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New Zealand - What Tax Bracket?

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  • 01-07-2009 8:24am
    #1
    mp3ireland2
    Registered Users Posts: 1,793 ✭✭✭


    Hi,
    Anyone done the working holiday in New Zealand before, and therefore recommend what tax bracket i should put myself in to pay least tax..... Thinkin about putting down ME

    Thanks


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    #2
    watna
    Closed Accounts Posts: 10,367 ✭✭✭✭watna


    Emm, you can't really decide what tax bracket to put yourself in randomly. You get a tax code based on your circumstances (i.e. do you have a student loan or not, how many sources of income you have etc) If you put the wrong one in then you'll have to pay the IRD back (presuming you haven't done a runner). Unfortunately you have to pay the same tax as everyone else, whether you are on a WHV or not.

    Did you get the chart from the IRD to tell you which one to use? If you follow the flow chart I seem to recall it gave you a fairly definite answer. see here http://www.ird.govt.nz/how-to/taxrates-codes/earning-income-taxcode.html

    ME sounds about right to me anyway - as long as you earn between $24,000 and $48,000. If you earn over that it is tax code E.

    The tax system in NZ is weird. Because of the way they do it if you work for less than the 12 months of the year you will usually pay too much tax because they tax you as if you earn for the whole tax year. I started working in NZ last July and the tax year starts in April. When I did a tax return I got a good bit of money back for that. Make sure you're aware of that at the end of this tax year. You can do a tax return online and see if the IRD owe you any money or they owe you any money. I was very pleased they owed me so much!


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