IRD Penalties and Interest Calculator

This calculator estimates the cost of paying tax late to Inland Revenue in New Zealand, combining the late payment penalties with use-of-money interest so you can see what a missed due date really adds up to. Paying tax late is more expensive than many people expect, because two separate charges stack on top of the tax you already owe. The late payment penalty is charged in steps: commonly one percent of the unpaid tax the day after the due date, and a further four percent if it is still unpaid after a week, so a short delay can cost five percent of the tax straight away. On top of that, use-of-money interest accrues daily on the overdue amount at a rate IRD sets and reviews periodically, usually higher than bank interest, so the longer the tax sits unpaid the more it costs. You enter the tax owed, how many days it is overdue, and the current use-of-money interest rate, and the calculator works out the penalties, the interest, and the total cost on top of the tax. Use it to understand the cost of delay and the value of paying on time or arranging an instalment plan early. Penalties can sometimes be remitted, and the UOMI rate changes, so treat this as an estimate and contact IRD if you cannot pay. General information, not tax advice.

Penalties shown as 1% then a further 4% after 7 days; UOMI accrues daily. Rates and rules change and penalties may be remitted. Estimate only, contact IRD if you cannot pay.