Tax in New Zealand: What Brits Need to Know in Their First Year

26 August 2026

New Zealand's tax system runs on a different calendar to the UK's and has no tax-free threshold, both genuine adjustments. Here's the practical version of what changes in your first year.

The tax year runs April to March

New Zealand's tax year runs 1 April to 31 March, different from both the UK's 6 April to 5 April year and the calendar year. IRD (Inland Revenue) is the equivalent of HMRC.

Income tax brackets

Income above $180,000 is taxed at 39%. These brackets have been unchanged since 31 July 2024, per IRD, as at 26 Aug 2026.

How NZ tax residency gets decided

Either of two tests makes you NZ tax resident. The 183-day test: present in New Zealand for more than 183 days in any rolling 12-month period (part-days on arrival and departure both count as full days, and residency backdates to the first of those 183 days). The permanent place of abode test: having a place you usually live in New Zealand, which doesn't require ownership and is assessed on the overall strength of your ties. Most people arriving to settle permanently will meet one or both of these quickly.

If you're unsure of your status, IRD's tax residence questionnaire (IR886) can be completed via myIR, or you can request a certificate of NZ tax residency.

Key Takeaways

The NZ tax year runs 1 April to 31 March, different from the UK's tax year and the calendar year.
There's no tax-free threshold. Tax applies from the first dollar earned.
Brackets run from 10.5% to 39%, with the top rate applying above $180,000.
Residency is decided by a 183-day rolling test or a permanent-place-of-abode test, either can apply.

Frequently Asked Questions

Do I need to file a tax return in New Zealand?

Many employees on a standard salary have their tax automatically deducted and don't need to file anything further, though it's worth checking your specific situation via myIR, particularly if you have other income sources.

Do I need to tell HMRC I've left the UK?

Generally yes, if you're leaving the UK to live abroad. HMRC has its own process for this (form P85 for most PAYE employees), which can also affect any UK tax refund you might be owed for a partial year. Check gov.uk directly for your specific situation.

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