Boarder / Flatmate Income Standard-Cost Calculator

This calculator works out whether the money you receive from a boarder is taxable in New Zealand using the IRD standard-cost method, and the tax on any income above the threshold. Taking in a boarder is a common way to ease the mortgage, and the good news is that much of what you charge is not taxable, because IRD recognises that hosting a boarder costs money for food, power and wear on the house. To keep it simple, IRD publishes a weekly standard cost per boarder, and only the amount you charge above that standard cost counts as taxable income. Charge at or below the standard cost and there is generally no tax to pay and nothing to declare. There is a slightly lower standard cost for the third and any later boarders. You enter the number of boarders, the weekly amount each pays, and your marginal tax rate, and the calculator works out your total boarder income, the standard-cost allowance, the taxable portion above it, and the tax on that. It also helps you see the difference from a flatmate, who simply shares household costs and is not taxable at all. The standard-cost figures change each year, so confirm the current IRD amounts for your tax year. This is general information, not tax advice.

Third and later boarders use a lower standard cost (about $182/wk). Figures change yearly; confirm current IRD amounts. Flatmates sharing costs are not taxable. General information only.