Leaving NZ Tax Refund Calculator

If you are leaving New Zealand part way through the tax year, there is a good chance Inland Revenue owes you money, and this calculator estimates how much. The reason is the way PAYE works. Every pay, your employer deducts tax as though you will keep earning at that rate for the full year from 1 April to 31 March. When you leave the country, or simply stop working here, after only part of the year, your actual income for the year is smaller, so more of it sits in the lower tax brackets than the PAYE deductions assumed. The result is that you have usually paid too much tax, and the overpayment is refundable. This is common for people on working holiday visas, anyone heading overseas long term, and seasonal or contract workers finishing up before March. You enter the salary rate you were being paid at, the number of weeks you worked in New Zealand during the current tax year, and, if you know it, the total tax already deducted from your payslips. The calculator estimates the tax that was deducted, the tax you actually owe on your part-year income, and the refund in between. It also allows for the Independent Earner Tax Credit if your income falls in the eligible band. To claim, ask Inland Revenue for an early assessment or file an IR3, tell them your departure date, and make sure your bank account and myIR details are up to date so the refund can reach you. This is an estimate to plan around, not an official assessment.

Income tax only; the ACC levy is not refunded this way. If you do not enter the tax deducted, it is estimated from your salary rate and weeks worked. An estimate, not an IRD assessment.