The Individual Income Tax rates in New Zealand, for the period April 2012 to March 2013, are as follows:
- Up to $14,000 – 10.5%
- $14,001 to $48,000 – 17.5%
- $48,001 t0 $70,000 – 30%
- $70,001 and over – 33%
Everyone who earns an income in New Zealand must pay income tax. Taxes are taken on a straight percentage basis. If you have a job in New Zealand, your employer is required to make the deduction for you. In addition to paying income tax, everyone is required to pay an additional ACC earner’s levy which is charged as a % of your total income. At the time of writing this guide, the ACC earner’s levy rate is 1.7% up to a maximum payable amount of $1934.05.
The end of the New Zealand financial/tax year is March 31st. If you have additional income that has not already had taxes deducted by an employer, or have losses or other financial complexities, you must file a tax return by July 7th. This can be performed online and if you are due a rebate, the NZ IRD are very efficient at repaying. If you have no additional complexities, you do not need to file a tax return, however, many people do so in order to ensure that the tax deducted from their salaries has been done so correctly. Quite often, those on PAYE receive a tax refund due to miscalculations by employers.
The following countries have arrangements with New Zealand to avoid double-taxation:
Australia, Austria, Belgium, Canada, Chile, China, Czech Republic, Denmark, Finland, Fiji, France, Germany, India, Indonesia, Ireland, Italy, Japan, Korea, Malaysia, Mexico, Netherlands, Norway, Philippines, Poland, Russian Federation, Singapore, South Africa, Spain, Sweden, Switzerland, Thailand, Taiwan, United Arab Emirates, United Kingdom and the United States of America.
The New Zealand Inland Revenue Department website if very useful if you require further information about the current Individual Income Tax rates.
You can access all New Zealand government tax information, including business and individual tax questions, at the Inland Revenue website at http://www.ird.govt.nz.