When Inland Revenue calculates your income tax assessment, you may end up with tax to pay. In some situations, IRD will automatically write off the amount owing, provided certain conditions are met.
Generally, if your tax to pay is $50 or less, IRD will write it off automatically. This only applies where your income has been confirmed and you are not an IR3 income tax return filer.
Larger amounts may also be written off in certain circumstances. For example, if your income is from an income-tested benefit, education grant, New Zealand Superannuation or a veteran’s pension, you may qualify if some other required conditions are met.
There are also special rules where a tax bill arises because of an extra pay period during the year – for example, receiving 27 fortnightly payments instead of 26, or 53 weekly payments instead of 52. This happens roughly once every 11 years and 2026 was such a year. The amount that can be written off depends on your income and how frequently you are paid. Click here for more information on the write-off amounts for the 2026 tax year.
If you qualify for a write-off, IRD will usually apply it when your income tax assessment is issued. If IRD needs more information from you first, the write-off will be applied once your income details have been confirmed.
Not sure whether an automatic tax write-off applies to you? Get in touch with our team on 07 885 1022 and we can help you out.