You cannot be paid properly in New Zealand without an IRD number, and the penalty for working without one is steep. This guide covers what an IRD number is, how to get it (it's fast and free), the tax rate you'll actually pay on a working holiday, the ACC levy that comes out of every payslip, and how tax codes work.
Apply for your IRD number online as soon as you have your visa and have arrived. It's free and usually lands within two working days. Give it to your employer on your first day and use tax code "M". With an IRD number you pay tax on a sliding scale starting at 10.5%. Without one, your employer must tax you at a flat 45%. A small ACC earners' levy (1.75%) also comes out of your pay automatically.
An IRD number is your personal tax number in New Zealand, issued by Inland Revenue (the IRD). Every worker has one. It links your earnings, your tax, and your KiwiSaver if you join one.
You can technically be paid without an IRD number, but you'll be hammered for it. If you don't give your employer a completed tax code declaration with your IRD number, they must deduct tax at the no-notification rate of 45% from your first dollar (IRD). On normal working-holiday wages that's roughly triple what you should pay. So sorting your IRD number is the single most valuable hour of admin you'll do.
You apply through Inland Revenue as a "new arrival to New Zealand". The clever part: because you've come through Immigration New Zealand, the IRD can verify your identity directly against your visa record, so you don't have to post documents or visit an office.
What you need:
You apply online. Once approved, the IRD sends your number by text or email in about two working days, or by post within ten working days (IRD).
Three things to know:
It's completely free. Inland Revenue never charges for an IRD number. Third-party websites that offer to "get your IRD number" for a fee are doing nothing you can't do yourself, and handing your passport details to a middleman is a risk. Only ever apply at ird.govt.nz.
You don't need a job or a bank account first. Some older guides say you need a New Zealand bank account before you can get an IRD number. For new arrivals applying through the IRD's new-arrival process, that isn't required. Apply as soon as you land.
Use the new-arrival process before your visa's travel-by date. This route is for recent arrivals. Apply early and it's the simplest path.
When you start a job you complete an IR330 Tax code declaration (usually inside your employer's payroll system). Your tax code tells payroll how much to deduct.
New Zealand taxes income on a progressive scale. Everyone pays the same rates; there's no separate "backpacker tax" like Australia's. For the year 1 April 2025 to 31 March 2026:
| Taxable income | Tax rate |
|---|---|
| $0 to $15,600 | 10.5% |
| $15,601 to $53,500 | 17.5% |
| $53,501 to $78,100 | 30% |
| $78,101 to $180,000 | 33% |
| $180,001 and over | 39% |
Source: Inland Revenue, tax rates for individuals.
These are marginal rates, so you only pay the higher rate on the slice of income above each threshold. Most working holidaymakers earn somewhere in the 17.5% band over a year. There is no tax-free threshold in New Zealand: you pay 10.5% from your first dollar, but that's far below Australia's flat 15% for working holidaymakers, so on modest earnings New Zealand is comparatively gentle.
Separate from income tax, a small ACC earners' levy comes out of your wages automatically through PAYE. It funds New Zealand's accident compensation scheme (more on that in our healthcare guide). For 2025-26 it's $1.75 per $100 of earnings, about 1.75%, on income up to a cap (IRD). You don't apply for it or claim it back; it's deducted like tax. It's the reason your take-home is slightly lower than the income-tax table alone suggests, and it's also why everyone in New Zealand, including you, is covered for accidental injury.
New Zealand runs on PAYE: your employer deducts income tax and the ACC levy from each pay and sends it to Inland Revenue. The tax year runs 1 April to 31 March.
After the tax year ends, Inland Revenue automatically works out whether you paid the right amount. If you overpaid, they pay the refund into your nominated bank account, usually without you lodging anything. If you underpaid, they'll tell you. You can see it all and add your bank account in myIR, the IRD's online account.
You're most likely to be owed a refund if you started the year without an IRD number and got taxed at 45%, or if you only worked part of the year (common on a 12-month visa), because the system may have taxed you as if you'd earn at that rate all year. Check myIR before you leave, and make sure your bank account and contact details are current so any refund can reach you.
If you leave part-way through a tax year, you can ask Inland Revenue to confirm your final position so any refund is processed. Keep your myIR login, your bank account, and a forwarding email. Unlike Australia, New Zealand has no compulsory super for working holidaymakers to claim back; KiwiSaver is optional and most working holidaymakers don't join, so there's usually nothing to withdraw on departure.
When a refund or your final pay lands, you'll likely want to move it into your home currency. Banks usually build a margin into the exchange rate on top of any transfer fee, which is where the real cost sits. Specialist services such as Wise and OFX often deliver more of your money. Compare the amount that actually arrives, not the headline fee.
You can start, but until your employer has your IRD number and tax code declaration they must deduct tax at 45%. Since the number usually arrives within two working days, apply the moment you land so it's sorted before your first payday.
No. Working holidaymakers pay the same progressive rates as everyone else, starting at 10.5%. There's no separate backpacker rate and no tax-free threshold.
On typical working-holiday earnings you'll mostly sit in the 10.5% and 17.5% bands, plus the 1.75% ACC levy. As a rough guide, expect to keep the large majority of your pay, with more deducted as your annual total rises.
Often, yes, especially if you worked only part of the tax year or were taxed at 45% before your IRD number came through. Inland Revenue assesses it automatically after 31 March, so keep your myIR, bank account and email active.
Yes, it's automatic through PAYE for everyone who earns in New Zealand. In return, ACC covers you for accidental injury regardless of your visa.
Yes. Inland Revenue never charges. Ignore any site that wants a fee to get one for you.
Sources: ird.govt.nz. Last verified 2026-06-11.