New Zealand taxes working holidaymakers from the first dollar — there's no tax-free threshold like Australia's. But there's also a credit that can put money back in your pocket, and many backpackers are owed a refund they never claim.
NZ income tax brackets
| Income | Rate |
|---|---|
| $0 – $14,000 | 10.5% |
| $14,001 – $48,000 | 17.5% |
| $48,001 – $70,000 | 30% |
| $70,001 – $180,000 | 33% |
| Over $180,000 | 39% |
Example: earn $30,000 → 10.5% on the first $14,000 ($1,470) + 17.5% on the next $16,000 ($2,800) = $4,270 income tax.
The Independent Earner Tax Credit (IETC)
If you earn between roughly $24,000 and $48,000 and aren’t getting certain benefits, you may qualify for the IETC — a small annual credit that reduces your tax. It’s easy to miss, so check whether you’re eligible when you file.
Don’t forget the ACC levy
Separate from income tax, an ACC earners’ levy is deducted to fund accident cover. It’s small but it’s why your take-home is a little lower than the tax brackets alone suggest.
Claiming a refund
If too much was deducted (wrong tax code, mid-year start, multiple jobs), you can get it back. Check your income tax assessment in myIR at the end of the tax year (31 March).
Track your NZ earnings and tax through the year in one place.
Start tracking free