For individuals & families: Travelling to and from New Zealand
People moving to New Zealand for the long term
This information may affect you if you're thinking about moving to New Zealand and staying here for the long term. See also the "People visiting New Zealand for a short term" page in this section for tax information for short-term visitors.
Paying tax on salary or wages
To receive income from employment (salary or wages) you need an IRD number. If you don't have a New Zealand IRD number, you need to fill in an IRD number application - individual (IR595) form and follow the instructions on the form. We'll send you your IRD number within 8-10 working days of receiving your completed application form. You can start work without your IRD number but you'll need to give it to your employer as soon as you receive it from us.
Once you have an IRD number, you'll need to fill in a Tax code declaration (IR330) form and give this to your boss. This will tell them the correct amount of tax to take out of your pay.
The New Zealand tax rates for the period 1 April 2008 to 31 March 2009 are:
- 13.75 cents in every dollar for income up to $9,500
- 16.75 cents in every dollar for income from $9,501 to $14,000
- 21 cents in every dollar for income from $14,001 to $38,000
- 27 cents in every dollar for income from $38,001 to $40,000
- 33 cents in every dollar for income from $40,001 to $60,000
- 36 cents in every dollar for income from $60,001 to $70,000
- 39 cents in every dollar for income of $70,001 or above
KiwiSaver - New Zealand's work-based savings initiative
Since 1 July 2007, most New Zealand residents and people entitled to be in NZ indefinitely (who are 18 years or older) are automatically enrolled in KiwiSaver when they start a new job.
KiwiSaver is voluntary - you can opt out any time from the end of week 2 to week 8 of starting your employment. See the KiwiSaver website for more information.
Paying tax on income from rent or business
When you receive rental or business income, you need to:
- keep records
- fill in an Individual tax return (IR3) every year.
See our business section for more detail about the tax you must pay and the expenses/deductions you can claim when you run a business in New Zealand.
Taking out a student loan?
If you've taken out a student loan to cover your study costs and are living in New Zealand, you must start repaying your loan when your income is more than NZ$18,148. Find out more in the student loans section under 'individuals and families'.
Are you entitled to Working for Families Tax Credits?
Working for Families Tax Credits (formerly family assistance) is financial help for families who have children aged 18 years or under, who are financially dependent. The amount of Working for Families Tax Credits you get depends on:
- how many children aged 18 years or younger you have in your care
- how much you and your partner earn
- where you get your income from (eg employment, self employment or a benefit).
The four kinds of Working for Families Tax Credits are:
- family tax credit, paid to low and middle-income families for each child who is aged 18 years or younger
- in-work tax credit, a payment for families who work a minimum number of hours each week
- minimum family tax credit, to bring a family's income up to at least $22,645 (before tax) a year. To receive this assistance, at least one parent in the family must be working for salary or wages
- parental tax credit, for the first 56 days of a baby's life.
Date published: 28 May 2008
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