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Guided help articles

Guided help articles are meant to help you find your way with most tax situations, but they do not replace tax laws in New Zealand. Depending on your situation, you may want to consult a tax professional.

Am I on the right tax rate for my interest or dividends?

If you're a New Zealand tax resident, you'll pay resident withholding tax (RWT) on interest and dividends you earn from New Zealand bank accounts and investments. Your payer (bank or fund manager) deducts RWT from your interest or dividend payment before they pay you.

You need to make sure that tax on your interest and dividends is deducted at the right rate to avoid receiving an end-of-year tax bill.

From 1 April 2021 a new top tax rate of 39% has been introduced for individuals who earn over $180,000 in a year. Payers of interest, such as banks and other financial institutions, have until 1 October 2021 to have this rate available for you to use.

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