Tax Credit
Independent Earner Tax Credit (IETC)
The Independent Earner Tax Credit (IETC) uses your own taxable income, not combined household income. Having children does not itself exclude you; receiving Working for Families yourself or through your partner does. You get $10/week (up to $520/year) if your taxable income sits between $24,000 and $66,000, abating to zero by $70,000.
What is this?
Independent Earner Tax Credit (IETC) is administered by IRD. Income Tax Act 2007, s.ME 1
Am I eligible?
- Your annual taxable income is between $24,000 and $70,000
- Neither you nor your partner receive Working for Families; you do not receive an income-tested benefit, NZ Super, Veteran's Pension or overseas equivalents for the qualifying months
- You meet NZ tax-residency requirements; IRD determines the qualifying whole months
How much could I get?
Full credit: $520/year ($10/week) when income is $24,000–$66,000.
Abates at 13¢ per dollar of income above $66,000, reaching zero at $70,000.
Can be paid weekly through a special tax code, or as a lump sum at year end.
Rates current as of Budget 2026. Personal amounts depend on your situation.
How to apply
- IETC is automatically calculated when you file your tax return
- Check your income tax assessment in myIR; file an IR3 only if IRD requires one
- Credit is applied at end of tax year or through adjusted PAYE
- Contact IRD if you believe you're eligible but haven't received it
Documents you'll need
- · IR3 individual tax return (if not salary/wage earner)
- · Employment income summary (auto-populated in myIR)
Frequently asked questions
Can I get IETC and Working for Families at the same time?
No — IETC is explicitly for earners who aren't getting WFF. If you receive any WFF credit (Family Tax Credit, In-Work Tax Credit, Best Start, or Minimum Family Tax Credit) for even part of the year, IETC for that period is not payable.
How do I claim IETC — do I need to apply?
For eligible salary/wage earners, IRD explains when to use ME or ME SL (with a student loan) on the IR330 for your main job. Otherwise, eligible amounts can be settled through your year-end income tax assessment. Check the official tax-code guidance before changing codes.
Can I backdate IETC for previous years?
Check the relevant year's income tax assessment in myIR and ask IRD whether it can be corrected. Earlier years may have different income thresholds; whether an IR3 or another correction is needed depends on your circumstances.
Related benefits you might also qualify for
Working for Families Tax Credit
Working for Families pays weekly tax credits to families with children. See 2026 rates, income thresholds, abatement rules and how to register with IRD.
KiwiSaver Government Contribution
Formerly the member tax credit: get up to $260.72 from IRD by contributing at least $1042.86. See the 2026 minimum contribution, eligibility and deadline.
KiwiSaver PIR Rate
Your Prescribed Investor Rate (PIR) decides how much tax KiwiSaver pays on returns. See 2026 brackets (10.5/17.5/28%) and how to fix a wrong rate.
Want a personalised estimate across all 15 benefits?
Check my entitlementsFree · 90 seconds · no signup