Trust Tax Calculator NZ
This calculator estimates the tax payable on trustee income in New Zealand, where the trustee tax rate is 39 percent. From the 2024/25 income year, the rate at which trustees are taxed on income they retain in the trust rose to 39 percent, aligning it with the top personal tax rate and removing the advantage of sheltering income in a trust at a lower rate. There is one important exception: a de minimis rule means that trusts with trustee income of $10,000 or less in the year are taxed at 33 percent rather than 39, to reduce compliance costs for small trusts. This tool helps trustees and beneficiaries estimate the tax. You enter the trustee income, the income the trust earns and retains rather than distributing to beneficiaries, and the calculator applies the correct rate, returning the tax payable, the rate used, and the income left after tax. The results update as you type, so you can see the effect of the de minimis threshold. Use it to estimate a trust's tax bill, to compare retaining income in the trust against distributing it to beneficiaries who may be on lower rates, or to understand the trustee rate. A key point this reflects: income a trust distributes to beneficiaries in the year is generally taxed at each beneficiary's own marginal rate, not the trustee rate, so distributing income to beneficiaries on lower rates can reduce the overall tax, subject to the minor beneficiary and settlor rules. This calculator deals with the trustee income that is retained and taxed at the trustee rate. Trust taxation is complex and anti-avoidance rules apply; this is an estimate only, and you should confirm with an accountant.
Trustee income is taxed at 39%, or 33% if total trustee income is $10,000 or less (de minimis). Distributed beneficiary income is taxed at beneficiary rates. An estimate; trust tax is complex.
How it works
If the trust's trustee income for the year is $10,000 or less, the de minimis rule applies the 33 percent rate; above that, the full 39 percent trustee rate applies to the income. The tax is the income multiplied by the applicable rate, and the after-tax figure is the income that remains.
Worked example
For trustee income of $50,000, which is above the $10,000 de minimis threshold, the 39 percent rate applies. The tax is $50,000 times 0.39, which is $19,500, leaving $30,500 after tax. If the trustee income had been $9,000, the 33 percent rate would apply instead, giving tax of $2,970.
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