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.
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
Split trust income
Trust_income = retained + adult_distributions + minor_distributions
Trustees decide each year before 31 March.
- 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
Adult beneficiary tax
Adult_tax = distribution × beneficiary_marginal_rate
Beneficiary files their own IR3.
- 4
Minor beneficiary tax
Minor_tax = distribution × 39% (anti-avoidance)
Trust pays this directly. Limited exceptions.
- 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 $7,200 (10k×33% + 10k×39%) + Adult $5,250 + Minor $3,900 = $16,350.
Frequently Asked Questions
Why was the NZ trustee tax rate raised to 39%?
Should I distribute trust income to lower-earning beneficiaries?
The NZ trust tax calculator applies the post-April-2024 trustee tax rules: 39% on retained trustee income with the first $10,000 at 33%, beneficiary distributions taxed at each recipient's marginal rate, and the 39% anti-avoidance rate on distributions to minors.
How this calculator works
Since 1 April 2024 the trustee tax rate has been 39%, aligned with the top personal rate to close the 33%-trust shelter. A de minimis rule keeps the first $10,000 of retained trustee income at 33%, protecting small family trusts. Income the trustees distribute as beneficiary income is instead taxed at each beneficiary's own marginal rate — which is where legitimate planning lives: distributions to an adult on 17.5% are taxed at 17.5%. The exception is minors: to stop income-splitting through children, distributions to beneficiaries under 16 are taxed at 39% under the minor beneficiary rule (small exceptions aside). Trustees must decide allocations by the relevant deadline, file an IR6 with full financial statements, and since 2022 disclose settlors, trustees, and beneficiaries annually. The calculator splits your trust income three ways and totals the tax under each treatment.
NZ trust tax rules (from 1 April 2024)
| Trustee (retained) income | 39% |
| De minimis — first $10,000 retained | 33% |
| Adult beneficiary distributions | Beneficiary's marginal rate (10.5 - 39%) |
| Minor beneficiary distributions (under 16) | 39% anti-avoidance rate |
| Required filing | IR6 return + financial statements |
| Disclosure (since 2022) | Settlors, trustees, beneficiaries annually |
Worked Examples
Trust income $60,000: $20,000 retained, $30,000 to an adult on 17.5%, $10,000 to a minor
Total tax ≈ $16,350.
- Trustee tax: $10,000 × 33% + $10,000 × 39% = $7,200
- Adult beneficiary: $30,000 × 17.5% = $5,250
- Minor beneficiary: $10,000 × 39% = $3,900
- Total: $16,350
Same trust, $45,000 income: retain everything vs distribute $30,000 to two adults on 30%
Retaining all: tax $16,950. Distributing: $14,250 — allocation strategy saves $2,700.
- Retain all: $10,000 × 33% + $35,000 × 39% = $16,950
- Distribute: trustee keeps $15,000 → $10,000 × 33% + $5,000 × 39% = $5,250
- Two adults: $30,000 × 30% = $9,000
- Total distributed scenario: $14,250 → saving $2,700
Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.
Last reviewed: