If you are on a working holiday visa (WHV) in New Zealand, you pay income tax just like any NZ employee — and you may be owed a refund when you leave. This guide explains which tax code to use, how tax is calculated, and how to claim your refund through myIR.
Working holiday visa holders are taxed as NZ tax residents if they have been in NZ for 183+ days — but NZ-sourced wages are taxed under the same standard PAYE tax codes and brackets either way. Use tax code M (or ME if you are a New Zealand tax resident who qualifies for the independent earner tax credit). When you leave, file an IR3 or request a tax assessment through myIR to claim any refund. Common reasons for refunds: changing jobs (secondary tax applied), part-year income (less than the annual estimate), or unused IETC. Register on myIR as soon as you arrive to manage your tax easily.
Are You a NZ Tax Resident?
Your tax obligations depend on whether you are a NZ tax resident:
NZ tax resident (taxed on worldwide income at resident rates):
- You have been in NZ for 183+ days in any 12-month period
- This applies to most WHV holders who stay more than 6 months
Non-resident (taxed only on NZ-sourced income):
- You are in NZ for fewer than 183 days
- Your NZ-sourced wages are still taxed through standard PAYE tax codes and the normal income tax brackets — there is no special flat rate on wages for non-residents. (A flat 15% withholding rate does apply to non-resident contractors receiving schedular payments, but that’s a different arrangement to being paid wages as an employee.)
Whether or not you’ve crossed the 183-day residency threshold, normal NZ income tax rates apply to your NZ wages (10.5%–39% depending on income). Residency mainly affects whether you’re also taxed on income earned outside NZ.
Which Tax Code to Use
When you start work in NZ, your employer will ask for your tax code. If you are a NZ tax resident WHV holder:
| Situation | Tax code |
|---|---|
| This is your only job | M |
| You’re a NZ tax resident earning $24,000–$70,000, with no Working for Families or income-tested benefit | ME (see IETC) |
| Second or additional job | S |
| You have a student loan (unlikely for WHV) | Add SL suffix (e.g., M SL) |
Use M if in doubt. ME gives you the Independent Earner Tax Credit ($520/year, full credit up to $66,000 then abating to zero at $70,000) but only if you earn in the eligible range with no other income.
If you do not have a NZ IRD number yet, your employer must withhold tax at the no-declaration rate (45%, plus the ACC earners’ levy) — get your IRD number through IRD’s online application as soon as possible.
Getting a NZ IRD Number
Required to work legally in NZ. Apply online at ird.govt.nz:
- Create or log in to myIR
- Select Apply for IRD number
- Provide your passport, visa, and residential address in NZ
- IRD aims to process an IRD number application within 10 working days (12 for paper applications), though it may take longer
Without an IRD number, your employer deducts 45% tax (plus the ACC earners’ levy) — far more than you should pay.
NZ Tax Rates on Your Wages
Whether you’re NZ tax resident or not, your NZ-sourced wages are taxed at the same rates as any NZ worker:
| Annual income | Tax rate |
|---|---|
| $0–$15,600 | 10.5% |
| $15,601–$53,500 | 17.5% |
| $53,501–$78,100 | 30.0% |
| $78,101–$180,000 | 33.0% |
| $180,001+ | 39.0% |
Plus the ACC earner levy (1.75% for 2026–27; it was 1.67% for 2025–26) deducted from wages.
Why Working Holiday Visitors Often Get a Refund
Common reasons WHV holders are owed tax back:
-
Part-year income: You worked for part of the year — PAYE is calculated as if you would earn at the same rate all year. If you earned $24,000 in 6 months, PAYE assumes $48,000 annual income and overtaxes you.
-
Multiple jobs with secondary tax: If you had two jobs, the second was taxed at a flat secondary tax rate (S at 17.5%, SH at 30%, ST at 33%, or SA at 39%, depending on your combined income) — if your actual combined income ended up lower than estimated, this may have been too high.
-
Unused IETC: If you were a New Zealand tax resident, earned $24,000–$70,000, used tax code M instead of ME and met the other IETC conditions, you may be owed the $520 IETC (full credit up to $66,000, abating to zero at $70,000).
-
No-declaration rate (45%, plus the ACC earners’ levy): If your employer withheld at that rate before you got an IRD number — you almost certainly overpaid.
How to Claim Your Refund When You Leave
Option 1: Automatic assessment through myIR
- Log in to myIR
- Check Income tax → Returns and transactions → Returns
- If IRD has issued an assessment showing a refund, there is nothing to confirm: tell IRD only if a detail is wrong
- Ensure a NZ bank account is registered to receive the refund
- If you have already closed your NZ bank account, you will need to contact IRD to arrange a refund another way (international bank transfer or NZ cheque)
Option 2: File an IR3 If no automatic assessment has been issued, file an IR3 to claim your refund. Include all employment income and taxes paid.
Option 3: Before you leave You can file early (before your departure) if the tax year has ended (31 March). If you are leaving before 31 March, you can file after year-end from overseas.
KiwiSaver on Working Holiday
Working holiday visa holders can’t join KiwiSaver: Inland Revenue says “You cannot join KiwiSaver if you have a temporary, visitor, work or student visa.”
If your employer enrolled you by mistake, tell your employer and Inland Revenue. “You should not have been automatically enrolled” is one of the reasons Inland Revenue lists for accepting a late opt-out, after the usual day 14 to day 56 window and up to 3 months after it gets your first contribution. See KiwiSaver on a work visa.
Frequently Asked Questions
I was only in NZ for 3 months. Am I a NZ tax resident?
No — under 183 days means non-resident. That doesn’t change the tax rate on your wages, though: your employer should still have used a standard PAYE tax code (M or S) and the normal income tax brackets, the same as a resident employee — there is no special flat rate for non-resident wage-earners. (The 15% flat rate only applies to non-resident contractors receiving schedular payments.) If your income was overestimated for the year or you were on the wrong tax code, you may still be owed a refund — check via myIR or contact IRD.
I am leaving next week and the tax year hasn’t ended yet. Can I still file?
Yes — you can file for the income year so far. IRD allows WHV holders and short-term workers to file early when leaving NZ. File an IR3 with your income up to your departure date.
What if I come back to NZ in the future? Can I join KiwiSaver then?
Only if you’re then eligible: you need to be a New Zealand citizen or entitled to live in New Zealand indefinitely, and live or normally live here. Coming back on another temporary visa doesn’t make you eligible.