NZ IETC calculator (independent earner tax credit)
The independent earner tax credit (IETC) is worth up to $520 a year ($10 a week) for New Zealand tax residents earning $24,000 to $66,000. It reduces by 13 cents for every dollar over $66,000 and runs out at $70,000. Enter your income for the tax year and the months you were eligible to see your credit. The calculation follows the Income Tax Act formula and IRD's rules.
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CalculatorWho can get itExamplesFAQ
Who can get the IETC
- You're a New Zealand tax resident with income (before tax, not counting losses brought forward) of $24,000 to $70,000 for the tax year. The current thresholds apply from 31 July 2024.
- It counts income from salary or wages, self-employment, investments, ACC, paid parental leave and similar sources.
- You can't get it for any month you or your partner got Working for Families, an income-tested benefit, NZ Super or a Veteran's Pension (or an overseas equivalent). It's worked out on whole months.
- Get it during the year with the ME or ME SL tax code for your main job, or at the end of the year through your income tax assessment or IR3.
Examples
| Income and situation | IETC |
|---|---|
| $24,000 to $66,000, eligible all year ($10 a week) | $520 |
| $68,000: $520 − 13c × $2,000 | $260 |
| $70,000 or more, or under $24,000 | $0 |
| Benefit for 3 months, then worked the rest of the year at $50,000 (IRD: eligible for the remaining 9 months) | $390 |
FAQ
How much is the independent earner tax credit?
Up to $520 a year, or $10 a week, if your income for the tax year is $24,000 to $66,000. Between $66,001 and $70,000 it reduces by 13 cents for every dollar over $66,000, so $68,000 of income gives $260. It’s nil from $70,000.
Who is eligible for IETC?
New Zealand tax residents earning $24,000 to $70,000 who, for that month, aren’t getting Working for Families, an income-tested benefit, NZ Super or a Veteran’s Pension, and whose partner isn’t getting Working for Families.
How do I get the IETC?
If you earn salary or wages, choose the ME (or ME SL) tax code for your main job and your PAYE drops by up to $10 a week. Otherwise IRD includes it in your end-of-year income tax assessment, or you claim it on your IR3 if you’re self-employed.
What is the IETC threshold for 2026?
From 31 July 2024 the IETC is available on income from $24,000 to $70,000, with the full $520 up to $66,000. These thresholds apply to the tax years ending 31 March 2026 and 31 March 2027.
Is IETC worked out monthly?
Yes, on whole months. If you got a benefit or Working for Families at any time in a month, you miss out for that whole month. IRD’s example: a benefit for 3 months means IETC for the remaining 9 months.
Sources (checked 17 Oct 2026): IRD Independent earner tax credit (IETC); Getting the IETC if you earn salary or wages; Getting the IETC if you move from a benefit to a job; Income Tax Act 2007 s LC 11.
General information, not tax advice. This is for tax years ending 31 March 2026 and later. The 2024-25 year was split because the thresholds changed part-way through, so use IRD's assessment for that year. IRD works out your final entitlement in your income tax assessment.