Compare the PAYE deducted from your pay with the tax actually due on your year's income, to see whether Inland Revenue owes you a refund.
Tax year 2025/26 (assessed now) and 2026/27Rules checked: November 2026How we calculate
Estimated refund$812
Tax on your income
$6,788
Tax already deducted
$7,600
2025/26 tax year (1 April – 31 March)
Total income
$48,000.00
Income tax
$7,308.00
Independent earner tax credit
-$520.00
Tax payable
$6,788.00
Less tax deducted
-$7,600.00
Refund
$812.00
Inland Revenue issues automatic assessments for most salary and wage earners in batches from early June; refunds are paid automatically.
Small amounts of tax to pay (under $200 in some cases) may be written off by IRD.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency.
How the estimate works
Add up your income for the tax year (1 April – 31 March): salary and wages, plus interest and dividends.
Work out income tax at 10.5% to 39%.
Subtract the independent earner tax credit if you qualify (income $24,000–$70,000 and no Working for Families or benefit).
Compare with tax already deducted — PAYE (excluding ACC) and resident withholding tax on interest.
Worked example: a part-year worker
2025/26: $48,000 of wages, $7,600 PAYE deducted, IETC eligible
Tax on $48,000 is $1,638 + 17.5% of $32,400 = $7,308. The $520 independent earner tax credit brings it down to $6,788. With $7,600 already deducted, the refund is about $812.
Estimated refund$812
Tax on your income
$6,788
Tax already deducted
$7,600
2025/26 tax year (1 April – 31 March)
Total income
$48,000.00
Income tax
$7,308.00
Independent earner tax credit
-$520.00
Tax payable
$6,788.00
Less tax deducted
-$7,600.00
Refund
$812.00
Common reasons for a refund or a bill
Secondary codes: if the secondary code you chose was too low for your total income, expect tax to pay; too high, expect a refund.
Starting or stopping work part-way through the year: PAYE assumes you earn the same all year.
Interest income: if your RWT rate was lower than your marginal rate, you may owe a little.
IETC not claimed through the ME code is added at the end of the year.
Tips
Update your bank account in myIR so refunds arrive automatically.
Check your income summary for missing or duplicated employers before the assessment is issued.
Donations tax credits (33.33% of donations over $5) are claimed separately, up to four years back.
Questions people ask
Why would I get a tax refund in NZ?
Usually because of a wrong or secondary tax code, a part year of work, missing out on the independent earner tax credit during the year, or a period on the ND rate.
Do I need to file a return?
Most salary and wage earners don't. Inland Revenue issues an automatic assessment after the year ends on 31 March and pays refunds directly into your bank account.
When are refunds paid?
Automatic assessments are released in batches from early June to the end of July, and refunds are paid into your bank account.
Is ACC included?
No. The ACC earners' levy isn't refunded through the income tax assessment, so leave it out of the PAYE figure.
This is an estimate based on published rates, not tax or financial advice. Your payslip or assessment may differ. We are an independent site, not affiliated with any government agency. Read the full disclaimer.
