NZ Tax Credits
Updated for 2026 IRD rates
What are Tax Credits?
Tax credits reduce the amount of tax you need to pay, dollar for dollar. New Zealand offers several tax credits that can lower your tax bill or result in a refund. Unlike deductions (which reduce your taxable income), credits directly reduce the tax you owe.
Donations Tax Credit
If you make donations to approved charities or organisations in New Zealand, you can claim a tax credit of 33.33% of the total amount donated. This means for every $100 you donate, you can claim back $33.33.
- Minimum donation: $5 per donation
- No maximum limit — you can claim for all donations in a tax year
- How to claim: Keep your receipts from the charity and claim through myIR or include in your annual tax return
- Time limit: You must claim within 4 years of the end of the tax year in which you made the donation
Approved charities include most registered charitable organisations in New Zealand. School donations, church offerings, and donations to overseas charities may not qualify — check with IRD.
Independent Earner Tax Credit (IETC)
The Independent Earner Tax Credit provides up to $520 per year ($10 per week) for taxpayers who:
- Earn between $24,000 and $48,000 per year
- Do not receive a main benefit, NZ Superannuation, or a student allowance
- Do not receive Working for Families tax credits
The credit phases out at a rate of 13¢ per dollar for income over $44,000, meaning it fully phases out at $48,000. You don't need to apply — IRD automatically calculates the IETC when you file your tax return or through your employer's PAYE deductions.
Child Support
Child support payments in New Zealand are managed by IRD. While child support is not a tax credit you claim, payments you receive as a custodial parent are generally non-taxable, and payments you make as a liable parent may be deductible in certain circumstances.
For formula-assessed child support, the assessment considers both parents' incomes, the number of nights the child spends with each parent, and the costs of raising children. The child support formula uses a standard cost table updated annually by IRD.
Other Tax Credits and Rebates
Housekeeper Tax Credit
The housekeeper tax credit has been discontinued for most taxpayers. It is now only available to taxpayers who were already receiving it before the scheme was closed to new applicants.
Transitional Tax Credit (Transitional Assistance)
If you've recently moved from a benefit into paid work, you may be eligible for a transitional tax credit. This provides up to $60 per week (after tax) for the first year of employment, and $40 per week for the second year. Check with Work and Income or IRD for eligibility.
Tax Credits for Companies
Companies may be eligible for research and development (R&D) tax credits, which provide 15% of eligible R&D expenditure as a tax credit. The credit is available for eligible R&D activities carried out in New Zealand.
How to Claim Tax Credits
Most tax credits can be claimed through your annual tax return in myIR. For some credits like the donations tax credit, you can also claim them at any time during the year by lodging a separate claim. Keep all receipts and documentation supporting your claim — IRD may request evidence.