Tax guide for Americans in New Zealand
For American expats looking ahead to the 2026 filing season, New Zealand’s 1 April 2025–31 March 2026 income year finishes with an IR3 due on 7 July 2026, while the standard US deadline of 15 April 2026 automatically shifts to 15 June 2026 when you live abroad.
Coordinating these parallel calendars ensures that taxes in New Zealand are fully credited or excluded before they are reflected on your US return, safeguarding cash flow and minimizing double taxation.
This guide distils every key date, threshold, and treaty interaction into practical steps so US expats can file on time, claim every benefit, and keep more of what they earn.
Overview of New Zealand – 2026 deadlines on 2025 income
Category | Details |
---|---|
Primary tax form for residents | New Zealand individual tax return (IR3) |
Tax year | 1 Apr 2025 – 31 Mar 2026 |
Tax due date (IR3) | 7 Jul 2026 (automatic extensions available when you file through a registered tax agent) |
Criteria for NZ tax residency | Presence in NZ for > 183 days in any rolling 12-month period or establishment of a permanent place of abode |
Double-tax relief tools | Foreign tax credit on Form 1116 plus the US–NZ income-tax treaty |
Tax residency for dual citizens | Both countries may tax you; the treaty generally assigns primary taxing rights and credits the other side to avoid double taxation |
Estate & inheritance tax | NZ has no estate or inheritance tax; the US estate-tax regime can still apply to the worldwide assets of Americans |
Local income tax rate brackets | 10.5% on NZ$0–15,600 17.5% on NZ$15,601–53,500 30% on NZ$53,501–78,100 33% on NZ$78,101–180,000 39% on NZ$180,001 + |
Navigating New Zealand tax basics as a US expat
For US expats living in New Zealand, understanding how the tax system works is key to avoiding surprises and maximizing your eligible benefits.
- New Zealand’s progressive tax system – New Zealand applies a progressive tax rate structure: 10.5% on the first NZD 15,600 up to 39% on income above NZD 180,000, with the fiscal year running 1 April – 31 March. This schedule means the actual percentage of tax you pay rises only on the slice of wage income that spills into each bracket, keeping effective rates lower than the top marginal figure.
- What expats need to know about IRD, PAYE, and GST – Inland Revenue (IRD) administers the system, collecting Pay-As-You-Earn (PAYE) withholding straight from an employee’s wage, so most residents never file an annual return unless they have untaxed income. Goods and Services Tax (GST) – a broad 15% consumption levy – is wrapped into most prices, while the ACC earners’ levy sits at 1.67% of liable earnings for 2025-26.
- Are the US and NZ taxes more alike than you thought? – New Zealand taxes residents on worldwide income during its April–March fiscal year and has no separate state taxes, whereas the US uses a calendar year and assesses federal liability even for citizens abroad, offset by tools like the Foreign Earned Income Exclusion (up to USD 130,000 for 2025).
NZ generally lacks a broad capital-gains regime and Social Security tax; instead, IRD relies on PAYE and the bright-line property rule, so United States expats often juggle two calendars and deduction systems to avoid double taxation.
What tax residency means for your NZ obligations
Who is considered a tax resident? In the 2026 filing season — covering income earned — your residency status dictates both where your income is taxed and when your return is due for most individuals.
The stakes are high: residents pay taxes in New Zealand on their worldwide income, while non-residents are liable only on income sourced inside the country.
Are you a tax resident or not?
- Residents: Your salary or wage is pulled into New Zealand’s progressive bands, topping out at 39 percent for income above NZ$180,000. The same percentages apply to dividends, interest, and other categories, and Inland Revenue also levies the 1.67 percent ACC earners’ levy on employment income.
- Non-residents: You face New Zealand income tax only on New Zealand-sourced receipts (for example, rental profits or contract work performed locally). Withholding rules often apply at source, but final liability is squared up in the IR3NR.
These differences shape how United States expats decide whether to claim the foreign tax credit or the foreign earned income exclusion on their US return, because New Zealand tax paid on wages can offset US liability only if you are treated as a resident in New Zealand.
How the Inland Revenue determines your status
Even if you become a New Zealand resident, remember that United States expats must still file a Form 1040 and related international schedules; the automatic 2-month extension moves the US deadline to 15 June 2026, with an optional extension to 15 October 2026 if Form 4868 is filed or you use our free extension service.
Test | What triggers residency | When it starts | Practical tip |
---|---|---|---|
183-day rule | Present in New Zealand > 183 days in any 12-month window | Backdated to day 1 of that period | Keep a dated travel log; even part-days count. |
Permanent place of abode | You keep or establish a dwelling with enduring ties (family, economic, social) | From the moment such ties exist | Selling or leasing out a home may not be enough – evidence of severed ties is critical. |
NOTE! New migrants and returning Kiwis often qualify as transitional residents, enjoying a 48-month exemption on most foreign-sourced income (but not employment wage income). This can dramatically lower the percentage of global income exposed to taxes in New Zealand during the first four years.
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Personal Income Tax
As an American working in New Zealand, you’ll pay the local income tax rate on your wage before squaring things with the US return. The brackets below apply to income earned during the 1 April 2025 – 31 March 2026 tax year.
Taxable income (NZD) | Rate |
---|---|
0 – 15,600 | 10.5% |
15,601 – 53,500 | 17.5% |
53,501 – 78,100 | 30% |
78,101 – 180,000 | 33% |
180,001 + | 39% |
PAYE withholding deducts tax (and the ACC earners’ levy) from every dollar you earn, so there is no tax-free threshold.
Secondary tax rates
When you draw a second wage, New Zealand applies a separate income tax rate to that extra income – ensuring Americans who moonlight or hold multiple jobs have the right amount withheld throughout the year.
Estimated annual total income (NZD) | Secondary tax code | Tax rate (before ACC) |
---|---|---|
0 – 15,600 | SB | 10.5% |
15,601 – 53,500 | S | 17.5% |
53,501 – 78,100 | SH | 30% |
78,101 – 180,000 | ST | 33% |
180,001 + | SA | 39% |
Other taxes in New Zealand
Goods and Services Tax (GST)
GST is a 15% consumption tax that pervades almost every purchase in New Zealand; the marked price you see already includes it. Businesses must register once their taxable turnover exceeds NZD 60,000 in any 12-month period; Americans running a side gig or remote consultancy should watch this threshold closely.
Registered taxpayers add GST to sales, claim input credits on costs, and file periodic returns (monthly, two-monthly, or six-monthly). For most 2025–26 filers, the final GST return covering March 2026 transactions falls due in April or May 2026, depending on their chosen frequency.
Fringe Benefits Tax (FBT)
FBT captures the true value of non-cash perks – think company cars, subsidised housing, or personal-use flights – that can pad an expatriate’s remuneration package outside the usual New Zealand’s tax rate on wages. Key points:
- Rates: Under the full alternate method for 2025–26, the marginal FBT rate escalates from 11.73% to 63.93% as remuneration rises.
- Return timing: Employers using the annual option must lodge the IR422 by 31 May 2026; quarterly filers pay 20 July, 20 October, 20 January, and 31 May.
- Cost planning: Because FBT is deductible to the business, structuring benefits efficiently can reduce the overall tax system drag on total remuneration.
Employer Superannuation Contribution Tax (ESCT)
When an employer tops up your KiwiSaver or another pension plan, that contribution is itself taxed through ESCT. The current bands, in force from 1 Apr 2025, are:
Annual wage + employer contribution (NZD) | ESCT rate |
---|---|
0 – 18,720 | 10.5% |
18,721 – 64,200 | 17.5% |
64,201 – 93,720 | 30% |
93,721 – 216,000 | 33% |
216,001 + | 39% |
Property-related taxes (including RLWT and capital-gains implications)
Unlike many OECD peers, New Zealand has no broad capital-gains tax, yet several rules still bite:
- Bright-line test: Residential property sold on or after 1 July 2024 is taxable if disposed of within two years of acquisition; Americans rotating assignments should plan holding periods carefully.
- Residential Land Withholding Tax (RLWT): When an offshore seller (including many short-term expatriates) settles a sale inside the bright-line window, the conveyancer must withhold the lesser of 10% of the sale price or 33% of the gain (39% for trusts/companies) and pay it to Inland Revenue.
- Council rates: Annual local-authority charges fund core services; they vary by district and are not creditable against US tax, though they may reduce any New Zealand capital-gain calculation.
- Record-keeping: Include any bright-line income in the 2026 IR3 by 7 July 2026, even if the gain is ultimately offset by US foreign-tax credits.
Excise and luxury taxes
New Zealand levies specific excise on alcohol, tobacco, and fuel but imposes no separate luxury charge on pricey discretionary items. Alcohol duty was CPI-indexed on 1 July 2025 – mid-strength beer, for instance, now attracts NZD 37.836 per litre of alcohol – while tobacco and heated-tobacco duties rose 2.23% on 1 January 2025, pushing the standard heated-tobacco rate to NZD 906.30 per kilogram.
Motor-fuel pump prices also embed a per-litre excise set out in the Customs’ Working Tariff Document, and GST is calculated on top of that duty, creating a noticeable tax-on-tax effect. Because yachts, jewellery, luxury cars, and other high-value goods face only the 15% goods and services tax, the effective New Zealand tax rate Americans pay on big-ticket purchases remains transparent and predictable.
Accident Compensation Corporation (ACC) levy
New Zealand’s no-fault ACC scheme shifts medical and wage-replacement costs from litigation to a universal levy:
- Earners’ levy: 1.67% of liable earnings for 1 Apr 2025 – 31 Mar 2026, capped at NZD$152,790 in wages.
- Collection: Employers deduct the levy alongside PAYE; self-employed Americans pay it with their provisional tax instalments.
- Filing: Final adjustments arrive on the 2026 employer or individual tax statement – no separate form needed.
Together, these ancillary levies round out the New Zealand tax system and influence the effective tax rate Americans face on wages, perks, spending, and property holdings.
Filing income taxes – 2026 deadlines for your 2025 income
Step 1: Create your myIR profile – Visit Inland Revenue’s site and open a secure myIR account so you can link your IRD number, pre-populate PAYE data, and track any refund.
Step 2: Gather your records – Collect New Zealand income information (wage/PAYE summaries, interest and dividend statements, KiwiSaver or ESCT details, rental or self-employment figures) plus any US-source income needed for your American return. Having both sets of data now helps you decide whether to use the foreign tax credit or the foreign earned income exclusion later.
Step 3: Complete the IR3 online – Log in to myIR, work through each income box, and claim allowable deductions such as charitable gifts or bright-line property costs. The system calculates ACC earners’ levy and shows any provisional tax already paid. File no later than 7 July 2026 for the 1 April 2025 – 31 March 2026 tax year (or use an agent’s extension if you have one).
Step 4: Double-check foreign details – If you are a US citizen or green-card holder, note the exchange rate you will use on your 2025 Form 1040. Flag any items that will also appear on your US Schedule B, Form 1116, Form 8938, or FBAR. Remember: your automatic expat filing window with the IRS runs to 15 June 2026, with interest accruing from 15 April unless paid earlier.
Step 5: Submit or mail a paper IR3 if needed – If broadband access is limited, download the current-year IR3, sign it, and send it to the address shown on the form. Keep a dated copy and proof of postage in case IRD processing is delayed.
Step 6: Understand the cost of missing the deadline – Late-filing penalties are NZD 50 when your net income is below 100,000 NZD, NZD 250 between 100,000 NZD and 1 million NZD, and NZD 500 above 1 million NZD.
Step 7: Factor in Use-of-Money Interest – From 8 May 2025, the underpayment UOMI rate is 9.89% and the over-payment rate is 3.27%; interest starts the day after 7 July 2026 on any balance still owing. Rates change periodically, so re-check the IRD’s notice as the due date approaches.
Step 8: Fix errors proactively – If you discover an omission, file a voluntary disclosure through myIR before IRD contacts you. Doing so can reduce or cancel shortfall penalties and, for many expats, avoid double interest – one bill from New Zealand and another from the US.

Income streams taxable in New Zealand
Employment and self-employment income
Salary, wage, and contractor earnings are taxed through the PAYE or provisional-tax systems, and an IR3 must reach Inland Revenue by 7 July 2026 if any untaxed income remains. Americans still report the same earnings to the US and can usually neutralise double tax via the $130,000 foreign-earned income exclusion or the foreign-tax credit.
Rental income from property
All rent and tenant reimbursements are taxable, but from 1 April 2025, landlords may again deduct 100% of interest on residential-property loans; excess deductions are still ring-fenced and carried forward. US filers can offset New Zealand property tax against US rental profits, yet those profits remain in scope for the 3.8% net-investment-income tax once above the US thresholds.
Investment income (including FIFs and CFCs)
Holdings in overseas shares, funds, or policies costing over NZ$50,000 trigger the FIF regime, while stakes in foreign companies with more than 5% passive income fall under the CFC rules and may be attributed annually. Any attributed income is also reportable on your US return, but foreign-tax credits usually prevent double taxation.
Foreign superannuation (how it’s taxed and transferred)
Lump-sum withdrawals or KiwiSaver transfers are taxed under the schedule method, which deems a sliding-scale portion of the payout as income based on years of residence. New arrivals enjoy a four-year transitional-resident exemption, after which both New Zealand and the US will expect disclosure and, where relevant, tax on the same distribution.
Tax deductions for expats in New Zealand
- Employment expenses: For 2025 income to be reported on the 2026 IR3, ordinary employee costs such as commuting, everyday clothing, and most home-office set-ups remain non-deductible. An exception applies to commission-based earners whose unreimbursed costs are directly tied to generating that income, while self-employed US expats may access the broader business expense rules.
- Business deductions: Self-employed individuals and small-business owners can offset income with genuinely incurred costs, including workspace rent, utilities, equipment, travel, and professional services. Where an asset (for example, a vehicle) is used both privately and for work, only the income-earning portion is deductible.
- Personal deductions: New Zealand offers few personal write-offs: premiums for income-protection insurance and interest on borrowing used to earn non-rental investment income are generally the main ones. Standard personal outlays such as medical bills, life insurance, or childcare are not deductible.
- Credit for donations: Gifts of NZ$5 or more to an approved donee organisation qualify for a refundable credit equal to 33.33% of the donation, up to your taxable income for the year. Claim the credit by filing IR526 (or via payroll giving for an immediate benefit) no later than four years after 31 March 2026.

Tax credits for expats in New Zealand
- PAYE & RWT: Taxes withheld from wages and NZ investment income are pre-credited in your IRD assessment, typically finalized by 7 July 2026, or later if using a tax agent.
- Foreign Tax Credit (FTC): Available to NZ tax residents for foreign-sourced income also taxed abroad (e.g., in the US); only applies if the foreign tax is similar to NZ income tax and not refunded elsewhere.
- Independent Earner Tax Credit (IETC): Up to NZ $520 for income between NZ $24,000 – $70,000. Automatically included via the ME tax code or filed through your IR3.
- Child Tax Credit: Protects up to NZ $2,340 of income earned by minors from being taxed, provided it’s not already taxed at source.
- Working for Families: Ongoing credits for families with dependent children; includes Family, In-Work, Best Start (NZ $55/week for babies), and Minimum Family credits, with a year-end reconciliation after 31 March 2026.
- Imputation Credits: NZ companies can attach tax credits (up to 28%) to dividends; these reduce your personal tax liability on investment income if you're a NZ resident.
Most credits are reconciled through the IR3 return due 7 July 2026. These same credits can factor into your US tax filings via the Foreign Tax Credit mechanism, reducing double taxation.
Social security and retirement planning
From 1 April 2026, KiwiSaver default contribution rates rise to 3.5%, affecting all employees earning a salary in the 2025–2026 income year. Employer contributions remain taxed under ESCT bands ranging from 10.5% (under NZD 18,720) to 39% (above NZD 216,000). Contributions now extend to 16- and 17-year-olds, while the annual government match is halved to NZD 0.25 per dollar, capped at NZD 260.72. These updates impact both net pay and long-term savings for Americans working in New Zealand.
NZ Superannuation pays NZD 1,076.84 every two weeks (M tax code) for single residents over 65 living alone, and NZD 1,656.68 total for eligible couples. Payments are wage-indexed each 1 April, with new rates in effect for the 2025–2026 tax year. To qualify, you must meet a 10-year residency test after age 20, including 5 years since turning 50. US citizens must report NZ Super as foreign income on Form 1040 or 1040-SR by 15 June 2026 if using the expat extension.
US self-employed citizens in New Zealand must pay 15.3% self-employment tax if earnings exceed USD 400. Wages from NZ employers are exempt from US FICA but may trigger reporting of KiwiSaver accounts on FBAR and Form 8938. Contributions should be coordinated with the FEIE.
There is no US–NZ totalization agreement, unlike with many other countries. This means no automatic relief from double Social Security tax for self-employed Americans. Payroll employees may also face mismatched benefit coverage periods when claiming US or NZ retirement. Advance planning, like using a US employer or managing NZ tax residency, is key to optimizing long-term benefits.
Avoiding double taxation – file smart
The US–New Zealand income tax treaty provides three core mechanisms that keep the same 2025 income from being taxed twice when you file in 2026:
- Foreign Tax Credit relief: Article 23 lets you credit New Zealand income tax (including PAYE and RWT) against the US liability reported on your 2025 Form 1040, subject to the usual foreign tax credit limits and carry-overs.
- Residency tie-breaker rules: If both countries treat you as a resident, the treaty applies a sequential "permanent home → centre of vital interests → habitual abode → nationality" test to allocate residency to one jurisdiction and eliminate double residency.
- Reduced withholding rates: Dividends can be withheld at 5% (or 0% for qualifying 80% parent-subsidiaries), while interest and royalties generally drop to 10% or less, reducing upfront tax and simplifying your US credit calculation.
Common tax forms for US expats in New Zealand
US forms you may need
Form 2555 lets you exclude up to $130,000 of your 2025 foreign salary under the foreign earned income exclusion.
Form 1116 converts the New Zealand tax you paid into a foreign tax credit that offsets your 2025 US liability.
FinCEN 114 (FBAR) reports NZ accounts if their combined balance ever tops $10,000; it is due 15 Apr 2026 with an automatic extension to 15 Oct 2026.
Form 8938 comes into play once your foreign financial assets exceed $200,000 single / $400,000 married-joint on 31 Dec 2025 (or $300,000 / $600,000 at any time).
New Zealand tax forms you should know
- IR330 – Tax code declaration – hand this to your employer so PAYE is withheld at the right rate.
- IR3 – Individual tax return – file by 7 July 2026 if you had untaxed or overseas income during the 2025-26 NZ year.
- IR3NR – Non-resident return – required when you are a non-resident yet earn New Zealand-source income.
- IR4 – Company return – annual income-tax return for any NZ company you control.
- IR215 – Working for Families adjustment – updates family-income details so tax-credit payments stay accurate.
- IR360 – GST registration – complete once your business turnover reaches NZ$60,000 in any 12-month window.
Need help? Talk to an expat tax professional
Taxes for Expats helps Americans in New Zealand stay fully compliant with US tax laws without the stress. Whether you're navigating foreign tax credits, filing FBARs, or claiming exclusions, our experts make it seamless, accurate, and hassle-free.
