You can claim 33.33 cents for every dollar you donated to charities or similar organisations.
You can only claim on donations that added up to the same amount or less than your taxable income during the tax year.
Who can claim
You can claim donation tax credits if you:
- are claiming as an individual and not on behalf of a trust, partnership or company
- were a New Zealand tax resident at any time during the tax year (1 April to 31 March).
What you can claim for
You can claim tax credits for donations of $5 or more when the donation:
- was to an approved organisation
- did not provide any direct benefit to you or your family.
Donations to schools
You can claim for donations to most schools and parent-teacher associations.
You cannot claim for:
- tuition fees
- private school fees
- exam fees
- attendance dues
- tertiary education fees
- parent-teacher association membership fees
- costs for a student doing a voluntary activity which is not part of the school curriculum
- costs of materials for something a student made at school and took home, such as something made in a woodwork class.
How much you can claim
The total you can claim in one tax year is the lesser of:
- 33.33% of your total donations
- 33.33% of your taxable income.
If your total donations were more than your taxable income you can share your tax credit with your spouse or partner. You would claim up to your income amount and your spouse/partner would claim the rest.
Sharing your tax credit
When you submit your donation receipt in myIR, let us know how much of it you want to allocate to your spouse/partner.
We will allocate the amount to them. Your spouse/partner does not have to submit the receipt themselves.
You can do this even if the receipt is in your name only.
4 year limit
You can submit a receipt for a donation at any time within 4 tax years of the date of the donation. Any credit you are due will apply to the tax year the donation was made, not the year you submitted the receipt.
What needs to be on your receipt
You need a receipt for every donation you want to claim for.
The receipt needs to:
- be in your name or your spouse or partner's name
- show the amount and date of the donation
- clearly state that it's for a donation
- be signed by an authorised person
- be on the organisation's letterhead or show its name and official stamp
- show the organisation's IRD number and/or charities services number
- show the word 'copy' or 'replacement' if it's a replacement receipt.
If you want to claim for a donation of $5 or more made over the phone you need a receipt from the approved organisation. A copy of your phone bill is not a receipt.
Other ways to donate
You can ask your employer or payer to deduct donations from your pay and pass them onto charities or similar organisations. We call this payroll giving.
For every dollar you donate you get 33.33 cents back as a tax credit. The credit reduces the amount of PAYE or withholding tax you pay.