Tax responsibilities for people receiving taxable income
From 1 October 2008 personal income tax rates will change. For more information see the News and Updates article. We'll update this page when the changes take effect.
You may receive taxable income through employment, a business, rent, a benefit or superannuation, or other income that is taxed at source (before you receive it). Here we outline what to do:
- to ensure you pay the correct amount of tax on your taxable income
- when you receive income from rent or a business in particular
- when you have a student loan.
How to pay the correct amount of tax (not too much, not too little)
When you receive income from your job or other taxable income:
- Give your IRD number to your boss or other payer so that you are paying the correct amount of tax. If you don't have an IRD number, fill in an IRD number application - individual (IR595) form.
- Fill in a Tax code declaration (IR330) form. Without a tax code declaration, tax is deducted at the non-declaration rate of 45 cents in the dollar.
The tax deducted from your income may range from 15 to 39 cents in the dollar. To work out how much tax will be deducted from your employment earnings, use the PAYE calculator. Note that this calculator does not take account of any other income you may receive, eg from interest
If you are in employment for part of the year only, you could be entitled to a tax refund. You can check whether you are entitled to a refund by using the Personal tax summary calculator.
Receiving income from rent or business?
When you receive rental or business income, you must:
- keep records
- send your Individual tax return (IR3) to us after each financial year.
See our business section for more detail on what tax you must pay and what expenses/deductions you may claim when you are running a business.
Do you have a student loan?
You must start repaying your student loan when you earn over the student loan threshold. Automatic deductions, which are set at the minimum amount of 10 cents in every dollar, are made from your salary or wages towards your loan repayment. You begin this process by indicating the student loan code that applies to you in your Tax code declaration (IR330).
You may also make voluntary repayments to pay off your loan faster.
Find out more
- Income tax basics: tax rates and tax codes
- Personal tax summaries, tax returns and rebates
- Work out if you need to do anything at the end of the tax year (31 March)
- Learn more about student loans
- Learn more about child support
- Learn more about Working for Families Tax Credits
Date published: 06 Jun 2008
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