Collection: Rental Income Tax Calculator NZ — Tax on Your Rental Profit
Estimate the income tax on your NZ rental property profit for the 2025–26 tax year. Enter your other income, rent and deductible expenses; the calculator applies the current PAYE bands and the interest-deductibility rules to show the tax the rental adds.
Salary, wages, business income — before tax.
Interest only — not principal repayments.
Interest deductibility was phased back in and is fully restored from 1 April 2025.
Rental profit / (loss)—
Tax on rental profit—
Marginal rate applied—
Rental cash after tax—
General information only — not financial, tax or legal advice. Figures are estimates from the inputs you enter. Confirm with your adviser, accountant, lender or insurer.
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Prices exclude GST. Illustrative tools only — not legal, tax or financial advice.
How rental income is taxed in NZ
Rental profit (rent minus deductible expenses) is added to your other income and taxed at your marginal rate — there's no separate landlord tax rate. You declare it on your IR3 return with the IR3R rental income schedule. Deductible costs include mortgage interest (100% from 1 April 2025), rates, insurance, property management, repairs and maintenance (not improvements), accounting fees, letting fees, body corporate levies, and depreciation on chattels. The building itself isn't depreciable.
Ring-fencing and provisional tax
If expenses exceed rent, the loss is ring-fenced — it can't reduce tax on your salary, but carries forward to offset future residential rental income. If the rental pushes your residual income tax above $5,000, you'll be pulled into provisional tax the following year. Keep a monthly record of every expense category so the year-end conversation with your accountant is short.
Assumptions and sources
Tax bands
2025–26 personal income tax thresholds: $15,600 / $53,500 / $78,100 / $180,000 — ird.govt.nz
Interest
Deductible share per the year selected (100% from 1 April 2025).
Losses
Shown as ring-fenced (no refund against other income) — residential rental loss ring-fencing rules, ird.govt.nz
Last reviewed 6 September 2026. Rates and thresholds change — check the linked sources before relying on a figure.
Frequently asked questions
How much tax do you pay on rental income in NZ?
Rental profit is taxed at your personal marginal rate: 10.5% up to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000 and 39% above that (2025–26 bands). The rental profit sits on top of your other income, so most working landlords pay 30–39% on it.
Can I claim mortgage interest on a rental property in NZ?
Yes. From 1 April 2025 residential rental mortgage interest is 100% deductible again. It was 80% deductible in the 2024–25 year and 50% in 2023–24 after the earlier phase-out.
What expenses can I claim on a rental property in NZ?
Rates, insurance, mortgage interest, property management fees, repairs and maintenance, accounting and legal fees for the tenancy, letting and advertising fees, body corporate levies, Healthy Homes compliance costs that are repairs (not capital improvements), travel to inspect, and depreciation on chattels. Capital improvements and the purchase costs are not deductible.
Is this a tax return?
No — it's an estimate for planning. Your accountant or the IRD IR3/IR3R forms determine the actual figure. Depreciation, mixed-use rules, and the bright-line test for sales are not included here.
