Taxes in New Zealand for new arrivals: what to know at the start
Before starting work, obtain an IRD number, give the employer the correct tax code and understand deductions. Tax residence is different from immigration status. Check IRD guidance and get specialist advice where overseas income or complex assets are involved.
Contents
Does the highest tax band apply to the whole salary?
No. Each rate applies only to the relevant slice. ACC, KiwiSaver and other applicable deductions are considered separately.
IRD number and myIR
Choose the official IRD-number application route for your status and prepare the required documents. The number is separate from a bank account and permission to work.
Set up myIR, check contact details and keep tax messages and payslips.
Tax code and deductions
Your employer uses the tax code for PAYE. It depends on income sources and personal circumstances including student loans. Use the official IRD tool.
ACC earners’ levy, KiwiSaver and other applicable deductions are separate. For 2026/27 ACC is 1.75% on earnings up to NZ$156,641; check other deductions for your circumstances.
Source: IRD: ACC earners’ levy rates for 2026/27 (checked 2026-10-15).
Progressive rates
From 1 April 2025, rates are 10.5% up to NZ$15,600; 17.5% on the slice to NZ$53,500; 30% on the slice to NZ$78,100; 33% on the slice to NZ$180,000; and 39% above that. Each rate applies only to its slice.
Entering a higher band does not apply that rate to all salary. Compare spending with income after all applicable deductions rather than the annual gross figure alone.
Source: Tax rates for individuals (checked 2026-10-15).
Tax residence and overseas income
IRD uses its own residence tests including presence and a permanent place of abode. A Resident Visa does not by itself answer the tax question.
Overseas income may matter even where the money stays overseas. Some new tax residents may have a temporary exemption for most foreign income; check its conditions and timing separately.
Source: IRD: tax residency status for individuals (checked 2026-10-15); IRD: temporary tax exemption (checked 2026-10-15).
End-of-year checks
Compare employer income with myIR and the final assessment. Additional, business or overseas income may require further action.
Use specialist advice for business, property, investments, foreign pensions or double taxation. Another person’s exemption may not apply to you.
Related reading
- Salaries in New Zealand by profession: evidence, experience and a budget example
- Cost of living in New Zealand: rent, groceries, transport and first-month budget
- Job offer in New Zealand: how to assess an offer before moving
FAQ
Does the highest tax band apply to the whole salary?
No. Each rate applies only to the relevant slice. ACC, KiwiSaver and other applicable deductions are considered separately.
Sources for independent verification
A check date is shown beside sources reviewed for this update.
- Tax rates for individuals. Checked:
- IRD: ACC earners’ levy rates for 2026/27. Checked:
- IRD: tax residency status for individuals. Checked:
- IRD: temporary tax exemption. Checked: