Donation Tax Credit Calculator NZ
This calculator works out the tax credit you can claim for donations to approved New Zealand charities and organisations. The government encourages giving by refunding a third of what you donate: you can claim a tax credit of 33.33 percent of the total donations you make in a tax year to approved donee organisations, such as registered charities, schools and many community groups. This is a genuine refund of tax you have already paid, not just a deduction, so a $300 donation effectively costs you only $200 after the $100 credit. There are a couple of limits: each donation must be $5 or more, you need a receipt, and the total donations you claim cannot exceed your taxable income for the year. This tool calculates the credit. You enter the total donations you made and your taxable income, and the calculator returns the tax credit you can claim, the amount of donations the credit is based on after applying the income cap, and the effective cost of your giving after the credit. The results update as you type. Use it to work out your refund at the end of the tax year, to plan your giving, or to see the real, after-credit cost of a donation. Claims are made through Inland Revenue, and since recent changes many people can submit donation receipts during the year through myIR rather than waiting until after the tax year ends. A useful insight the calculator shows: because the credit is a third of the donation, the true cost of giving is two-thirds of the headline amount, which can make a meaningful difference to how much you choose to give. Only donations to approved donee organisations qualify, so check the recipient is on Inland Revenue's list.
Credit = 33.33% of donations, capped at your taxable income. Each donation must be $5 or more with a receipt, to an approved donee organisation. Claim through Inland Revenue.
How it works
The donations you can claim are capped at your taxable income, so the lower of your donations and your income is used. The tax credit is one-third, 33.33 percent, of that amount. The net cost of your giving is the donations minus the credit, which works out to two-thirds of what you gave.
Worked example
If you donate $1,000 in a year and your taxable income is $70,000, your donations are well within the income cap, so the credit is 33.33 percent of $1,000, which is $333.33. That means your $1,000 of giving really costs you about $666.67 after the credit is refunded.
Related calculators
- Income Tax: income tax.
- Marginal Tax Rate: tax rates.
- GST Calculator: add or remove GST.
- Trust Tax: trustee tax.
- Donation Tax Credits NZ: background on this topic.