Tax rates and codes
Tax rates are different for individuals and companies. Rates can also change if legislation changes.
Have you been contacted by Inland Revenue about your tax code, or do you need to work out what tax code you should be using? Use our decision tree to work out your tax code.
Generally if you have more than one job, you should use a secondary tax code for all jobs other than your main job. If you have a student loan, you should use a secondary tax code that includes SL. Find out more about secondary and special tax codes.
Your tax code is what decides how much tax is deducted from your income. The tax code that you will need to use depends on how many sources of income you have, and whether you have a student loan.
In a partnership, two or more people run a business together. Companies with five or fewer shareholders can elect to be a LTC. Shareholders of a look-through company (LTC) are liable for tax upon the company's profit, as well as being able to offset the company's losses against their other income.
A company is a formal and legal entity in its own right, separate from its shareholders with its own unique tax obligations.
If a company’s total expenses exceed its total income, it will generally have a loss for tax purposes. Companies in a loss position do not have to pay income tax. Unless the company is a loss attributing qualifying company, the company will not be able to pass this loss to shareholders who are individuals.
Read the previous years' income tax rates and ACC earners' levy rates.
A list of current income tax rates including and excluding earners' levy for individuals.
In general the initial amount of money you put into a trust is not taxed. Find out more here about taxing trusts and trustees.
A sole trader is a person trading on their own.
A non-profit organisation is any society, association or organisation that is not carried on for the profit or gain of any member, and has rules that do not allow money, property or any other benefits to be distributed to any of its members.
Date published: 23 Nov 2004