Taxation is a system that takes set amounts of money from everyone's earnings (income) to help governments set up services for everyone to use, such as roads, hospitals, courts, police and politicians. Paying income tax is required by New Zealand law and you can get in big trouble for not paying it – you may be fined, or even go to jail.
The Inland Revenue Department (IRD) / Te Tari Taake collects this money from everyone in AoNZ who earns money either directly or through employers. If you receive any income from any source must declare your earnings (tell IRD about them) and you must make sure the right amount of tax is sent to IRD.
IRD numbers for individuals
Your IRD number is used to keep track of the tax you pay and the entitlements you receive. How you apply for one depends on whether you live in New Zealand or overseas, or if you have recently arrived here. There is no cost when you apply for an IRD number. Your IRD number identifies you for all the tax-related events in your life - whether a job, a benefit or savings. Your IRD number is unique to you, and you keep the same IRD number throughout your life.
Getting an IRD number
You will need some identification documents to get your IRD number (more info about identification here). You can use your RealMe® login to set up a MyIR account, which allows you to access your income tax history at any time. Keep a note of your password for this account.
Click here to apply for an IRD number.
Using an IRD number
You need an IRD number for any tax-related obligations you have or entitlements you get. Common examples of when you need an IRD number include:
- earning income, for example from a job, benefit or investment
- opening a bank account
- joining KiwiSaver
- applying for a student loan.
Keep it safe!
Keep your IRD number where you can easily find it. You'll need it for all tax-related events in your life. But it's ok if you lose your IRD number – you can click here to find it.
What happens at the end of the tax year?
The tax year is from 1 April to 31 March. After the end of the tax year, IRD staff work out if:
- you’ve paid the right amount of tax
- you have tax to pay
- you're due for a refund.
If you are in a job where you Pay As You Earn (PAYE) the IRD will have enough information to work out your tax for you and you won't need to do anything.
If you are working part-time or are on a contract, you may need to file an individual income tax return – you can do this online (with some help), using your MyIR login or using a paper form.