Dividend Calculator NZ
This calculator works out exactly how much cash you actually receive from a New Zealand share dividend once imputation credits and resident withholding tax are accounted for, showing you why the figure in a dividend announcement is rarely the figure that lands in your bank account. Enter the number of shares you hold, the dividend per share, the imputation percentage attached to the payment (most NZ companies pay fully imputed dividends at 100%), and your own tax rate, which defaults to 33% for dividend income. The calculator returns the cash dividend actually paid, the imputation credit attached to it based on the 28% company tax rate, the gross dividend of cash plus credit, the resident withholding tax withheld to bring your total tax up to your rate, and the net dividend that lands in your hand. Add a share price and it also works out your dividend yield, so you can compare the income return across different shares. Use it to check a dividend statement, budget for dividend income, or see how imputation credits reduce the extra tax you owe on top of what the company has already paid. Your actual tax position depends on your total income and marginal tax rate for the year, and some dividends carry less than full imputation, so treat the result as a guide to your New Zealand dividend income rather than a substitute for your tax return.
Imputation credits are based on the 28% company tax rate. RWT shown is the top-up to your tax rate.
How dividend tax works in New Zealand
When a company pays a dividend from profit it has already paid tax on, it attaches imputation credits for that 28% company tax. Your gross dividend is the cash plus those credits. Tax is charged on the gross amount, usually at 33%. The imputation credit covers most of it, and the payer withholds a further 5% as resident withholding tax so the total reaches 33%. This stops the same profit being taxed twice.
Worked example
You hold 1,000 shares paying an 18 cent fully imputed dividend. The cash dividend is $180. The imputation credit is $180 times 28 divided by 72, which is $70. The gross dividend is $250. Tax at 33% is $82.50, the credit covers $70, so $12.50 of RWT is withheld. You receive $167.50 in the hand.
The formulas
- Cash dividend = shares times dividend per share
- Imputation credit = cash times 0.28 / 0.72 (when fully imputed)
- Gross dividend = cash + imputation credit
- RWT withheld = gross times your rate, less the imputation credit
Related calculators
- Investment Calculator: growth of an investment over time.
- Compound Interest Calculator: reinvested returns.
- Term Deposit Calculator: interest on a term deposit.
- CGT Calculator: tax on a capital gain.
- Understanding Dividends and Imputation: the background to this calculation.
- Dividend Income - How Shares Pay You (NZ): background on this topic.