New Zealand FBT rates (2026/27)
This page sets out the fringe benefit tax (FBT) rates that apply in New Zealand for the 2026/27 tax year, the tax employers pay on non-cash perks given to staff such as work vehicles, low-interest loans and subsidised goods. It brings together all three ways FBT can be calculated so you can see which applies to your business: the single rate of 63.93% applied flat to every benefit, the short-form alternate and pooled rates of 49.25% used for non-attributed benefits and most employees, and the pooled rate of 63.93% for major shareholder-employees. It also sets out the full multi-rate (attribution) bands, which fix the FBT rate an employer pays on each employee's benefits according to that employee's all-inclusive remuneration, from 11.73% at the lowest band up to 63.93% for anyone earning over $130,723. Many employers use the simple single rate for the first three quarters of the year, then square up using the multi-rate method in the final quarter so each employee's benefits are taxed closer to their own marginal tax rate. Use the tables to check which rate or band applies before you run your FBT return, and see the linked income tax and PAYE pages for how these rates connect to personal tax. Rates are compiled from Inland Revenue's published schedules; confirm current figures and your filing method with Inland Revenue before filing.
Single rate and pooled rate
| Method | Rate |
|---|---|
| Single rate (all benefits) | 63.93% |
| Short-form alternate rate | 49.25% |
| Pooled rate, non-attributed benefits | 49.25% |
| Pooled rate, major shareholder-employees | 63.93% |
The single rate is the simplest: apply 63.93% to the taxable value of every benefit. Many employers use it for the first three quarters, then square up with the multi-rate method in the final quarter so each employee is taxed at their own rate.
Multi-rate (attribution) bands
Under the multi-rate method, the FBT rate is set by each employee's all-inclusive remuneration: their gross cash pay grossed up with the attributed benefits. The bands for 2026/27 are below.
| All-inclusive remuneration | FBT rate |
|---|---|
| $0 to $13,962 | 11.73% |
| $13,963 to $45,230 | 21.21% |
| $45,231 to $62,450 | 42.86% |
| $62,451 to $130,723 | 49.25% |
| Over $130,723 | 63.93% |
The multi-rate method usually costs less than the flat single rate for a workforce that is not all on the top tax rate, because lower-paid staff attract a lower FBT rate. The trade-off is more calculation in the final quarter.
How it relates to pay tax
FBT mirrors the personal tax system: the top FBT rate of 63.93% grosses up the 39% top income tax rate so a benefit is taxed at roughly the same level as cash salary would be. For the underlying pay rates, see income tax by bracket and the PAYE calculator.
Use and cite
Free to use and cite with a link to this page. Part of our research and reference data, reviewed whenever Inland Revenue updates the FBT schedules. Indicative only; confirm current rates and your filing method with Inland Revenue.
Compiled from Inland Revenue's published FBT rate schedules. Last reviewed 2026-08-26.