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Individual income tax
Tāke moni whiwhi mō te takitahi

Understanding your personal tax summary (PTS) calculation


Your personal tax summary (PTS) shows your income and the amount of tax your employer has paid to us for the income year. It tells you if you'll:

  • get a refund, or
  • need to pay more tax.

This table explains the information on the first page of your PTS and how it is calculated.

On your PTS... Tell me more ...
Income from salary, wages, benefits or taxable pensions

This is your income as sent to us each month, by your employer or payer. From 1 April 2017 this will include the value of shares received below market value.

Income from interest and dividends and taxable Māori authority distributions Your bank statement or interest certificate will show the amount of interest you received, and your Māori authority distribution statement will show the amount of taxable distributions received.
Total gross income This is your income from salary, wages, benefits or taxable pensions, plus your income from interest, dividends, Māori authority distributions and any ESS benefits. Your gross income is your income before tax has been deducted from it.
Expenses claimed

You can claim the following expenses on your personal tax summary:

  • a fee charged by someone for completing your tax return
  • commission on interest or dividend income (but not bank fees)
  • interest on money you borrowed to buy shares or to invest, as long as the investment will produce taxable income
  • premiums on loss of earnings insurance, provided the benefit from the insurance policy is taxable income.
Taxable income Your expenses are subtracted from your total gross income, to make your taxable income.
Tax on taxable income

We calculate how much tax should have been paid on your taxable income.

PAYE rates (excluding ACC earners levy) for calculating income tax for the 2012-13 income year (1 April 2012 to 31 March 2013)

Income thresholds Rates
Income to $14,000 10.5%
$14,001 to $48,000 17.5%
$48,001 to $70,000 30%
$70,001 and over 33%
Tax credits

A tax credit is a reduction in the amount of tax you need to pay. There are three types of tax credits:

  • tax credits for transitional circumstances (formerly the income under $9,800 tax credit) for the 2012 and previous tax years
  • tax credits for children for the 2012 and previous tax years, and
  • independent earner tax credit for the 2010 tax year and onwards.
Tax on taxable income after tax credits This is your income tax credit subtracted from your tax on taxable income.
Total tax paid This is the tax you paid on your income (given to us by your employer or payer), plus the tax you paid on your interest, dividends or taxable Maori authority distributions.
Tax to pay / Total amount of tax refund

This is the difference between your tax on taxable income after the tax credit, and your total tax paid.

  • If your total tax paid is bigger, you'll have a tax refund.
  • If your total tax paid is smaller, you'll have tax to pay.
Working for Families Tax Credits underpayment / overpayment If you have applied for Working for Families Tax Credits, this shows if you've been underpaid and have a credit, or if you've been overpaid and need to pay some back.

What happens next

If you're registered for myIR Secure Online Services you can make changes and confirm your PTS online, or you can call us on 0800 227 774, and we'll make the changes over the phone.

This table explains what to do if your PTS shows that you have tax to pay or are due a refund.

If you have tax to pay... If your refund is less than $600... If your refund is more than $600...

it must be paid by:

  • 7 February if you don't have a tax agent, or
  • 7 April if you have a tax agent and an extension of time.

The due date will show on your PTS.

Note: If you owe $20 or less, it will be written off. You don't need to do anything.

we'll pay it within 15 days of sending your PTS to you. you need to confirm your PTS:

Transferring your refund

You can choose to transfer your refund to another person's income tax account, or you can transfer it to another tax type, such as your student loan. You can request a transfer by:

  • completing the slip at the bottom of the first page of your PTS (for transfers to another person's income tax account), or
  • calling us on 0800 227 774, or
  • writing a note with the transfers you want, attaching it to your PTS and sending it back to us.

Find out more

Next steps