Are you paying the right amount of tax?

If you pay tax in New Zealand, it pays to be aware of the different tax rates, and to make sure you provide the correct tax code to the IRD.

If you earn salary or wages, your tax is deducted automatically based on your income and the tax code you have provided to the IRD. This is known as PAYE (Pay As You Earn).

New Zealand has the following income tax rates:

  • For income over $70,000 = 33%
  • For income between $48,001 to $70,000 = 30%
  • For income between $14,001 to $48,000 = 17.5%
  • For income between $0 to $14,000 = 10.5%

When you start a new job, your tax code and IRD number is provided to your employer using an IR330 form. The form includes a chart for figuring out the correct tax code for you.

If your tax code changes due to a change in your situation for example if you no longer have a student loan, you will need to let your employer know and complete a new IR330 form.

Business and corporate tax

All businesses and corporates in New Zealand are taxed a flat 28%. As well as this, Goods and Service Tax (GST) of 15% is applied to almost all goods and services.

Business tax is complex, and it pays to work with  chartered accountants and business advisors, to help you navigate tax and make sure you are only paying what you need to.