IETC: Up to $520.00/year
Full credit: $24,000.00 - $44,000.00
Phase out: $44,000.00 - $48,000.00 at 13c per $1
Your IETC
$520.00
Full credit
Extra Take-Home
$520.00
per year
What is the IETC?
The Independent Earner Tax Credit (IETC) is a tax credit of up to $520.00per year for individuals earning between $24,000.00 and $48,000.00 who do not receive a government benefit, NZ Super, or Working for Families tax credits.
How is it applied?
The IETC is automatically applied through the PAYE system using a "ME" or "ME SL" tax code. If you use the correct tax code, the credit is spread across your pay periods. If not claimed through PAYE, you may receive it as a tax refund at the end of the year.
IRD-Aligned: IETC rates for 2025-26 tax year. You cannot receive the IETC if you also receive Working for Families or other government income support.
Disclaimer: This calculator provides estimates based on current HMRC rates and thresholds for the 2025/26 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified accountant or tax adviser before making financial decisions. Read our terms
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