How to Get a Tax Refund in NZ: Everything You Need to Know

Every year, hundreds of thousands of New Zealanders receive a tax refund from IRD. Some get it automatically. Others are owed money but never claim it because they do not know they are entitled to it.

This guide explains exactly how the NZ tax refund process works, who qualifies, how to claim, and what you can do to maximise the amount you get back.

A tax refund happens when you have paid more tax during the year than you actually owed. This can happen for several reasons:

• You changed jobs and your new employer used the wrong tax code, or you had a gap between jobs where you earned less than expected
• You worked part of the year — if you only worked for six months, your employer may have withheld tax as if you would earn that rate for the full year
• You had multiple income sources taxed at different rates
• Your income was lower than expected — provisional tax payers who overestimated their income
• You made charitable donations and have not claimed the tax credit
• You had work-related expenses that reduced your taxable income
• Your tax code was wrong — for example, using the "M" code when you should have used "ME" (which includes the independent earner tax credit)

Since 2019, IRD automatically calculates whether most salary and wage earners have paid the right amount of tax each year. This is called the automatic income tax assessment.

Here is how it works:

1. The tax year ends on 31 March
2. Between May and July, IRD uses information from your employer, bank, and KiwiSaver provider to calculate your tax position
3. IRD sends you a notice in myIR (and by email if you have registered) showing whether you are owed a refund or owe a bill
4. If you are owed a refund, IRD pays it directly into your bank account — usually within a few days of you accepting the assessment
5. If you owe tax, you have until 7 February the following year to pay without penalty

You do not need to do anything to trigger this process. It happens automatically for most employees. But you do need to log in to myIR to accept the assessment and confirm your bank account details.

If you are self-employed, a contractor, or have income that is not taxed at source, you need to file an IR3 tax return. Any refund is calculated when IRD processes your return.

The standard filing deadline is 7 July. If you have a registered tax agent, the deadline extends to 31 March the following year.

You are more likely to be owed a refund if:

• You changed jobs during the year, especially if there was a gap in employment
• You worked part-year (parental leave, illness, starting a new job mid-year)
• You had a lower income year than usual
• You are eligible for the independent earner tax credit (IETC) but your employer has not been applying it
• You made charitable donations and have not claimed the credit
• You had work-related expenses as a contractor that reduced your taxable income
• You are on a secondary tax code that withheld more than necessary

This is one of the most commonly missed credits in New Zealand.

The IETC is worth up to $520 per year and is available to individuals who:

• Earn between $24,000 and $48,000 from salary, wages, or self-employment
• Do not receive Working for Families tax credits
• Do not receive an income-tested benefit

If you earn between $24,000 and $44,000, you get the full $520. The credit phases out between $44,000 and $48,000.

To get this credit automatically, you need to use the "ME" tax code with your employer (not the standard "M" code). If you have been using "M" when you should have been using "ME", you are likely owed a refund for every year you missed it — up to four years back.

If you donated to an approved charity during the year, you are entitled to a tax credit of 33.33% of the amount donated.

For example:

• Donated $300 → tax credit of $100
• Donated $1,500 → tax credit of $500
• Donated $3,000 → tax credit of $1,000

This is a credit against your tax bill, not just a deduction — it directly reduces what you owe (or increases your refund).

To claim it, you need your donation receipts and either:

• File an IR526 donation tax credit claim through myIR, or
• Include the donations in your IR3 return if you are filing one

You can claim donations going back four years. If you have been donating to charity and never claimed the credit, it is worth going back and doing so now.

IRD allows you to amend tax returns and claim refunds going back four years from the end of the tax year in question.

So in the 2025–2026 tax year (ending 31 March 2026), you can claim refunds back to the 2021–2022 tax year (ending 31 March 2022).

This is particularly relevant if you:

• Have been using the wrong tax code for several years
• Have never claimed your charitable donation credits
• Were a contractor who did not file returns and overpaid withholding tax

Go to ird.govt.nz and log in to myIR. If you do not have a myIR account, you can create one using your IRD number and a form of ID.

Look for any automatic income tax assessments for recent tax years. IRD will show whether you are owed a refund or owe tax for each year.

Make sure IRD has your correct bank account on file. Refunds are paid by direct credit — if your details are wrong or missing, the refund will not reach you.

If you agree with IRD's assessment, accept it in myIR. Your refund will typically be paid within 3–5 working days.

If you think the assessment is incorrect — for example, if IRD is missing income from a second job, or has not accounted for expenses you are entitled to claim — you can request a reassessment through myIR or by contacting IRD.

Check that your employer is using the right tax code for your situation. The most common codes:

If you are unsure which code applies to you, IRD has a tax code calculator at ird.govt.nz.

Gather receipts from every charity you donated to during the year. Many charities will email you a receipt summary if you ask. The 33.33% credit adds up quickly.

If you are a contractor or self-employed and have legitimate business expenses, filing an IR3 and claiming those expenses reduces your taxable income — which either reduces your tax bill or increases your refund.

If you have not filed returns or claimed credits for previous years, go back up to four years. The cumulative refund can be significant.

Not everyone gets a refund. If IRD's assessment shows you owe tax, you have until 7 February the following year to pay without incurring a late payment penalty.

If you cannot pay in full, IRD offers instalment arrangements. It is always better to contact IRD proactively than to ignore a tax bill — penalties and interest compound quickly. Read our guide on IRD payment plans.

• No bank account on file — IRD cannot pay you if they do not have your account details. Update them in myIR.
• Assessment not accepted — you need to actively accept the assessment in myIR before IRD will process the refund.
• Identity verification required — new myIR users or people who have not logged in for a long time may need to verify their identity before a refund is released.
• Outstanding debt — if you owe IRD money from a previous year (or have a student loan in arrears), IRD may offset your refund against that debt before paying the balance.

For most employees with straightforward situations, no — you can manage the process yourself through myIR.

But an accountant adds value if:

• You have multiple income sources or a complex tax position
• You are a contractor or self-employed and need to file an IR3
• You think you may have missed deductions or credits in previous years
• You want someone to review your tax position and make sure you are not leaving money on the table

At Eastmure & Associates, we regularly identify refunds and missed credits for new clients who assumed their tax was being handled correctly. The cost of a tax review is almost always less than the refund we find.

If you think you may be owed more than IRD's automatic assessment shows — or if you have not filed returns for several years — book a free 30-minute consultation with Eastmure & Associates. We work with individuals, contractors, and business owners across Canterbury and New Zealand.