The Independent Earner Tax Credit is a tax credit of up to $520 a year for people earning between $24,000 and $70,000 who do not receive certain other support. It is worth about $10 a week and is designed to help middle income earners who miss out on other assistance.

Who is not eligible for the IETC?

You cannot claim the IETC if you receive Working for Families tax credits, an income tested benefit, NZ Super, a veteran's pension, or an overseas equivalent. It is aimed at independent earners who are not already receiving that support.

How is the IETC reduced?

You get the full $520 if your income is between $24,000 and $66,000. Above $66,000 it reduces by 13 cents for every dollar, reaching zero at $70,000. Below $24,000 you do not qualify.

IETC Calculator

This calculator works out whether you qualify for the Independent Earner Tax Credit (IETC) and how much you can claim. The IETC is a tax credit worth up to $520 a year, about $10 a week, for New Zealanders earning between $24,000 and $70,000 who are not already receiving other government support. You enter your annual income, and the calculator instantly shows your IETC for the year, the equivalent weekly amount, and your eligibility status. Between $24,000 and $66,000 you receive the full $520. Above $66,000 the credit reduces by 13 cents for every extra dollar earned, phasing out completely at $70,000. Below $24,000, or above $70,000, you are not entitled to anything. The IETC is only available if you do not receive Working for Families tax credits, an income-tested benefit, NZ Superannuation, a veteran's pension, or an overseas equivalent. You can take the credit through your tax code across the year, lifting your regular pay, or claim it as a lump sum from Inland Revenue after the tax year ends. Use this calculator to check your entitlement before adjusting your tax code, or to confirm what you should expect back at year end. Figures are based on current IRD thresholds and are indicative only, so confirm your exact position with Inland Revenue or a tax professional.

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Annual income

IETC for the year

Per week$0

Status--

You must not receive Working for Families, a main benefit, NZ Super, or an overseas pension to claim the IETC.

How the IETC works

The full credit is $520 a year, about $10 a week, for income between $24,000 and $66,000. From $66,000 it reduces by 13 cents per dollar earned, reaching zero at $70,000. Below $24,000 there is no entitlement. You can take it through your tax code during the year or claim it at the end of the year.

Worked example

On $40,000 you qualify for the full $520, about $10 a week. On $68,000 the credit is reduced by 13 cents for each of the $2,000 over $66,000, which is $260, leaving $260 for the year.

Related calculators

PAYE Calculator: take-home pay after tax.
Income Tax Calculator: income tax due.
Tax Bracket Calculator: your tax bands.
Working for Families Calculator: family tax credits.

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