Skip to main content

2023 Income tax assessments | From now until the end of July we’re issuing income tax assessments. Most people will receive theirs by 10 June. Timelines at the end of the tax year.

Inland Revenue Inland Revenue
  • About us
    • About us
    • IR careers
  • News
    • Media releases
    • Updates
    • Subscribe
    • Seminars
  • Related Websites
    • Tax Technical
    • Tax Policy
    • International
  • Contact us
    • Contact us
    • Media queries
    • Tax Technical queries
    • Tax Policy queries
  • English
Register myIR login
myIR login
Individuals and families Ngā tāngata me ngā whānau
  • IRD numbers Ngā tau IRD
  • Income tax for individuals Te tāke moni whiwhi mō ngā tāngata takitahi
  • File my individual tax return Te tuku i tētahi puka tāke takitahi
  • Support for families Ngā tautoko i ngā whānau
  • KiwiSaver Poua he Oranga
  • Student loans Student loans
  • Self-employed Mahi ā-kiri
  • More... Tāpiri atu…
Business and organisations Ngā pakihi me ngā whakahaere
  • Income tax Tāke moni whiwhi mō ngā pakihi
  • Employing staff Te tuku mahi ki ngā kaimahi
  • KiwiSaver for employers Te KiwiSaver mō ngā kaituku mahi
  • Goods and services tax (GST) Tāke mō ngā rawa me ngā ratonga
  • Non-profits and charities Ngā umanga kore-huamoni me ngā umanga aroha
  • International Tāwāhi
  • More... Tāpiri atu…
Intermediaries and others Ngā takawaenga me ētahi atu
  • Tax agents Ngā māngai tāke
  • Bookkeepers Te kaikaute
  • PAYE intermediaries Ngā takawaenga PAYE
  • Payroll bureaus Ngā tari utu ā-rārangi
  • Digital service providers Ngā kaiwhakarato pūmanawa rorohiko
  • More... Tāpiri atu…
About us
  • About us
  • IR careers
News
  • Media releases
  • Updates
  • Subscribe
  • Seminars
Related Websites
  • Tax Technical
  • Tax Policy
  • International
Contact us
  • Contact us
  • Media queries
  • Tax Technical queries
  • Tax Policy queries
English
Register
myIR login
Inland Revenue
Home
Individuals and families Ngā tāngata me ngā whānau
Popular pages Ngā wharangi rongonui
Cost of Living Payment Utu mō te utu oranga IRD numbers Ngā tau IRD File my individual tax return Te tuku i tētahi puka tāke takitahi Support for families Ngā tautoko i ngā whānau Managing my tax Te whakahaere i taku tāke
More individuals and families
Familes Ngā whānau
Working for Families Working for families Child support Te tautoko tamariki Paid parental leave Te utu tiaki pēpi
Property and Trusts Ngā wharangi rongonui
Trusts and estates Ngā rōpū kaitiaki me ngā rawa tuku iho Property Ngā rawa
Individuals Ngā tāngata
Income tax for individuals Te tāke moni whiwhi mō ngā tāngata takitahi Non-residents Ngā kainoho-tāwāhi Self-employed Mahi ā-kiri Kiwisaver for individuals Kiwisaver mā te tangata takitahi Student loans Ngā pūtea taurewa ākonga Cryptoassets for individuals Ngā rawa whiti-rangi mā te tangata takitahi Unclaimed money
Situations Ngā āhuatanga
I am going overseas Kei te haere ahau ki tāwāhi I received an income tax assessment I whiwhi i ahau tētahi aromatawai tāke moni whiwhi I'm struggling to file and pay my tax
More situations
Business and organisations Ngā pakihi me ngā whakahaere
Popular pages Ngā wharangi rongonui
Covid-19 Businesses and organisations KOWHEORI-19 Ngā pakihi me ngā whakahaere File a companies income tax return - IR4 Te tuku i tētahi puka tāke moni whiwhi kamupene - IR4 Not-for-profits and charities PAYE calculator to work out salary and wage deductions Property Ngā rawa IRD numbers Ngā tau IRD
More business and organisations
Income tax Te tāke moni whiwhi
Types of business income Ngā momo moni whiwhi pakihi Tax rates for businesses Ngā pāpātanga tāke mō te pakihi Balance dates Ngā rā mutunga tau pūtea
GST Tāke hokohoko (GST)
Charging GST Te uta i te tāke hokohoko Claiming GST Te kerēme tāke hokohoko
Employing staff Te tuku mahi ki ngā kaimahi
Register as an employer Te rēhita hei kaituku mahi Paying staff Utu kaimahi Payday filing Te tāpaetanga rā utu Deductions from income Ngā tangohanga mai i ngā moni whiwhi Kiwisaver for employers Te KiwiSaver mō ngā kaituku mahi
International Tāwāhi
International tax for business Te tāke aowhānui mō ngā pakihi
Situations Ngā āhuatanga
I am starting a new business Kei te tīmata au i tētahi pakihi hou I am going to employ someone Kei te tuku mahi ahau ki tētahi tangata My business is making a loss Kei te hapa taku pakihi
More situations
Intermediaries and others Ngā takawaenga me ētahi atu
Intermediaries Ngā takawaenga
Becoming an intermediary Te tū hei takawaenga Getting authority to act Te whiwhi whakamanatanga Executive office holders Ngā kaipupuri tūnga whakahaere Linking client accounts Te honohono pūkete kiritaki Nominated person Te tangata kua whakaingoatia Tax pooling Te whakarōpū tāke Gateway services
More intermediaries and others
Tax agents Ngā māngai tāke
Agents answers Ngā Whakautu Māngai Tax agent status Te tūnga māngai tāke Extension of time arrangements Te whakaroa i ngā whakaritenga wā Managing consolidated groups Te whakahaere rōpū tōpū Income tax for individual clients of tax agents Te tāke moni whiwhi mā ngā kiritaki takitahi a ngā takawaenga News updates for tax agents
More tax agents
Digital service providers Ngā kaiwhakarato ratonga matihiko
Getting started guide About the developer portal Mō te tomokanga kaiwhakawhanake Gateway services architecture Te hanganga ratonga tomokanga Services catalogue Te putumōhio ratonga
More digital service providers
Roles Ngā tūranga
Tax agents Ngā māngai tāke Bookkeepers Ngā kaikaute PAYE intermediaries Ngā takawaenga PAYE Payroll bureaus Ngā tari ripanga utu kaimahi Other representatives Ētahi atu māngai
Search tips

Te moni whiwhi whare rēti me te utu tāke Residential rental income and paying tax on it

Property
Property
  • Renting out residential property
    • Tax by rental property type
    • GST and renting out residential property
    • Residential rental income and paying tax on it
      • Pay tax on your rental income
      • Rules for working out rental income and expenses
      • Property interest limitation rules
      • Who pays tax on rental income
      • Rental property expenses
      • Rental expense records
    • Residential rental property deductions

Generally, the payments you get from renting out property are income. You need to pay tax on rental income in the year it's earned.

It's also important to understand your obligations for:

  • GST (if you're renting out short-term)
  • rental property excess deductions
  • keeping records

Who must pay tax on the rental income

Most people who earn rental income will pay income tax on it. This includes people who:

  • have overseas residential property
  • are joint owners of a rental property
  • who are not New Zealand residents but earn rental income from their New Zealand properties.

Who pays tax on rental income 

Rental income and expense deductions

Generally, you work out what tax there is to pay by deducting your allowable rental expenses from your gross rental income.

Your total allowable rental expenses and total rental income you earn go in the tax return you must fill in every year. 

The way you work out income and expenses is not the same for all residential property.

Check out tax by rental property type to see what to do for your property:

Tax by rental property type

GST and renting out residential property 

Residential rental income from renting out long-term is exempt from GST. You do not have to register, file or claim GST for your rental income or expenses.

Renting out short-term is a taxable activity for GST.

If you’re not already registered for GST, you need to:

  • add your short-term rental income to income from your other taxable activities
  • register for GST if your total turnover is over $60,000 in a 12 month period.

When you’re renting out short-term and you're registered for GST you:

  • pay GST on your short-term rental income
  • claim GST on your allowable rental expenses. 

When selling the property or changing its use to non-taxable (eg long-term renting) you'll also have to pay GST on the sale price or market value.

GST and renting out residential property

Rental property excess deductions

Sometimes your allowable rental expenses for your residential rental property are more than the rental income. When this happens you're left with excess deductions.

Generally, you cannot offset excess deductions against other income in your tax return. An example of other income is salary and wages.

You’ll need to carry excess deductions forward into the next tax year you earn residential rental income.

Residential rental property deductions

Keeping rental records

Remember to keep records of income and expenses for 7 years.

Rental income IR264 2023 (PDF 582KB) Download guide

Pages in this section
  • Pay tax on your rental income What you have to do to pay income tax on your rental income.
  • Rules for working out rental income and expenses Use these rules to work out what tax there is to pay on your income from renting out residential property.
  • Property interest limitation rules Since 1 October 2021, interest cannot be claimed for residential property acquired on or after 27 March 2021.
  • Who pays tax on rental income If you earn rental income you'll pay income tax on it. You'll need to do this for residential property here or overseas, or if you're the joint owner of a property.
  • Rental property expenses Rental expenses you can and cannot deduct from rental income.
  • Rental expense records Records you'll need to keep for 7 years if you rent out residential rental property.

Was this page helpful?

What did you like about this page?

Please tell us how we could improve this page?

Thanks for sharing your opinion! Your feedback has been received.

Sorry there was an issue submitting your feedback, please try again later.

Tasks

  • Register for GST
  • File your GST return
  • Complete my individual income tax return - IR3

Topics

  • Depreciation
  • Mixed-use assets

Other Sites

  • Registering GST and short-stay rental accommodation (PDF 280KB)
  • Work out if the mixed-use asset rules apply to your rental income (PDF 327KB)

Moving between Inland Revenue sites

picto--truck

Heads up. We're taking you to our old site, where the page you asked for still lives

Continue to old site
Last updated: 28 Apr 2021
Jump back to the top of the page top
Inland Revenue Inland Revenue

FOLLOW US

  • Facebook
  • Twitter
  • Youtube
  • LinkedIn
  • Subscribe

CONTACT US

  • Contact Information
    • Contact us
    • Media queries
    • Tax Policy enquiries
    • Tax Technical enquiries
  • About us
  • Careers
  • International

SHARE THIS PAGE

  • Email this page
  • Linkedin
  • Facebook
  • Twitter

SHARE THIS PAGE

  • About the site
  • Conditions of use
  • Privacy
  • Glossary
  • Accessibility
  • Copyright
  • MyIR Help
© Copyright 2023 Inland Revenue
New Zealand Government
Shielded website