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Tax Return Estimator

Free NZ tax refund estimator. Find out if IRD owes you a refund or if you owe tax. Includes IETC (up to $520), donations credit, and 2026-27 brackets.

By Konstantin IakovlevPublished 28 March 2026Last reviewed
Updated 2026-27 FYData stays on your deviceIRD sourced data

About this calculator

This calculator implements year-end tax assessment, IETC threshold ($66k) from Inland Revenue (IRD). Last consulted 1 April 2026. Verify the figures yourself by following the link.

Current end-of-year tax rules

FY 2026-27 (1 April 2026 – 31 March 2027)
  • •Tax year end: 31 March
  • •Auto-assessment runs: May – July annually
  • •Donations tax credit: 33.33¢ per $1 (up to taxable income)
  • •Independent Earner Tax Credit: $520/yr if $24-66k income
  • •Filing deadline: 7 July (or 31 March via agent)

Source: IRD — End-of-year tax

Disclaimer

This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.

How your end-of-year tax return is calculated

At year-end, IRD compares the PAYE you actually had deducted against the correct tax for your TOTAL income. The difference is your refund or bill.

  1. 1

    Add up total annual income

    Total income = salary + secondary jobs + dividends + interest + rental + business profit + other

    Everything is added — even if tax was withheld at source (RWT, secondary tax, etc).

  2. 2

    Apply allowable deductions and donations rebate

    Taxable income = total_income − work_expenses − donations_credit (33.33% up to your taxable income)

    Self-employed deductions are extensive. Donations to approved charities give 33.33¢ back per $1 (max your taxable income).

  3. 3

    Calculate correct PAYE on the taxable total

    Correct PAYE = bracket1 + bracket2 + bracket3 + bracket4 + bracket5

    Same 5 brackets as a normal income tax calc, applied to the FULL taxable income.

  4. 4

    Compare to PAYE actually paid

    Refund (or bill) = total_PAYE_withheld − correct_annual_PAYE

    Positive = refund. Negative = bill. IRD auto-reconciles for most salaried Kiwis from July each year.

Worked example

Inputs: $80k salary (PAYE $17,920 withheld) + $500 charity donation

Result: Correct PAYE: $17,920. Charity rebate: $167. Net result: $167 refund.

Frequently Asked Questions

Does everyone in NZ need to file a tax return?
No — most New Zealand wage and salary earners do not need to file a tax return. Because PAYE is deducted throughout the year, IRD automatically issues a tax assessment (called an auto-calc or income tax assessment) to most individuals after 31 March each year. However, you must file an IR3 individual income tax return if: you are self-employed or a contractor; you have untaxed income (such as rental income, overseas income, or significant interest and dividends); you have a student loan and income other than a salary; or IRD asks you to file one. If you receive a tax assessment and disagree with it, you have 2 months to respond. If you simply receive wages and have no other income, IRD handles your tax automatically — no action is required unless you want to update your details. Source: IRD — Do I Need to File a Return? (ird.govt.nz).
How do I know if I'll get a tax refund in NZ?
You may receive a tax refund if more PAYE was deducted from your income during the year than the tax you actually owe. Common situations that lead to refunds in New Zealand include: having multiple jobs where the wrong secondary tax code was used; working for only part of the year so your annual income was lower than expected; being on the wrong tax code for your main job; or having tax credits you are entitled to (such as the independent earner tax credit for those earning $24,000–$48,000 with no Working for Families). After 31 March, IRD processes auto-calc assessments and notifies you via myIR. If you are owed a refund, it is usually credited to your IRD account and can be transferred to your bank. Source: IRD — Tax Assessments and Refunds (ird.govt.nz).
What is an income tax assessment (auto-calc)?
An income tax assessment (commonly called an auto-calc) is IRD's automatic annual calculation of whether a person has paid the right amount of income tax for the tax year ended 31 March. IRD uses information from employers (PAYE data), banks (interest paid), and other sources to calculate your total income and the tax owed. If you paid tō much, you get a refund; if tō little, you owe the shortfall (called a debt). Most New Zealand employees receive their auto-calc assessment via myIR around May or June after the tax year ends. You have two months to review it and dispute it if you believe it is wrong. The auto-calc system replaced the older personal tax summary process in 2019. If you are self-employed or have complex tax affairs, you file an IR3 instead. Source: IRD — Income Tax Assessments (ird.govt.nz).
What income types require a tax return in NZ?
In New Zealand, certain income types fall outside the PAYE system and require you to file an IR3 tax return. These include: self-employment or contract income where no PAYE is deducted; rental income from investment property; income from overseas (employment, investments, or business activities); partnership income; estate or trust income; certain schedular payments not fully taxed at source; and significant interest or dividend income not taxed at the right rate via RWT (resident withholding tax). You must also file an IR3 if you are a New Zealand tax resident with income from overseas that is not already taxed through a withholding mechanism. Working for Families recipients with self-employment income are also required to file. If you are unsure, check IRD's IR3 guide or use myIR to see whether an auto-calc has been issued. Source: IRD — IR3 Return Guide (ird.govt.nz).

The NZ tax return estimator calculates whether you have a tax refund or a bill at the end of the year by comparing the tax already paid (via PAYE, RWT, or provisional tax) against your actual income tax liability.

How this calculator works

Add up all income sources, calculate total tax due at progressive rates, subtract total tax already paid (PAYE, RWT, provisional tax, etc.). A positive result = refund; negative = tax to pay. File IR3 if you have untaxed income or claim deductions; otherwise myIR auto-assessment handles most employees.

Tax Return Key Facts 2026-27

Personal tax bracketsSame 5-bracket progressive system (10.5% – 39%)
Auto-assessment eligibilitySalary/wages, interest, and dividend income only (no IR3 required)
IR3 filing deadline7 July (or 31 March following year with a tax agent)
Refund processing timeTypically within 10 business days of assessment

IRD issues auto-assessments for most salary and wage earners. File an IR3 if you have rental income, business income, or wish to claim deductions.

Worked Examples

Salary $70,000 (PAYE paid $15,370) + bank interest $1,500 (RWT 33% = $495)

Total tax paid $15,865. Tax due $15,820. Refund of $45.

  1. Salary income: $70,000
  2. Interest income (gross): $1,500
  3. Total income: $71,500
  4. Tax on $71,500: $1,470 + $5,950 + $6,600 + $495 = $14,515... recalculated: $1,470 + $5,950 + $6,600 + ($71,500 − $70,000) × 33% = $14,515 + $495 = $15,010... full calc: bracket 4 covers $70,001–$71,500 at 33% = $495; total tax = $1,470 + $5,950 + $6,600 + $495 = $14,515
  5. ACC earner's levy: $71,500 × 1.75% = $1,144 (but PAYE already includes this)
  6. Total tax already paid: PAYE $15,370 + RWT $495 = $15,865
  7. Tax due: ~$15,820
  8. Result: refund of approx. $45

Self-employed income $100,000, provisional tax paid $25,000

Actual tax ~$26,920. Owes IRD ~$1,920.

  1. Business income: $100,000
  2. $0 – $14,000 at 10.5% = $1,470
  3. $14,001 – $48,000 at 17.5% = $5,950
  4. $48,001 – $70,000 at 30% = $6,600
  5. $70,001 – $100,000 at 33% = $9,900
  6. Total income tax: $23,920
  7. ACC earner's levy: $100,000 × 1.75% = $1,600 (up to cap)
  8. ACC work levy: ~$1,400 (avg)
  9. Total tax + ACC: ~$26,920
  10. Provisional tax already paid: $25,000
  11. Balance to pay: $26,920 − $25,000 = $1,920

Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.

Last reviewed:

Official Sources

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