Independent Earner Tax Credit (IETC) Calculator
Check if you qualify for the IETC — up to $520/year ($10/week) for income between $24,000 and $70,000.
Eligible range: $24,000.00 – $70,000.00
About the IETC
The Independent Earner Tax Credit (IETC) is a tax credit for New Zealand workers earning between $24,000 and $70,000 per year who do not receive Working for Families tax credits or a main government benefit.
The full credit is $520 per year ($10 per week) for incomes between $24,000 and $66,000. Above $66,000, it reduces by 13 cents for each dollar over $66,000, reaching zero at $70,000.
For PAYE employees using the M tax code, the credit is applied automatically. Self-employed individuals claim it through their IR3 tax return.
Frequently asked questions
Who is eligible for the IETC?
You must earn between $24,000 and $70,000 per year, be a NZ tax resident, and not receive Working for Families tax credits or a main government benefit (such as Jobseeker Support or Sole Parent Support).
How do I claim the IETC?
If you're an employee using the M tax code, the credit is applied automatically through PAYE. Self-employed individuals claim it via their IR3 tax return. If your tax code is wrong, you may need to file a return to receive the credit.
Can I get both IETC and Working for Families?
No. The IETC and Working for Families are mutually exclusive. If you qualify for both, Working for Families is usually more generous for families with children.
What happens if my income changes during the year?
If your income rises above $70,000 during the year, you may need to repay some or all of the IETC. If it drops below $24,000, you won't receive the credit for that period.
Related Calculators
Sources
Rates sourced from IRD — IETC.
Last updated March 2026. Rates sourced from IRD.