Tax system in New Zealand
New Zealand tax residents are generally taxed on worldwide income, whether or not overseas income is brought into New Zealand. New migrants and returning residents may qualify for a transitional-resident exemption on much overseas investment income for about four years.
Personal income tax is progressive from 10.5% to 39% for income earned from 1 April 2025. Employees also usually pay the ACC earners' levy through PAYE; for 2026/27 it is 1.75% on earnings up to NZD 156,641.
Most companies pay 28% income tax. New Zealand uses dividend imputation, so company tax can be represented by imputation credits when profits are distributed to resident shareholders.
New Zealand has no general capital-gains tax, but gains can be taxable as income when property was acquired with an intention to resell, under other land-sale rules, or under the two-year bright-line test for residential land.
The wider system includes 15% GST, PAYE, ACC levies, fringe benefit tax, employer superannuation contribution tax, foreign investment fund rules, excise duties and local-authority rates.
Tax rates at a glance
- Personal income tax
- 10.5% - 39%From 1 April 2025
- Wealth tax
- 0%
- Inheritance tax
- 0%
- Capital gains tax
- No broad standalone tax
- Corporate tax
- 28%
- Dividend tax
- Marginal + imputation
- GST
- 15%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
EmployeesExpatsOperating companiesFamiliesProperty owners
Watch out for
- New Zealand does not have a tax-free personal allowance. The first dollar of ordinary income is within the 10.5% band, although credits and deductions can affect the final result.
- No broad CGT does not make every investment gain tax-free. Property intention, land-trading, share-trading and other revenue-account rules can turn a gain into taxable income.
- A New Zealand resident can be taxed on overseas investments through the FIF regime even when no dividend or sale proceeds were received. Individuals generally have a NZD 50,000 cost threshold for many FIF interests.
- The ACC earners' levy is separate from income tax, while KiwiSaver deductions and employer contributions affect payroll cashflow.
- GST registration is generally required when taxable-activity turnover reaches NZD 60,000 in the relevant 12-month period, or when GST is added to prices.
Frequently asked questions
Is New Zealand a high-tax country?
It is a medium-to-high tax country for employees and high earners. The top personal rate is 39% before the ACC earners' levy, while companies generally pay 28% and GST is 15%.
Does New Zealand tax worldwide income?
Generally yes for New Zealand tax residents. A transitional-resident exemption can shelter much overseas investment income for around four years for eligible new or returning residents.
Does New Zealand have capital gains tax?
There is no broad standalone capital-gains tax, but some gains are taxed as income under property, trading, financial-arrangement and other revenue-account rules.
Does New Zealand have wealth or inheritance tax?
New Zealand has no general annual net wealth tax and no current inheritance or estate duty. Income from inherited assets and taxable gains on later sales can still be taxed.