Ngā whiwhinga tāke kaiwhiwhi motuhake (IETC) Independent earner tax credit (IETC)

If you're a New Zealand tax resident and you earn between $24,000 and $48,000 in a tax year, you might be able to get the independent earner tax credit (IETC).

Your type of income counts

You can get the IETC on income from:

• salary or wages
• ACC compensation payments
• paid parental leave
• investments
• self-employment
• other types of business income.

You cannot get the IETC if:

• you or your partner are entitled to Working for Families Tax Credits
• you receive an income-tested benefit
  
• you receive New Zealand Superannuation
• you receive a Veteran’s Pension
• you receive an overseas equivalent of any of the above.

IETC is worked out on whole months. If you receive any of the above payments at any time during a month, you will not be entitled to IETC for that whole month. 

How much you can get

If your income (before tax) in the tax year is between:

• $24,000 and $44,000 – you get $10 per week
• $44,001 and $48,000 – your entitlement reduces by 13 cents for every dollar you earn over $44,000.

Your before-tax income does not include any losses you may have brought forward from previous years.