NZ Resident Withholding Tax Calculator

Work out the correct Resident Withholding Tax (RWT) rate for your bank interest and dividends. Choosing the right rate prevents end-of-year tax bills or refunds. Based on Inland Revenue 2026 rates.

Salary + interest + dividends + other taxable
From all NZ banks combined
From NZ shares (separate ICR/DWT)
Tax already paid by NZ company

RWT Breakdown

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What Is Resident Withholding Tax (RWT)?

Resident Withholding Tax is tax that NZ banks and companies deduct from interest and dividend payments before paying you. The bank sends the RWT directly to Inland Revenue (IRD). RWT is not a separate tax — it's a prepayment of your income tax. If your RWT rate matches your marginal income tax rate exactly, you owe nothing extra at year-end. If your RWT rate is too low, you'll owe IRD the difference. Too high, you'll get a refund. The right RWT rate depends on your total annual taxable income (source: ird.govt.nz, RWT for individuals).

2026 RWT Rates for Interest

For NZ tax-resident individuals, the RWT rates on interest are: 10.5% if total income up to NZ$15,600, 17.5% if income NZ$15,601 to NZ$53,500, 30% if income NZ$53,501 to NZ$78,100, 33% if income NZ$78,101 to NZ$180,000, and 39% if income above NZ$180,000. Trusts default to 33%, companies to 28%. If you fail to give your bank your IRD number, the bank deducts the no-notification rate of 45% — far higher than any individual marginal rate. You can change your RWT rate at any time by contacting your bank or via myIR (source: ird.govt.nz, IR3 income tax return).

RWT on Dividends and Imputation Credits

NZ companies typically pay 28% income tax. When they distribute profits as dividends, they attach "imputation credits" representing the tax already paid. If you own NZ shares, your dividend statement shows: gross dividend, imputation credits, and RWT (top-up to your marginal rate). Example: a $700 cash dividend with $272 imputation credits and 33% RWT means $972 gross income, $272 already paid by the company, $321 your total tax (33% × $972), $49 RWT deducted = $651 cash to you. Always check the dividend statement to verify imputation credits — incorrectly claimed credits trigger IRD penalties.

How to Choose the Correct RWT Rate

The general rule: pick the RWT rate matching your marginal tax bracket. If you're in the 33% bracket, choose 33% RWT. Picking a lower rate means a tax bill at year-end; picking higher means you've over-paid and need to file IR3 to claim a refund. Most NZ banks default new accounts to 33% if you don't specify — appropriate for many earners but wrong for low-income or very high-income holders. Check your rate in your online banking under "Tax details" or call your bank. PIE (Portfolio Investment Entity) interest is taxed differently at PIR rates (10.5%, 17.5%, 28%) and capped at 28% maximum. Last updated: April 2026.