Independent earner tax credit (IETC)

Income tax Dates

FEB 7

End-of-year income tax and Working for Families bills are due, unless you have an extension of time to file your income tax return.
FEB 28

Provisional tax payments are due if you have a March balance date and use the ratio option.
MAR 31

Income tax returns are due if you have an extension of time

All Income tax dates

New Zealand tax residents earning between $24,000 and $48,000 in a tax year qualify for 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.

Your gross income counts

The IETC is worked out on your gross income. Your gross income is your income before tax is deducted or paid.

If you’re an IR3 filer your gross income is your income after expenses and losses are deducted.

How much you can get

If your gross income 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.

How to get the IETC

The way you get the IETC depends on where your income comes from. The following pages explain how you can get it in different situations.