Independent earner tax credit calculator
The independent earner tax credit is up to $520 a year, or $10 a week, for New Zealand tax residents on middle incomes.
You get the full amount on income between $24,000 and $66,000. Above that it shrinks until it's gone at $70,000.
How it's calculated
- Under $24,000 there's no credit.
- From $24,000 to $66,000 you get $520.
- Above $66,000 the credit drops by 13% of each dollar over, reaching zero at $70,000.
An example
On $68,000 you're $2,000 over the abatement threshold. 13% of $2,000 is $260, so your credit is $260 a year.
Frequently asked questions
Who can't get the IETC?
You can't get it if you or your partner get Working for Families, if you get an income-tested benefit, or if you get NZ Super. A month with any of those payments rules out that whole month.
How do I get it?
Use the ME tax code (ME SL with a student loan) and your employer takes less PAYE each pay.
Do I need to be a New Zealand tax resident?
Yes. Inland Revenue describes the IETC as a tax credit for New Zealand tax resident employees with yearly income between $24,000 and $70,000.
Key terms
- IETC
- Independent earner tax credit.
- Abatement
- The way a credit reduces as your income goes up.
Up-to-date official data
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