New Zealand FBT rates (2026/27)

Fringe benefit tax is paid by employers on non-cash benefits such as work vehicles, low-interest loans and subsidised goods. There are three ways to calculate it: the single rate, the alternate-rate options, and the multi-rate (attribution) method that matches each employee's own tax rate. This page lists the rates for the 2026/27 year.

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 $12,530	11.73%
$12,531 to $40,580	21.21%
$40,581 to $55,980	42.86%
$55,981 to $129,680	49.25%
Over $129,680	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 2026-06-02.