Taxes in New Zealand

Taxation in New Zealand

As can be seen in the table below the New Zealand tax authority requires you to pay income tax when you earn even a low amount, however the income tax for high earners is only 33% meaning that even though low earners pay tax, the opposite is true for those in the top few tax brackets.

In addition to this New Zealand has also done away with several other complicated taxes. Key features of New Zealand’s tax system include:

• No inheritance tax;
• No general capital gains tax, although it can apply to some specific investments;
• No local or state taxes apart from property rates levied by local councils and authorities;
• No payroll tax;
• No social security tax;
• No health care tax, apart from a very low levy for New Zealand’s ‘accident compensation injury insurance scheme.

The main tax that you will pay in New Zealand aside from income tax is Goods and Services Tax (GST). This tax is equivalent to VAT in the UK and is charged at 15% on goods, services and all items sold or consumed.

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Tax returns in New Zealand

The tax year in New Zealand runs from 1 April to 31 March. It is only necessary to file a tax form if you’ve earned money that hasn’t been taxed. To do this you need to fill in an IR3 form. Often you will receive a Personal Tax Summary known as a PTS by mid-July and will therefore know how much you have been taxed. In several cases you can request a tax refund to do this you must also send off an IR3 form. This is likely to be the case if you have tax credits. Tax credits are given for:

• Donations
• Independent earners
• Income under $9,880
• Children

Taxes in New Zealand really isn’t that complicated. The important thing is to make sure that you have the right visa and then your move to New Zealand will be much easier.

Have you enjoyed this page? Then make sure that you’re prepared for your move to New Zealand by clicking here.