IRD Tax Return 2026 Walkthrough: A Plain-English Guide for Kiwis

In NZ, most salaried workers don't need to file a tax return. The IRD's automatic assessment runs from May to July each year — they look at your PAYE, KiwiSaver, and any reported income, then send you a refund or a bill.

You do need to file if any of the following apply in the 2025/26 tax year:

• You're self-employed, a contractor, or have side-hustle income > $200.
• You earned rental income.
• You had untaxed investment income (overseas shares, P2P lending, crypto).
• You worked for a foreign employer.
• You want to claim donation rebates or working-from-home expenses.

Filing in myIR — step by step

1. Log into myIR at ird.govt.nz. If you don't have an account, create one with your IRD number.
2. Check the auto-assessment. If you only have salary income, IRD has already done the math. You'll see a refund, bill, or "$0 owed". Skip to step 7.
3. Click "More" → "File a tax return" → "Individual income tax return (IR3)".
4. Confirm income. myIR pre-fills PAYE income. Add any business / rental / overseas / investment income manually.
5. Add expenses — this is the bit most people skip and lose money on. Section 9.
6. Submit. myIR shows your assessed refund or bill instantly.
7. Set up direct credit if you're owed a refund. Bills are due February 7 of the following year.

Common deductions worth claiming

• Working from home: $0.95/m² of dedicated home-office space × work-from-home days. See the full WFH guide.
• Vehicle costs: Mileage at IRD's tier-one rate ($1.04/km in 2026, first 14,000 km) for business travel.
• Tools and equipment: Any item under $1,000 used wholly for income-earning work, deductible in the year of purchase.
• Professional subscriptions / union fees / accountancy fees.
• Income protection insurance premiums.

Donations: easy money

Donations over $5 to NZ-approved charities qualify for a 33.33% rebate. $1,000 donated = $333 back in your pocket.

Submit donation receipts in myIR under "Tax credits" → "Donation tax credit". Most charities issue a receipt automatically, but you have to actually claim them.

Late filing penalties

Standard penalty: $50 for first late return, escalating up to $500 for repeat offenders. Plus IRD compounds interest on unpaid tax at ~10.39%.

If you can't pay the bill, call IRD before the due date (0800 377 774). Installment plans are normally approved without drama.

Side hustles: the $200 trap

If you make over $200 in untaxed income (Uber, AirBnB, side gigs, selling on TradeMe regularly), you legally must declare it. Below $200 it's a hobby.

The catch: PAYE-deducted income from a second employer counts as "taxed" — you don't have to file just because you have two jobs.

Where Steady fits

If you're self-employed or have side income, tracking it through Steady gives you a category-tagged feed of business income/expenses. At tax time, export → categorise → done.

Disclaimer: General education only. Tax law is specific; talk to a chartered accountant if your situation is complex.