New Zealand Tax Rates and Tips for US Expats
- New Zealand at a Glance
- What Is the Income Tax Rate in New Zealand?
- What Are Expat Taxes Like for Americans Living in New Zealand?
- Who Has to File Taxes in New Zealand?
- Who Qualifies as a Tax Resident in New Zealand?
- New Zealand Taxation on Foreign Income
- What Is the Deadline for Tax Returns in New Zealand?
- What Other Types of Taxation Does New Zealand Have?
- Essential Tax Forms for US Expats in New Zealand
- Credits and Deductions Available to Expats Living in New Zealand
- Does the US Have a Tax Treaty with New Zealand?
- Does the US Have a Totalization Agreement with New Zealand?
- Navigating Tax Compliance for US Expats in New Zealand
For many Americans living abroad, New Zealand is a dream home. With breathtaking landscapes and an English-speaking population, it’s no wonder thousands of expats have flocked to this island nation. But what are New Zealand’s tax policies like for US citizens?
Here’s what you need to know.
New Zealand at a Glance
- Primary Tax Form: IR3
- Tax Year: April 1–March 31
- Tax Filing Deadline: July 7
- Currency: New Zealand Dollar (NZD)
- Population: ~5.1 million
- Number of US Expats: Estimated 30,000
- Capital City: Wellington
- Primary Language: English
- Tax Treaty: Yes
- Totalization Agreement: No
What Is the Income Tax Rate in New Zealand?
The income tax rate for US citizens living in New Zealand will depend on your residency status. Residents are taxed at progressive rates, as shown below. (All amounts given in NZD.)
| Taxable Income from April 1, 2025 | Tax Rate |
| 0 – $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| 180,001 + | 39% |
Non-Resident Tax Rate in New Zealand
Non-residents are taxed at the same rate as residents (shown above), but only on their income sourced from New Zealand.
Learn where the best tax havens are, common traps, and ways to save money on your US expat taxes.
What Are Expat Taxes Like for Americans Living in New Zealand?
When discussing expat taxes, it’s always worth mentioning the continuing US tax obligations. Every US citizen is required to file an annual US tax return regardless of where they live in the world.
Beyond this, Americans living in New Zealand may also owe certain taxes to their new host country. Let’s examine the details of expat taxes in New Zealand.
Who Has to File Taxes in New Zealand?
New Zealand expat tax policies vary based on your residency status. Tax residents are taxed on their worldwide income, while non-residents are taxed only on income that comes from a New Zealand source.
New Zealand also has a third category: transitional residents. Transitional residents are exempt from taxation on most forms of non-New Zealand income. (More on this below.)
However, residents and non-residents who receive all their income from traditional employment are generally not required to file a tax return. This is because employment income is taxed at the source through employer withholdings.
Typically, you will only need to file a New Zealand tax return if you receive non-employment income, such as:
- Foreign income (as a resident of New Zealand)
- Self-employment or business income
- Rental income
- Royalties
- Estate, trust, or partnership income
Who Qualifies as a Tax Resident in New Zealand?
You will be considered a resident for tax purposes if you meet either of the following qualifications:
- You are present in New Zealand for more than 183 days in any 12-month period (these days do not have to be consecutive).
- You have a “permanent place of abode” in New Zealand.
If you do not meet these qualifications, you will be considered a non-resident. If you do meet the standards of residency, you will start out as a “transitional resident.” This exempts you from being taxed as a resident for the first 48 months (four years) of your residency. Until those four years pass, you will only be taxed on your New Zealand-source income.
New Zealand Taxation on Foreign Income
The New Zealand taxation of worldwide income is dependent on your residency status.
- Resident: taxed on worldwide income, minus foreign tax credits to protect residents from double taxation
- Non-resident: Only taxed on New Zealand-sourced income (foreign-sourced income is not taxable)
- Transitional resident: Taxed only on New Zealand-sourced income for the first 48 months of your residency, then on your worldwide income afterward.
What Is the Deadline for Tax Returns in New Zealand?
Unlike the US, the New Zealand tax year does not align with the calendar year. Instead, New Zealand’s tax year starts on April 1 and runs to March 31. For expats who are required to file an annual tax return, the due date is July 7.
you enroll with a tax agency, there is an automatic filing extension to March 31 of the following year.
If you owe a tax debt of more than 5,000 NZD, you must pay it in three installments over the course of the tax year. The due dates for these payments usually are:
- August 28
- January 15
- May 7
What Other Types of Taxation Does New Zealand Have?
In addition to the annual income tax, New Zealand also imposes several other forms of taxation. These include:
- Goods and services tax: 15% on all applicable goods and services
- Corporate tax: 28% of profits for qualifying businesses
- Fringe benefits tax: typically, 63.93% for shareholder-employees and 49.25% for all other employees
- Excise Duty: Levied on certain products, such as alcohol, tobacco, and some fuels (the rate varies depending on the product)
New Zealand has no official capital gains tax, though certain capital gains are taxed through separate tax regimes. If you are claiming gains, we recommend consulting a tax professional to determine your liability.
Essential Tax Forms for US Expats in New Zealand
As a US expat living in New Zealand, it is important to understand your tax obligations and ensure that you are complying with both US and New Zealand tax laws. The primary tax forms that US expats in New Zealand will need to complete are Form 1040 and Form 2555.
- Form 1040: This is the standard tax form for US citizens and residents, and it must be filed by US expats regardless of where they live.
- FinCEN Form 114: If you have foreign bank accounts with an aggregate value exceeding $10,000 at any time during the calendar year, you must report them by filing FinCEN Form 114. This is better known as the Foreign Bank Account Report (FBAR).
- Form 8938: This form is required if you have specified foreign financial assets exceeding certain thresholds. This is often known as a FATCA report.
Credits and Deductions Available to Expats Living in New Zealand
US expats living in New Zealand may be eligible for certain tax credits and deductions that can help reduce their overall tax liability, such as:
Using these benefits, you may be able to erase your US tax bill entirely.
When you live in the US, tax day is simple: April 15th! When you move abroad, it’s not so straightforward! Learn about all the expat deadlines and extensions you need to know to file.
Does the US Have a Tax Treaty with New Zealand?
Yes, the United States and New Zealand have a tax treaty in place designed to prevent double taxation and combat tax evasion. This treaty outlines which country has the primary right to tax various types of income earned by individuals who may be considered tax residents in both countries. While the treaty helps reduce the risk of double taxation by allowing for tax credits and exemptions, it does not exempt US citizens from their obligation to file US tax returns and pay taxes on their worldwide income.
Does the US Have a Totalization Agreement with New Zealand?
No, the US and New Zealand do not currently have a totalization agreement in place. This means that Americans who live and work in New Zealand may be required to contribute to both nations’ social security systems.
Navigating Tax Compliance for US Expats in New Zealand
Looking for a better understanding of taxes for US citizens living in New Zealand? Contact us today, and one of our customer champions will be happy to help. If you need very specific advice on your specific tax situation, you can also click below to get a consultation with one of our expat tax experts.
