Who must file a tax return?

All residents with income above the tax-free threshold must file a return. Non-residents must file if they have New Zealand-sourced income.

What is the filing deadline?

Tax returns must be filed by July 7 following the end of the tax year on March 31.

How is foreign income taxed?

Residents are taxed on worldwide income, including foreign income, which must be declared.

Are capital gains taxable?

New Zealand does not have a general capital gains tax, but certain gains may be taxed as income.

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Rank #36

New Zealand

Australia and New Zealand • UTC+12 • Pacific/Auckland

Monthly Cost

$1,730

-21% vs USA

Internet

207 Mbps

Mobile Avg

Monthly Cost

$1,730

-21% vs USA

Internet

207 Mbps

Mobile Avg

New Zealand Personal Income Tax

New Zealand's tax system is progressive, with no capital gains tax. Residents are taxed on worldwide income, while non-residents are taxed only on New Zealand-sourced income.

Income Tax

10.5%–39%

Progressive rates

Corporate Tax

28%

Standard corporate tax rate

VAT / GST

15%

Standard GST rate

Nomad Visa

Not Available

No dedicated program

Tax System Overview

New Zealand's tax system is progressive, with residents taxed on worldwide income and non-residents taxed only on New Zealand-sourced income. There is no capital gains tax.

System Type

Progressive personal income tax

Resident Taxation

Taxed on worldwide income.

Non-Resident Taxation

Taxed only on New Zealand-sourced income.

Tax Year

April 1 – March 31

Income Tax Bands

New Zealand's progressive income tax bands based on annual taxable income in NZD (2025).

Tax Treaty

Double Taxation Agreements help avoid being taxed twice on the same income.

United Kingdom

Treaty Active

Income Covered:Dividends, interest, royalties, and employment income.

Withholding Tax Rates:Dividends 15%, interest 10%, royalties 10%.

Residency Rule:Residency determined by permanent home and 183-day rule.

Tax Credit:Foreign tax credit available to avoid double taxation.

The New Zealand-UK tax treaty prevents double taxation on income and provides reduced withholding tax rates on dividends, interest, and royalties.

Key Benefits

Prevents double taxation on income earned in both countries.
Reduced withholding tax rates on dividends, interest, and royalties.
Clarifies tax residency rules.

Totalization Agreement

These agreements coordinate social security systems to prevent double contributions.

Australia

Agreement Active

The New Zealand-Australia agreement prevents double social security contributions and allows for the combination of contribution periods.

Coverage Areas

Old-age pensionsDisability benefitsSurvivor benefits

Facts

Allows for the combination of contribution periods between New Zealand and Australia.
Prevents double social security contributions.

Other Countries with Agreements

United Kingdom

Canada

Business & Freelancing

Corporate Tax Rate

28% standard rate

VAT Registration

Compulsory if turnover exceeds NZ$60,000 annually.

Freelancer Rules

Freelancers must register for GST if income exceeds NZ$60,000.

Crypto Policy

Cryptocurrency is treated as property; gains are taxable if trading.

Frequently Asked Questions

Digital Nomad & Benefits

Visa Details

Minimum Income:N/A

Duration:Up to 9 months on a visitor visa

Renewal:Visitor visas are not renewable; must reapply

Proof of Employment:N/A

Additional Requirements:Proof of funds, return ticket

Tax Perks

No capital gains tax on personal investments.
Competitive corporate tax rate at 28%.

Filing Roadmap

Register for an IRD Number

Apply for an Inland Revenue Department (IRD) number, which is required for tax purposes.

Gather Income Information

Collect all income statements, including employment, rental, and investment income.

File Your Tax Return

Submit your tax return online via the Inland Revenue website by the July 7 deadline.

Pay Any Tax Due

Ensure any tax owed is paid by the due date to avoid penalties.