Tax Credit
Independent Earner Tax Credit (IETC)
The Independent Earner Tax Credit (IETC) is a small but often-missed annual tax credit from IRD for working New Zealanders without children receiving Working for Families. 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
- You're not receiving Working for Families, a main benefit, NZ Super, Veteran's Pension, or overseas equivalents
- You're a NZ tax resident for the full tax year
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 2025. Personal amounts depend on your situation.
How to apply
- IETC is automatically calculated when you file your tax return
- Ensure you file an IR3 or have your employer file correctly
- 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?
Not usually. If you're salary/wage only, change your tax code with your employer (e.g. M SL + IETC) and the credit is spread across pay. If you file an IR3, IRD calculates it automatically from your income figures.
Can I backdate IETC for previous years?
Yes. IRD can reassess up to four prior tax years. File or amend your IR3 for the relevant years via myIR — if you were eligible, the credit will apply automatically.
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
Get up to $260.72 from IRD each KiwiSaver year by contributing at least $1042.86. See 2026 match rate, eligibility, and the July 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.
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