NZ Dividend Tax Calculator 2025-26

How NZ dividend imputation works

New Zealand companies pay income tax at 28% on their profits. When they distribute those after-tax profits as dividends, they can attach imputation credits to the payment, representing the tax already paid at the company level. This prevents double taxation: the shareholder grosses up the cash dividend to the pre-tax profit amount, pays personal income tax at their marginal rate on that gross figure, then deducts the imputation credits.

For a fully imputed dividend, every dollar of cash dividend carries 28/72 cents of imputation credits. A $72 cash dividend comes with $28 of credits, grossing up to $100. Your personal tax is calculated on the $100, then the $28 credit is subtracted.

For a partially imputed dividend, only a portion of the maximum credits are attached. You enter the imputation credit rate as a percentage of the maximum.

For an unimputed dividend, no credits are attached. The company may not have paid NZ company tax on those profits (for example, on offshore income or capital gains). RWT at 33% is typically withheld in full.

RWT: the separate withholding mechanism

RWT (Resident Withholding Tax) is withheld by the company before the cash reaches you. For dividends, the rate is 33% of the gross dividend. For a fully imputed dividend, the imputation credits of 28% are absorbed into this, so the company only withholds 5% in cash (the 5-point gap between 33% and 28%). You receive a credit for both the imputation credits and any RWT withheld when you file your IR3 return.

Worked example

What this calculator does and does not cover

• It calculates the imputation credit offset against your marginal income tax rate on the gross dividend.
• It does not automatically deduct RWT withheld at source; that credit is noted separately.
• It does not account for the interaction with your other income (which determines your true marginal rate).
• PIE funds offer an alternative: income from a PIE is capped at your Prescribed Investor Rate (PIR), which cannot exceed 28%, potentially saving high earners tax versus holding shares directly.
• Results are indicative only. Confirm your position with a tax professional or Inland Revenue.

Official sources

• Inland Revenue – dividends and imputation credits
• Inland Revenue – individual income tax rates
• Inland Revenue – RWT on dividends

Frequently asked questions

What are imputation credits on NZ dividends?

When a NZ company pays 28% corporate tax on its profits, it can attach imputation credits to dividends. Shareholders use these credits to offset their personal income tax, avoiding double taxation on the same profits.

What happens if my tax rate is lower than 28%?

If your personal rate is below 28%, the imputation credits exceed your tax liability, so you receive a refund for the difference through your IR3 return. At 17.5%, you get a refund of 10.5 cents per $1 of gross dividend.

Do I need to declare dividend income in my NZ tax return?

Yes. Dividends from NZ companies must be declared in your IR3. Inland Revenue uses the gross dividend (cash plus imputation credits) as your assessable income, then credits the imputation credits against your tax. Any RWT withheld is also credited.

Related calculators

• Imputation Credit Calculator: gross up a dividend and check the imputation credit amount.
• Effective Tax Rate Calculator: your blended rate across all income.
• Dividend Yield Calculator: calculate yield from share price and dividend.
• Shareholder Salary Calculator: compare salary vs dividend for company owners.
• Company Tax and Imputation Calculator: calculate company tax and available imputation credits.