Personal Taxation

Taxes in New Zealand are collected at a national level by the Inland Revenue Department (IRD) on behalf of the Government of New Zealand.

Salaries, which are paid fortnightly, are subject to taxation deductions on the “pay-as you-earn” (PAYE) basis.

New Zealand operates a progressive tax system for individuals. This means that the amount of tax you pay is dependent on the amount of income that you earn during the financial year, with the top rate of 39% being applied to earnings over $180,000.

There is a Goods and Services Tax (15%) on most purchases and services.

The New Zealand Inland Revenue (IRD) website provides information and services related to taxes and specific social policy services – Including an Online taxation calculator.

Get an IRD number

Good to know...

Paying via card is the customary method of transaction in New Zealand, even for minor purchases. Moreover, the adoption of contactless and mobile payment systems is gaining traction, signifying a rising trend. Remarkably, New Zealand exhibits the lowest circulation of physical currency per capita amongst all member nations of the Organization for Economic Co-operation and Development (OECD).

Wages and salaries are typically remitted directly into a designated bank account. To ensure a seamless transition upon arrival, it is recommended to establish a bank account in advance. One thing to be aware of is that while you can transfer funds into a bank account set up in this way, you must first verify your personal identity before you will be able to withdraw from it. Consequently, it is advisable to check the ease of this process when selecting which bank you will like to open an account with.