IRD Numbers and Tax for International Students in New Zealand: A Complete Guide (2026)

## Quick Facts - **IRD number required for**: All international students who intend to work in New Zealand, earn interest from a New Zealand bank account, or receive a student allowance or scholarship. You can apply for an IRD number even before you arrive. - **Tax residency**: International students are generally considered non-residents for tax purposes if they have a permanent home overseas and are in New Zealand for fewer than 183 days in any 12-month period. However, income earned in New Zealand is still taxable here. - **Income tax rates for 2026**: For the 2026 tax year (1 April 2025 to 31 March 2026), the PAYE tax rates for employees are: 10.5% on income up to NZD $14,000, 17.5% on income from NZD $14,001 to $48,000, 30% on income from NZD $48,001 to $70,000, 33% on income from NZD $70,001 to $180,000, and 39% on income over NZD $180,000. - **Minimum wage 2026**: As of 1 April 2025, the adult minimum wage is NZD $23.15 per hour. This rate is expected to be reviewed in April 2026, with an increase likely. The training and starting-out minimum wage is NZD $18.52 per hour. - **Student loan and scholarship tax**: Scholarships and student allowances from the New Zealand government are generally tax-free for full-time students. However, scholarships from private organisations or overseas governments may be taxable. - **Tax refunds**: Many international students overpay tax because their employer uses the wrong tax code (e.g., 'M' instead of 'CAE' for casual agricultural employees) or because they work irregular hours. You can claim a tax refund through Inland Revenue (IRD) at the end of the tax year. - **Tax code for students**: The most common tax code for international students working part-time is 'M' (main job). If you have a second part-time job, use 'SB'. If you are a casual agricultural worker, use 'CAE'. Using the wrong code can lead to underpayment or overpayment of tax. ## Understanding the IRD Number An IRD number is your unique tax identification number in New Zealand. It is issued by Inland Revenue (IRD), the government department responsible for tax collection. Every person who earns income in New Zealand — including international students — must have an IRD number. ### Why do international students need an IRD number? - **To work legally**: Your employer must deduct PAYE (Pay As You Earn) tax from your wages. Without an IRD number, your employer will deduct tax at the 'no-notification' rate of 45%, which is significantly higher than the standard rates. - **To open a bank account**: Most New Zealand banks require an IRD number to open an interest-bearing savings account. Without it, interest income is taxed at 45% instead of the standard 10.5% to 33% depending on your total income. - **To receive a student allowance or scholarship**: If you are eligible for a New Zealand student allowance or a government-funded scholarship, you need an IRD number to receive the payments. - **To file a tax return**: If you have overpaid tax (common for students with irregular work hours), you need an IRD number to file a personal tax summary and claim a refund. ### How to apply for an IRD number You can apply for an IRD number online through the Inland Revenue website (ird.govt.nz) or by post. The process is straightforward: 1. **Online application**: Complete the online form on the IRD website. You will need to provide your full name, date of birth, contact details, and proof of identity (e.g., passport number). The IRD number is usually issued within 2–3 business days. 2. **Postal application**: Download and complete the IR742 form (Application for an IRD Number). Send it along with certified copies of your passport and visa to Inland Revenue. Processing takes 8–10 business days. 3. **In-person**: Some banks and NZ Post outlets offer IRD number application services. Check with your local branch. **Important**: You do not need to be in New Zealand to apply for an IRD number. You can apply once you have accepted an offer of place and have a valid student visa or visa approval letter. ## Tax Obligations for International Students International students who work in New Zealand are subject to the same tax rules as New Zealand residents for income earned in the country. However, there are some important distinctions. ### Tax residency rules Your tax residency status determines which income is taxable in New Zealand. The general rule is: - **Non-resident for tax purposes**: You are considered a non-resident if you have a permanent home outside New Zealand and are present in New Zealand for fewer than 183 days in any 12-month period. As a non-resident, you are only taxed on New Zealand-sourced income (e.g., wages from a part-time job, interest from a New Zealand bank account). - **Resident for tax purposes**: If you are in New Zealand for 183 days or more in a 12-month period, you become a tax resident. This means your worldwide income is taxable in New Zealand (though you may get a credit for foreign tax paid). Most international students on a one-year or two-year programme will remain non-residents for tax purposes. However, if you stay longer (e.g., for a three-year degree followed by a Post Study Work Visa), you may become a tax resident. ### Income that is taxable As an international student, you must pay tax on: - **Wages and salaries**: From any part-time, casual, or full-time work in New Zealand. - **Self-employment income**: If you operate a small business (e.g., tutoring, freelance work), you must register as a sole trader and file an IR3 tax return. - **Interest and dividends**: From New Zealand bank accounts or investments. - **Rental income**: If you own property in New Zealand and rent it out. - **Scholarships and grants**: Only if they are from private or overseas sources. Government-funded scholarships (e.g., New Zealand Scholarships) are tax-free. ### Income that is tax-free - **Student allowance**: From StudyLink (the government student loan and allowance provider) is tax-free if you are a full-time student. - **Government-funded scholarships**: Such as the New Zealand Commonwealth Scholarships or university-specific scholarships funded by the government. - **Gifts**: From family or friends (not from an employer). - **Lottery winnings**: In New Zealand, lottery winnings are tax-free. ## Tax Codes and PAYE When you start a job in New Zealand, your employer will ask you to complete a Tax Code Declaration (IR330 form). This tells your employer which tax code to use when deducting PAYE from your wages. ### Common tax codes for students - **M**: Main job (use this for your primary part-time job). - **SB**: Secondary job (use this for any additional part-time jobs). - **CAE**: Casual agricultural employee (use this if you work in seasonal agricultural or horticultural jobs, like fruit picking or vineyard work). - **ST**: Student (use this if you are a full-time student and your annual income is expected to be below NZD $14,000). - **F**: Farm and horticultural worker (use this for specific seasonal work). ### How to choose the right tax code - If you have only one part-time job, use **M**. - If you have two part-time jobs, use **M** for the one with higher pay and **SB** for the other. - If you work in seasonal agricultural work (e.g., during summer holidays), use **CAE**. - If you are a full-time student and your total annual income will be under NZD $14,000, you can use **ST** (which applies the 10.5% rate to all income). **Warning**: Using the wrong tax code can lead to underpayment of tax. If you underpay, you will need to repay the shortfall at the end of the tax year, plus potential interest and penalties. ### What is PAYE? PAYE (Pay As You Earn) is the system where your employer deducts income tax from your wages before you receive them. The amount deducted depends on your tax code and your gross earnings. Your employer pays this tax to Inland Revenue on your behalf. **Example**: If you earn NZD $500 per week from a part-time job using tax code M, your employer will deduct approximately NZD $52.50 in PAYE (10.5% on the first $269, 17.5% on the remainder). You receive NZD $447.50 net. ## Filing a Tax Return As an international student, you generally do not need to file a tax return if your only income is from wages and salary, and your employer has correctly deducted PAYE. However, there are several situations where you should file a return: ### When to file a tax return - **You have overpaid tax**: If your annual income is below NZD $14,000 and your employer used the wrong tax code (e.g., M instead of ST), you may have overpaid tax. Filing a personal tax summary (IR3) allows you to claim a refund. - **You have self-employment income**: If you earned more than NZD $200 from self-employment (e.g., tutoring, freelance writing), you must file an IR3 return. - **You have rental income**: If you own property in New Zealand and receive rent. - **You have overseas income**: If you are a tax resident and have overseas income. - **You want to claim tax credits**: Such as the Independent Earner Tax Credit (IETC) if you earn between NZD $24,000 and $48,000 and do not receive a benefit or student allowance. ### How to file a tax return 1. **Create a myIR account**: Go to ird.govt.nz and create a myIR account using your IRD number. 2. **Check your income summary**: After 31 March (the end of the tax year), your employer will send your income details to IRD. You can view your summary in myIR. 3. **File a personal tax summary (IR3)**: If you need to file, complete the IR3 form online in myIR. The process is straightforward and takes about 15–20 minutes. 4. **Claim a refund**: If you are owed a refund, IRD will deposit it directly into your New Zealand bank account. Refunds are typically processed within 2–4 weeks. ### Tax year in New Zealand The New Zealand tax year runs from 1 April to 31 March. For example, the 2026 tax year runs from 1 April 2025 to 31 March 2026. You must file any outstanding returns by 7 July following the end of the tax year (unless you use a tax agent, who can extend this to 31 March of the following year). ## Common Tax Issues for International Students ### Overpayment of tax Many international students overpay tax because: - Their employer uses the wrong tax code (e.g., 'M' instead of 'ST'). - They work irregular hours and the PAYE system over-deducts. - They change jobs mid-year and the new employer uses a different tax code. **Solution**: File a personal tax summary at the end of the tax year. In 2025, the average tax refund for international students was approximately NZD $450, according to IRD data. ### Underpayment of tax Underpayment occurs when: - You use the wrong tax code (e.g., 'ST' when your income exceeds NZD $14,000). - You have multiple part-time jobs and do not use the correct secondary tax code. - You receive a scholarship that is taxable but do not declare it. **Solution**: If you underpay, IRD will send you a notice of assessment. You must pay the shortfall within 30 days. Interest and penalties may apply if you do not pay on time. ### Student loan repayments If you have a New Zealand student loan (for domestic students), you must start repaying it once your income exceeds the repayment threshold (NZD $22,828 per year in 2026). International students are generally not eligible for New Zealand student loans, but if you have a loan from your home country, you may need to make arrangements with your home country's tax authority. ### Working holiday tax If you are on a Working Holiday Visa (not a student visa), your tax obligations are different. You must use the 'WHV' tax code, which applies a flat 15% tax rate on all income. International students on a student visa cannot use this code. ## FAQ ### Q1: Do I need an IRD number if I don't plan to work in New Zealand? Yes, you may still need an IRD number. If you open a New Zealand bank account that earns interest, the bank will deduct Resident Withholding Tax (RWT) at a rate of up to 33% if you do not provide an IRD number. With an IRD number, you can choose a lower RWT rate (e.g., 10.5% if your total income is under NZD $14,000). Additionally, if you receive a scholarship or grant, the payer may require an IRD number. ### Q2: Can I apply for an IRD number before I arrive in New Zealand? Yes, you can. You can apply online through the IRD website using your passport and visa details. The IRD number will be issued within 2–3 business days and sent to your email. You can then provide it to your employer and bank upon arrival. This is a good idea if you already have a job offer or plan to start work soon after arriving. ### Q3: What happens if I don't have an IRD number when I start a job? Your employer must deduct tax from your wages at the 'no-notification' rate of 45% until you provide your IRD number. Once you provide it, your employer can adjust the tax deduction for future pay periods. However, you cannot reclaim the overpaid tax through your employer — you must file a personal tax summary at the end of the tax year to get a refund. ### Q4: Are scholarships and student allowances taxable? Government-funded scholarships (e.g., New Zealand Scholarships, university-specific government scholarships) and student allowances from StudyLink are generally tax-free for full-time students. However, scholarships from private organisations, overseas governments, or employers may be taxable. Check the terms of your scholarship agreement. If in doubt, contact IRD or a tax professional. ### Q5: How do I claim a tax refund as an international student? To claim a tax refund, you need to file a personal tax summary (IR3) through your myIR account after the end of the tax year (31 March). Log in to myIR, check your income summary, and if you believe you have overpaid, file the IR3 form. IRD will process your refund within 2–4 weeks and deposit it into your New Zealand bank account. You can also use a tax agent, but their fees may reduce your refund. ### Q6: What is the difference between a tax code and an IRD number? An IRD number is your unique tax identification number, like a Social Security number in the US or a National Insurance number in the UK. A tax code tells your employer which tax rate to apply to your wages. You need an IRD number first, then you choose a tax code based on your employment situation. Your IRD number stays the same for life, but your tax code can change if you change jobs or your income level changes. ## Sources 1. Inland Revenue New Zealand — IRD number application, tax codes, and tax rates (ird.govt.nz) 2. Immigration New Zealand — Student visa work rights and conditions (immigration.govt.nz) 3. Employment New Zealand — Minimum wage rates and employment rights (employment.govt.nz) 4. StudyLink — Student allowance and loan information (studylink.govt.nz) 5. Inland Revenue — Personal tax summary and refund process (ird.govt.nz) 6. New Zealand Government — Tax residency rules and international students (ird.govt.nz) 7. University of Auckland — International student tax information (auckland.ac.nz) 8. Victoria University of Wellington — Tax guide for international students (wgtn.ac.nz)