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Money Basics

The New Migrant Money Setup Checklist

🧭 Your first money steps in New Zealand

Moving to New Zealand means setting up your money life almost from scratch, and doing it in the right order saves you tax, stress and delay. The first few weeks are about identity and access: getting an IRD number so your pay is taxed correctly, and opening a New Zealand bank account so your wages have somewhere to land. From there you settle the bigger questions: when you become a New Zealand tax resident, whether you qualify for the transitional resident exemption that shelters most of your overseas income for up to four years, how PAYE and tax codes work on your New Zealand pay, whether you can join KiwiSaver, whether Working for Families can help if you have children, and when you become eligible for publicly funded healthcare. This guide walks through each step in plain terms, with New Zealand figures checked against official sources, so you can get set up quickly and avoid the traps that cost new arrivals money. It applies to migrants from any country. If you are moving from Australia, a few rules differ, such as the Special Category Visa and superannuation transfer, which we cover separately.

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Key Point: Get your IRD number before your first payday. Without one, your employer must tax you at the no-notification rate of 45%, far more than almost anyone should pay, and you will wait for a refund rather than keep the money now.

Step 1: Get an IRD number

An IRD number is your personal tax number, and you need one to be paid correctly, to open some accounts, to join KiwiSaver and to claim Working for Families. If you start a job without giving your employer an IRD number and a completed IR330 tax code form, they are required to deduct tax at the no-notification rate of 45% on every dollar. That is why the IRD number is the very first task on the list.

Two ways to apply

Process When to use it How it works
New arrival You have recently arrived and applied by the arrival date on your visa Inland Revenue checks your identity directly with Immigration New Zealand, so you do not have to send the same documents twice
Living in New Zealand You missed the new arrival deadline, or your visa has changed You verify your identity in person with an AA driver licensing agent, then receive your IRD number within about 10 working days of applying online

For the living in New Zealand process you generally need one primary identity document (such as a current overseas passport with a New Zealand visa) and one supporting document. Once you apply, you have 60 days to take your physical identity documents to an AA driver licensing agent to be verified. Documents that are not in English must be translated by an approved translator.

💡 Apply before you start work

Applying is free, and you can do it as soon as you arrive. Give your employer your IRD number and a completed IR330 tax code form before your first pay run. If your number arrives late, ask your employer to correct the earlier deductions or square it up through your end of year assessment.

Step 2: Open a New Zealand bank account

You need a New Zealand bank account to receive wages, pay rent and set up direct debits for power, phone and other bills. Every bank must confirm your identity and, usually, an address, under anti money laundering rules. You can often start the application from overseas before you arrive and finish it once you are in the country.

What banks usually ask for

  • Photo identity: a signed passport is the standard document. Bring your visa or a letter from Immigration New Zealand if it is not shown in your passport.
  • Proof of address: a recent document (generally within three months) showing your name and address, such as a power, water, phone or internet bill, or a tenancy agreement. If you have just arrived and cannot show a New Zealand address yet, talk to the bank, as most accept an overseas address or additional proof to get you started.
  • Tax details: your New Zealand IRD number, and sometimes your overseas tax identification number, so interest can be taxed at the correct rate.
⚠️ Give the bank your IRD number and RWT rate

If you do not give the bank your IRD number, tax on the interest your savings earn (resident withholding tax) is deducted at the highest no-notification rate. Provide your IRD number and choose the withholding rate that matches your income so you are not overtaxed on your savings.

📋 Tax residency, PAYE and the transitional resident exemption

Once you are earning, two questions decide how much tax you pay: are you a New Zealand tax resident, and does the transitional resident exemption apply to your overseas income. Getting these right can be worth thousands of dollars in your first years here.

When you become a New Zealand tax resident

You become a New Zealand tax resident under either of two tests:

  • The 183 day rule: if you are present in New Zealand for more than 183 days in any 12 month period, you are a tax resident from the first of those days. Parts of days, including the days you arrive and leave, count as whole days, and the days do not need to be consecutive.
  • The permanent place of abode test: if you have a permanent place of abode in New Zealand, a home you can live in with enduring ties to the country, you are a tax resident regardless of how many days you spend here.

New Zealand tax residents are taxed on their worldwide income. That sounds alarming for a new migrant with overseas savings, investments or property, which is exactly why the transitional resident exemption exists.

The transitional resident exemption

If you are a new migrant, or a New Zealander returning after a long time away, you may qualify as a transitional resident. During the exemption, most of your foreign income is not taxed in New Zealand at all, even though you are a tax resident here.

Who qualifies: you must not have been a New Zealand tax resident at any time in the 10 years before you qualified as a resident, and you must not have used the exemption before. Broadly, that means genuine new migrants and long absent New Zealanders. If your partner is a transitional resident and either of you claims Working for Families, the exemption ends.

The exemption runs for up to 48 months, roughly four years, measured to the end of the fourth year after the month you become a tax resident. During that window, the following types of foreign income are exempt from New Zealand tax:

Foreign income Treated during the exemption
Overseas interest and dividends Exempt
Overseas rental income Exempt
Foreign investment fund (FIF) income Exempt
Foreign superannuation lump sum withdrawals Exempt (a separate four year window applies)
Overseas employment or personal services income NOT exempt, this is still taxable
All New Zealand sourced income (including your NZ salary) NOT exempt, taxed as normal through PAYE
⚠️ The Working for Families trade-off

You cannot keep the transitional resident exemption and receive Working for Families Tax Credits (including Best Start) at the same time. If you or your transitional resident partner claim Working for Families, the exemption stops. Weigh the tax you save on your foreign income against the Working for Families you would receive, because you have to choose one.

PAYE and choosing the right tax code

Your New Zealand salary or wages are taxed through PAYE, where your employer deducts income tax and the ACC earners' levy before you are paid. The amount deducted depends on the tax code you give on your IR330 form. For the 2026/27 tax year the income tax rates are:

Income Range Tax Rate
$0 to $15,600 10.5%
$15,601 to $53,500 17.5%
$53,501 to $78,100 30%
$78,101 to $180,000 33%
$180,001 and above 39%

For most new migrants the right code for a single main job is M. Add SL only if you have a New Zealand student loan (most migrants do not). If you take a second job, use a secondary code (SB, S, SH, ST or SA) chosen from your total income across all jobs. The ACC earners' levy of 1.75% of your gross pay is deducted alongside the tax.

💡 Overseas student loans do not use SL

The SL part of a tax code is only for a New Zealand student loan from StudyLink. A loan you took out overseas is not a New Zealand student loan, so you do not add SL for it. Use plain M for a single main job.

🏦 KiwiSaver, Working for Families, healthcare and budgeting

With tax sorted, the next steps are the entitlements and savings that help you settle. What you can access depends heavily on your visa, so check each one against your own status.

KiwiSaver: can you join?

KiwiSaver is New Zealand's workplace retirement savings scheme, and joining is one of the best value moves a resident can make, because your employer and the government both add to what you save. But eligibility depends on your immigration status.

Who can join: you must be a New Zealand citizen, or entitled to live in New Zealand indefinitely (for example on a residence class visa), and living or normally living in New Zealand. You cannot join KiwiSaver on a temporary, visitor, work or student visa.

If you are eligible and start a new job, you are usually automatically enrolled and can opt out between the end of week two and week eight if you choose. From 1 April 2026 the default employee contribution rate is 3.5% of your gross pay, and your employer must contribute at least 3.5% as well. If you contribute at least $1,042.86 over the KiwiSaver year, the government adds its annual contribution of 25 cents per dollar, up to a maximum of $260.72.

💡 On a work visa you may still save, just not in KiwiSaver

If your visa means you cannot join KiwiSaver yet, you can still save through an ordinary managed fund and switch to KiwiSaver once you gain residence. That keeps your retirement saving going while you wait to become eligible.

Working for Families if you have children

Working for Families is a set of tax credits that top up the income of families with dependent children. If you have children, it can be worth a lot, but the residency rules matter for new migrants.

  • You, the caregiver, generally must have been a New Zealand resident and present in New Zealand continuously for at least 12 months at some time, and be a New Zealand tax resident for the period you claim. Alternatively, you can qualify if your children are both resident and present in New Zealand throughout the period.
  • Your children must be New Zealand residents and present in New Zealand.
  • If you or your children are here only on a temporary permit or visa, you are not entitled to Working for Families.

Remember the trade-off from the previous section: claiming Working for Families ends the transitional resident exemption on your overseas income, so a family with significant foreign income should compare the two before claiming.

Healthcare eligibility

Publicly funded healthcare, including hospital care and subsidised doctor visits, is available to people who meet the eligibility rules. As a new migrant your eligibility depends on your visa:

Your status Publicly funded healthcare
New Zealand citizen or residence class visa holder Eligible
Work visa for two years or more Eligible (the two years can include time already spent here legally)
Australian citizen or permanent resident intending to stay two years or more Eligible
Visitor, student or short work visa Generally not eligible, so you need travel or health insurance
⚠️ Being eligible is not the same as everything being free

Even when you are eligible, adults usually pay a part charge to see a general practitioner, and prescriptions and dental care for adults are not fully covered. Budget for these everyday health costs, and consider health insurance if your visa does not make you eligible for public services.

Budgeting for New Zealand living costs

New Zealand living costs, especially rent, can surprise new arrivals. A simple way to plan is to split your take-home pay across housing, essentials and savings, then adjust to your city. Here is an illustrative monthly budget for a single person taking home $4,000 a month, to show the method rather than exact prices:

Category Illustrative monthly amount
Rent (room or shared flat) $1,600
Food and groceries $700
Power, phone and internet $300
Transport $400
Savings and emergency fund $600
Everything else $400

Set up a separate savings account for a starter emergency fund from your very first pay, because setup costs like a rental bond, appliances and a car often land in the first few months. Use the budget and cost of living tools listed at the end of this guide to build a plan for your own city and income.

🔢 Worked New Zealand examples

These examples put the steps together. The figures use the current 2026/27 rates, and the arithmetic is worked through so you can follow the method.

1
Priya starts work: the cost of not having an IRD number

Situation: Priya arrives on a skilled work visa and starts a $70,000 job. Her IRD number has not come through, so she has not given her employer an IR330. Her employer must use the no-notification rate.

Tax with no IRD number (45% no-notification rate)

$70,000 × 45% = $31,500 deducted for the year

Tax once she gives an IRD number and code M

First $15,600 @ 10.5% = $1,638
Next $37,900 @ 17.5% = $6,633
Next $16,500 @ 30% = $4,950
Correct PAYE: $1,638 + $6,633 + $4,950 = $13,221

The difference

Over-deducted while on 45%: $31,500 - $13,221 = $18,279
Getting her IRD number sorted protects $18,279 of cashflow this year
The lesson: The extra tax is refundable, but Priya would wait months for it. Applying for the IRD number before payday keeps the money in her pocket now, when a new migrant needs it most.
2
The Chen family and the transitional resident exemption

Situation: The Chens move from Singapore and become New Zealand tax residents. They had not lived in New Zealand in the previous 10 years, so they qualify as transitional residents. They keep an overseas rental property earning $24,000 a year and overseas shares paying $6,000 in dividends. Their New Zealand salary sits in the 33% tax band.

Foreign income sheltered by the exemption

Overseas rent: $24,000
Overseas dividends: $6,000
Total foreign income exempt: $30,000 a year
Tax avoided at their 33% marginal rate: $30,000 × 33% = $9,900 a year
Over the full up to 48 month window: about $9,900 × 4 = $39,600
⚠️ Weigh it against Working for Families

The Chens have two children and could claim Working for Families, but doing so would end the exemption. If their Working for Families entitlement would be less than $9,900 a year, keeping the exemption is worth more while it lasts. Their New Zealand salary is still taxed through PAYE either way, because the exemption only covers foreign income.

3
Tomas joins KiwiSaver on a resident visa

Situation: Tomas holds a residence class visa and earns $60,000. Because he is entitled to live here indefinitely, he can join KiwiSaver, and he is automatically enrolled when he starts his job at the default 3.5% rate.

What goes into his KiwiSaver in the first year

His own contribution: $60,000 × 3.5% = $2,100
Employer contribution: $60,000 × 3.5% = $2,100 (employer superannuation contribution tax is deducted from this)
Government contribution: his own contribution is above $1,042.86, so he gets the maximum $260.72
Into his account: about $2,100 + $2,100 + $260.72 = $4,460.72 for $2,100 of his own money
💡 A resident visa unlocks the free money

Tomas puts in $2,100 but sees more than double that go into his account, before any investment growth. If he were still on a work visa he could not join KiwiSaver at all, which is a strong reason to enrol as soon as he becomes eligible.

4
The Okafor family: Working for Families and healthcare timing

Situation: The Okafors arrive on residence class visas with two young children. They want to know when they can claim Working for Families and when they can use public healthcare.

Working for Families

Caregiver test: resident and present in New Zealand continuously for 12 months, and a New Zealand tax resident for the period claimed
Children test: both resident and present in New Zealand
As new residents they generally qualify once they have been here continuously for 12 months, or sooner if the children already meet the residence test

Healthcare

Residence class visa holders are eligible for publicly funded health services straight away
No two year wait applies to them, unlike some work visa holders
The lesson: Residence unlocks healthcare immediately, but Working for Families usually has a 12 month residence and presence test first. Knowing the timing lets the Okafors plan their first year and avoid assuming a payment they cannot yet receive.

Sources

Figures and rules in this guide were checked in July 2026 against the following official and primary sources:

  • Inland Revenue, "New arrival to New Zealand - IRD number application" and identity document requirements (ird.govt.nz)
  • Inland Revenue, "Temporary tax exemption" for transitional residents (10 year rule, up to 48 month window, exempt and non-exempt income, Working for Families trade-off), ird.govt.nz/roles/nz-tax-residents/exemption
  • Inland Revenue, "Tax residency status for individuals" (the 183 day rule and permanent place of abode), ird.govt.nz
  • Inland Revenue, income tax rates for 2026/27, no-notification rate of 45%, and ACC earners' levy of 1.75% (ird.govt.nz)
  • Inland Revenue, "Joining KiwiSaver" eligibility, default 3.5% contribution rate from 1 April 2026, and government contribution of 25 cents per dollar up to $260.72 (ird.govt.nz)
  • Inland Revenue, Working for Families "Residency requirements" (12 month residence and presence test), ird.govt.nz/working-for-families
  • Health New Zealand Te Whatu Ora, "Guide to eligibility for publicly funded health services" (tewhatuora.govt.nz)
  • Immigration New Zealand, visa categories and residence (immigration.govt.nz)

Note: eligibility can depend on the exact terms of your visa, and Working for Families and KiwiSaver settings are reviewed over time. Confirm your own situation with Inland Revenue, Immigration New Zealand and your bank. This guide is general information, not tax or immigration advice.

Related tools and guides

🎯 Test Your Knowledge

Complete this 10-question quiz to check your understanding of setting up your money as a new migrant

1. If you start a job without giving your employer a tax code or IRD number, what rate must they deduct?
10.5%
33%
45%
39%
2. How long can the transitional resident exemption on most foreign income last?
6 months
Up to 48 months (about 4 years)
Up to 24 months
Up to 10 years
3. Which of these is NOT covered by the transitional resident exemption?
Overseas interest and dividends
Overseas rental income
Income you earn overseas from employment or personal services
Foreign investment fund income
4. To qualify as a transitional resident, how long must you have been a non-resident beforehand?
At least 6 months
At least 2 years
At least 10 years
At least 4 years
5. Who can join KiwiSaver?
Anyone on a work or student visa
NZ citizens and people entitled to live in NZ indefinitely who live here
Only people born in New Zealand
Anyone who has visited New Zealand
6. What happens to the transitional resident exemption if you claim Working for Families?
Nothing, you keep both
You lose the exemption on your foreign income
The exemption doubles in length
You must repay past tax
7. What does the 183 day rule mean for tax residency?
You pay no tax for your first 183 days
You are a NZ tax resident if you are present here more than 183 days in any 12 month period
You must file a tax return within 183 days
You must live here 183 days before opening a bank account
8. What do banks usually accept as proof of address from a new migrant?
Your overseas birth certificate
A recent utility bill showing your name and NZ address
A photo of your house
Your employer's IRD number
9. What is the caregiver residency requirement for Working for Families?
Have lived here for 10 years
Be a NZ resident and present in NZ continuously for at least 12 months
Hold any temporary work visa
Be present for at least 183 days
10. When is a work visa holder eligible for publicly funded health services?
Immediately on arrival on any visa
When their work visa is for 2 years or more
Only after 5 years
Never, unless they become a citizen

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