: IRD — Individual tax return guide IR3G 2026 (ird.govt.nz) | Lifetimes NZ — Tax in New Zealand 2026: PAYE, IR3, Working for Families (June 2026) | TaxPop — New Zealand Tax Guide for New Migrants 2026 (June 2026) | nzimmigration.info — New Zealand Tax Rates 2026 (3 weeks ago) | Kurums — New Zealand Expat Tax 2026 (3 weeks ago) | MoneyBalance — Overseas Income Tax NZ 2026 (May 2026)
