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NZ Trust Income Tax Calculator

Calculate NZ trust tax under the 39% trustee rate (from 1 April 2024). Splits trustee-retained vs adult vs minor beneficiary distributions with $10k de minimis.

By Konstantin IakovlevPublished 28 March 2026Last reviewed
Data stays on your deviceIRD sourced data

About this calculator

This calculator implements trustee tax 39% rate + $10k de minimis (Taxation Act 2023) from Inland Revenue (IRD). Last consulted 18 May 2026. Verify the figures yourself by following the link.

NZ Trust tax rules (from 1 April 2024)

Taxation (Annual Rates) Act 2023
  • Trustee tax rate: 39%
  • De minimis (first $10k retained): 33%
  • Minor beneficiary (under 16): 39% (anti-avoidance)
  • Adult beneficiary distribution: Their marginal rate (10.5-39%)
  • Required filing: IR6 trust return + IR3B if active
  • Disclosure: Mandatory annual disclosure (settlor, trustees, beneficiaries)

Source: IRD — Trustee tax rates

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 NZ trust tax is calculated (post-2024 reform)

Trustee-retained income taxed at 39% (first $10k at 33%). Beneficiary distributions taxed at recipient's rate, except minors at 39%.

  1. 1

    Split trust income

    Trust_income = retained + adult_distributions + minor_distributions

    Trustees decide each year before 31 March.

  2. 2

    Trustee (retained) tax

    Trustee_tax = min(retained, $10,000) × 33% + max(0, retained − $10,000) × 39%

    De minimis $10k preserves the old 33% rate for small family trusts.

  3. 3

    Adult beneficiary tax

    Adult_tax = distribution × beneficiary_marginal_rate

    Beneficiary files their own IR3.

  4. 4

    Minor beneficiary tax

    Minor_tax = distribution × 39% (anti-avoidance)

    Trust pays this directly. Limited exceptions.

  5. 5

    Total trust tax

    Total = trustee_tax + adult_tax + minor_tax

    Plus annual disclosure filing (mandatory since 2022).

Worked example

Inputs: Trust income $60k: $20k retained, $30k to adult @ 17.5%, $10k to minor

Result: Trustee tax $3,300 (10k×33% + 10k×39%) + Adult $5,250 + Minor $3,900 = $12,450.

Frequently Asked Questions

Why was the NZ trustee tax rate raised to 39%?
From 1 April 2024 (Taxation (Annual Rates) Act 2023), trustee-retained income is taxed at 39% — matching the top personal rate. The change closes a loophole where high earners diverted income through trusts taxed at the previous 33% rate. The first $10,000 of trustee income remains at 33% as a "de minimis" concession for small family trusts. Source: IRD.
Should I distribute trust income to lower-earning beneficiaries?
Often yes — distributing to an adult beneficiary on a lower marginal rate (10.5% or 17.5%) saves up to 28.5% vs the 39% trustee rate. BUT minor beneficiaries (under 16) are taxed at 39% as an anti-avoidance rule, with limited exceptions. Always get accountant advice — trust rules are complex and the 39% rate now creates many planning decisions. Source: Simpson Grierson.

How this calculator works

This nz trust income tax calculator uses the latest data from official New Zealand government sources to provide accurate results. All calculations are performed in your browser — your data never leaves your device.

All calculations are performed in your browser — your data never leaves your device. Results are for general guidance only and should not be considered professional financial advice.

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

Last reviewed: