Rules for working out rental income and expenses

You must pay tax on your rental income. To work out your taxable rental income, you deduct your allowable rental expenses from your gross rental income.

These are the different rules that help you work your taxable rental income. They're not the same for all types of rental property.

Make sure you're using right one for your property.

Tax by rental property type

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Actual cost method for working out rental income and expenses The actual cost method means you work out your net rental income by deducting your allowable rental expenses from your gross rental income.
Short stay standard costs for renting out your home or its rooms The short-stay standard cost-method is a fixed nightly rate. There's no income tax to pay or tax return to file if you charge guests up to the fixed nightly charge per night. Check if you can use the method.
Standard cost method for boarders and home-stay students Use the standard cost method for boarders and home-stay students to see if you pay tax on rental income from them.
Work out if boarder income is taxable - standard costs calculator Individuals can use our calculator to work out if they need to pay tax on income from boarders or home-stay students. This calculator uses the standard costs method and is for the 2022 tax year onwards.

Ngā ture mō te tātai moni whiwhi me ngā utunga rēti Rules for working out rental income and expenses

Rules for working out rental income and expenses