How to pay tax
Some types of income have the tax taken out (deducted) before you receive it. For all other income you need to declare it to Inland Revenue and pay the tax.
Pay tax online
If you have tax to pay, you can use:
- your bank’s online banking, or
- myIR to make credit or debit payments.
Log in to myIR — Inland Revenue
Other ways to pay your tax — Inland Revenue (IR)
Salary or wage income
You give your tax code to your employer and they deduct tax and pass it on to Inland Revenue during the year.
At the end of the tax year, your income is automatically assessed to make sure you paid the right amount.
For a list of all types of income that is taxed before you get paid:
My income is taxed before I get paid — Inland Revenue
Check your tax code is correct
Check that you’re on the right tax code or you could end up with a large bill at the end of the year. You can change your tax code with your employer at any time.
How much tax should be deducted
You can work out how much PAYE should be taken from your salary or wages each payday. PAYE includes both income tax and the ACC earners’ levy.
If you get a lump sum payment
If your employer pays you a lump sum payment, for example back pay or redundancy pay, tax will be deducted at the lump sum payment rate.
Savings and investment income
Some savings and investment income has some tax deducted before you get paid. Find out how this works for different types of savings and investments.
Self-employed or business income
If you’re self-employed or receive business income, you need to file a personal income tax return (IR3) each year. You declare how much you earn, work out the tax and pay it to Inland Revenue.
I am starting a new business — Inland Revenue
For a list of income types that are included:
My income is not taxed before I get paid — Inland Revenue
Schedular payments — contracting
If you get schedular payments you’ll have withholding tax deducted from your income before you receive it. At the end of the tax year, you need to file an income tax return (IR3) and the amount of withholding tax you have paid will be deducted from your tax bill.
Schedular payments — Inland Revenue
Provisional tax
Depending on the amount of tax you have to pay at the end of the tax year, you may be a provisional taxpayer the following tax year. This means you have to pay your tax in instalments throughout the year, rather than paying it all after the end of the tax year.
GST — Goods and services tax
GST is a flat-rate tax of 15% on goods and services. The seller will charge you the GST and pass it on to Inland Revenue.
If you sell goods or services, you may need to register for GST. You’ll need to:
- collect GST
- file GST returns
- pay the money to Inland Revenue.
Having problems filing or paying tax
If you’re having problems either filing your tax returns or paying your tax, check out what options there are to help you.
Who to contact for more help
If you need more help or have questions about the information or services on this page, contact the following agency.
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Inland Revenue
Contact and agency details