Current Income Tax Rates

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Individuals

The basic rate of tax (before allowing for credits and excluding ACC earner premiums) that apply to individuals:

Taxable income $

Tax rate %

Cumulative tax $

0 - 14,000 10.5 1,470
14,001 - 48,000 17.5 7,420
48,001 - 70,000 30.0 14,020
over 70,000 33.0  

 

Companies

The rate of tax that will apply to companies (except LTC’s) for the income year is 28%. 

Income or losses earned in an LTC will be passed onto the shareholders based on their effective interest in the company.  Profits will be included in the shareholders tax return and taxed at their marginal tax rate, while losses can be offset against shareholders other income subject to a loss limitation rule.  

Trusts and Estates

A flat rate of tax applies to income earned in Trusts of 33%.

Independent earner tax credit (IETC)

A tax credit of up to $520 per annum is avliable for individuals who earn income between $24,000 and $48,000.  Tax payers who receive an income tested benefit, NZ supperannuation, veteran's pension or are entitled to Working for Families will not qualify.

 

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