From 1 April 2021 a new top tax rate of 39% was introduced for individuals who earn over $180,000 a year.
If you earn over $180,000 a year, the 39% deduction rate also needs to be applied to any interest you earn from New Zealand bank accounts and investments. This is called resident withholding tax (RWT). Payers of interest, such as banks and financial institutions, deduct the tax before they pay you.
The 39% RWT rate is available for you to choose through your interest payer. You should be able to select this rate in your online banking. If not, you'll need to contact your bank or other interest payer directly. Unfortunately, we cannot update the RWT rate for you.
We’re sending emails and letters to customers, or their elected tax agents, from 24 November.