NZ Terminal Tax Calculator
Reconcile your residual income tax (RIT) against PAYE/RWT credits and provisional instalments to see your final terminal tax top-up or refund, plus any UOMI and late-payment penalties if you're past the due date.
Due 2027-02-07.
IRD publishes current UOMI rates; default 10.91%.
- You overpaid by $-0. IRD will refund the excess (or offset against next year's provisional).
Not sure if you need to file? Use our IR3 Filing Checker to find out.
Key rules at a glance
- Due date: 7 February following the tax year, or 7 April if filing through a tax agent with extension of time.
- Safe harbour: RIT under $60,000 and standard-uplift instalments paid on time — no UOMI on the shortfall.
- Late payment penalties: 1% immediate + 4% if still unpaid seven days past the due date.
- UOMI: IRD's published late-payment rate (recently ~10.91% p.a.); credit rate when IRD owes you is lower.
- Provisional tax trigger: If your RIT exceeds $5,000, you become a provisional taxpayer next year.
Frequently asked questions
What is terminal tax in New Zealand?
Terminal tax is the final income-tax top-up or refund after IRD reconciles your residual income tax (RIT) for the year against all credits — PAYE, RWT, imputation, and any provisional tax instalments already paid. Due 7 February in the year after year-end, or 7 April if you file through a tax agent with an extension of time.
What is residual income tax (RIT)?
RIT is the income tax you owe for the year before provisional tax is counted, minus PAYE, RWT, and imputation credits. It is the figure IRD uses to decide whether you must pay provisional tax next year (threshold $5,000) and whether UOMI applies ($60,000 safe-harbour threshold).
How does the $60,000 safe harbour work?
If your RIT for the year is under $60,000 AND you paid the standard-uplift amount (prior-year RIT × 105%) at each provisional instalment date on time, you are in safe harbour: no use-of-money interest on any terminal-tax shortfall, even though you still need to pay the balance by 7 Feb/7 Apr. Miss either condition and UOMI runs from the instalment dates.
What is IRD's UOMI rate?
IRD publishes the use-of-money interest rate periodically (roughly floating Treasury bill rate plus a margin). As of mid-2025 the late-payment rate has been around 10.91% p.a., credit rate lower. Rates change — always check the current figure on ird.govt.nz before paying. This calculator defaults to the last published rate but lets you override it.
What penalties apply if I'm late paying terminal tax?
An initial 1% late-payment penalty applies the day after the due date, plus a further 4% if the amount remains unpaid seven days later. Incremental 1%-per-month penalties can then accrue on the outstanding balance. UOMI runs separately from the relevant instalment or terminal date (depending on safe harbour) until the tax is paid in full.