New Zealand
Top Income Tax
39%
Marginal rate
Corporate Tax
28%
Standard rate
VAT / Sales Tax
15%
Standard rate
Capital Gains
0%
Standard rate
Overview
New Zealand has no capital gains tax (with limited exceptions), making it attractive for investors. The 4-year transitional resident exemption shelters foreign income for new arrivals. Auckland and Wellington offer high quality of life in a stable, English-speaking environment.
Income Tax Brackets
| Income Range (NZD) | Tax Rate |
|---|---|
| 0 - 14,000 | 10.5% |
| 14,000 - 48,000 | 17.5% |
| 48,000 - 70,000 | 30% |
| 70,000 - 180,000 | 33% |
| 180,000+ | 39% |
NZD amounts. ACC levy (~1.6%) also applies.
Corporate Tax
Standard Rate
28%
28% flat rate for all companies.
VAT / Sales Tax
Standard Rate
15%
GST at 15% on most goods and services. No reduced rates.
Capital Gains Tax
Standard Rate
0%
No general capital gains tax. Bright-line test applies to residential property (2 years).
Social Security Contributions
Employee
0%
Employer
4%
Self-Employed
0%
KiwiSaver: optional employee contributions (3-10%). Employer minimum 3%. ACC levy ~1.6%.
Special Tax Regimes
Transitional Tax Resident
4-year exemption from tax on most foreign income for new tax residents.
Eligibility: Must be becoming a New Zealand tax resident for the first time (or after 10+ years absence).
Pros & Cons
Pros
- No capital gains tax
- 4-year foreign income exemption for new residents
- Stable English-speaking country
- High quality of life
- No social security contributions for employees
Cons
- 39% top income tax rate
- High cost of living
- Remote geographic location
- Small domestic market
- 15% GST with no reduced rates
Living Indicators
Cost of Living Index
Above average
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for New Zealand is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- New Zealand government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.