NZ Dividend Tax Calculator 2026-27
When a New Zealand company pays you a dividend, it comes with imputation credits attached, representing the 28% company income tax already paid on those profits. This calculator works out your personal tax position on a dividend: it grosses up the cash amount to the pre-tax profit figure, applies your marginal income tax rate, deducts the imputation credits, and tells you whether you have additional tax to pay or are entitled to a refund. If your marginal rate is below 28%, the excess credits flow back to you as a refund through your IR3 return. If your rate is above 28%, you pay a top-up for the difference. At exactly 28%, a fully imputed dividend leaves no further liability. Enter the dividend you received, choose whether it is fully or partially imputed (or unimputed), and select your marginal income tax rate. The calculator also shows the outcome across all tax brackets so you can see exactly where the crossover falls.
Net tax position = tax on gross dividend minus imputation credits. Positive = additional tax due; negative = refund. Does not include RWT withheld at source (deducted separately - see note below).
Tax position across all brackets
| Marginal rate | Tax on gross | Less credits | Net position |
|---|
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
Scenario. You receive a $720 dividend from a New Zealand company. It is fully imputed. Your marginal income tax rate is 33%.
Step 1: Gross up. Gross dividend = $720 / 0.72 = $1,000. Imputation credits = $1,000 minus $720 = $280.
Step 2: Your tax. Income tax at 33% on $1,000 gross = $330.
Step 3: Apply credits. $330 minus $280 imputation credits = $50 additional tax to pay.
Step 4: RWT (if withheld). If the company also withheld RWT: 33% of $1,000 minus $280 imputation credit = $50 cash withheld at source. Claiming that RWT credit in your IR3 reduces your payment to zero.
At 39% (income over $180,000): tax = $390 minus $280 = $110 additional tax to pay (before RWT).
At 17.5%: tax = $175 minus $280 = $105 refund.
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.
- Australian Shares From NZ: the background to this calculation.