New Zealand Income Tax Rates 2026: Personal Tax, Capital Gains and Company Tax

A practical guide to New Zealand individual income tax brackets, PAYE and secondary income, taxation of non-residents, residential property gains and corporate income tax. Historical 2018-19 rates are preserved below for reference.

1. Individual income tax rates for 2026-27

Under the Income Tax Act 2007, taxable income is assessed by income category and subject to the annual rates in Schedule 1. For individual taxpayers, the following bands apply from 1 April 2025 and continue in the 2026-27 tax year, as published by Inland Revenue.

For example, an individual earning NZD 60,000 pays 10.5% on the first NZD 15,600, 17.5% on the next NZD 37,900 and 30% only on the remaining NZD 6,500. The figures exclude any applicable ACC earners' levy and tax credits.

2. Secondary tax and PAYE withholding

PAYE (Pay As You Earn) is tax withheld from salary and wages by employers. A person with a second job generally supplies an appropriate secondary tax code; secondary rates are withholding rates and the final annual liability depends on total taxable income. The current standard secondary codes (before ACC levies) are:

Tax codes, special rates and the treatment of schedular payments are governed by the PAYE provisions and related rules. Consult the official tax-code guidance before selecting a code.

3. Resident and non-resident income tax

Tax residence determines whether New Zealand generally taxes a person on worldwide income or only relevant New Zealand-source income. Residence tests include the permanent place of abode and presence tests under section YD 1 of the Income Tax Act 2007. A double tax agreement may alter the outcome.

Non-residents are not subject to a universal 20% income tax rate. New Zealand employment income can be taxed at progressive rates, while certain interest, dividends and royalties may be subject to non-resident withholding tax (NRWT), depending on the payment, exemptions and treaty provisions. Refer to Inland Revenue's international individual guidance and the relevant double taxation agreement.

4. Capital gains and property sales in New Zealand

New Zealand does not impose a general standalone capital gains tax on every investment disposal. However, a gain can be taxable as income where the relevant statutory rules apply. The Income Tax Act 2007, sections CB 3 to CB 6A, addresses various business and land transactions, including land acquired for disposal and the residential land bright-line test.

For residential property sold on or after 1 July 2024, the bright-line period is generally two years, subject to the statutory start and end dates, exclusions and rollover relief. A qualifying main home may be excluded. Property can still be taxable under other land-sale rules even outside the bright-line period. See Inland Revenue's property rules and QB 25/11 on the bright-line start date.

Foreign shares and overseas investments may also fall within the foreign investment fund (FIF) and financial arrangements rules, depending on the investor and investment. The tax treatment cannot be reduced to a general statement that all capital gains are exempt.

5. Corporate and company income tax

The standard New Zealand income tax rate for most companies remains 28% of taxable income. Company taxation is governed by the Income Tax Act 2007, including the company and imputation provisions. Different rules may apply to certain entities, such as qualifying portfolio investment entities or look-through companies.

Insurance premiums paid to non-resident insurers can be subject to specific deemed-source rules and should not be described as a blanket tax of 28% on all premiums. Refer to the official business income tax guidance.

6. Historical New Zealand income tax rates for 2018-19

The original article concerned the tax year ending 31 March 2019. The 2018-19 personal income tax brackets were as follows. These are historical rates, not current 2026 rates. The source page's NZD 22,000 and NZD 52,000 thresholds were not the enacted 2018-19 thresholds; the correct thresholds were NZD 14,000 and NZD 48,000.

Historical secondary tax codes (2018-19)

The original page also recorded a 28% standard company tax rate, which remains the general company rate. Its blanket statement of a 20% tax rate for all non-residents was inaccurate and has been replaced with the source- and treaty-specific explanation above.

7. Key legal definitions and official sources

• Taxable income: the income amount on which income tax is calculated after relevant deductions and adjustments under the Income Tax Act 2007.
• PAYE: withholding of income tax from employment income under the payroll tax rules.
• Tax resident: an individual satisfying the domestic residence criteria, including the rules in section YD 1.
• Bright-line test: a statutory rule that can tax certain residential land disposal gains within a specified holding period, subject to exclusions.
• NRWT: non-resident withholding tax on specified passive income payments to non-residents.

Official references: New Zealand Inland Revenue; Income Tax Act 2007; individual tax brackets and secondary rates; residential property rules; Tax Policy, Inland Revenue.

Information note: This is general tax information. Tax credits, levies, residence status, tax treaties and special rules may change the final liability. Confirm the tax year and facts against Inland Revenue guidance before filing.