Free New Zealand calculator · 2026/27
RWT Calculator NZ: Resident Withholding Tax on Interest & Dividends
Work out the RWT taken from your interest or NZ dividends, convert between gross and net interest, and check whether your RWT rate matches your income for 2026/27.
Rules and rates checked against official sources on 2 November 2026 · NZD · Estimates only
How is RWT calculated in NZ?
Interest: your bank deducts resident withholding tax at the rate you choose — 10.5%, 17.5%, 30%, 33% or 39% — or 45% if it does not have your IRD number. Choose the rate that matches your total taxable income including the interest: up to $15,600 → 10.5%, $15,601–$53,500 → 17.5%, $53,501–$78,100 → 30%, $78,101–$180,000 → 33%, over $180,000 → 39%.
Dividends: RWT is 33% of the gross dividend (cash + imputation credits) minus the imputation credits. A fully imputed dividend already carries 28% company tax, so only about 5% of the gross dividend is deducted.
Your details
Your estimate
RWT rates on interest for individuals (2026/27)
| Your total taxable income (incl. interest) | RWT rate to choose |
|---|---|
| Up to $15,600 | 10.5% |
| $15,601 – $53,500 | 17.5% |
| $53,501 – $78,100 | 30% |
| $78,101 – $180,000 | 33% |
| $180,001 and over | 39% |
| No IRD number given to the payer | 45% non-declaration rate |
Choosing a rate below your marginal rate leaves tax to pay when IRD squares up your income after 31 March. Choosing a higher rate means you wait for a refund. If you have given your IRD number but no rate, a new account defaults to 33%.
How dividend RWT and imputation credits work
NZ companies pay tax at 28% and can attach that tax to dividends as imputation credits, up to 28/72 of the cash dividend. For RWT the dividend is grossed up: gross dividend = cash + imputation credits. RWT = 33% × gross dividend − imputation credits.
| Cash dividend | Imputation credits | Gross dividend | RWT deducted | You receive |
|---|---|---|---|---|
| $720 (fully imputed) | $280 | $1,000 | $50 | $670 |
| $100 (unimputed) | $0 | $100 | $33 | $67 |
At year end the gross dividend is taxed at your marginal rate. Imputation credits and RWT are credited against that tax. RWT you overpaid is refunded, but excess imputation credits are not refunded — they are generally converted into a loss you carry forward.
Worked examples
1. Term deposit interest
Kiri earns $70,000 in wages and $1,000 of interest with RWT at 33%. RWT is $330 and she receives $670. Her total income of $71,000 is in the 30% band, so the tax on the interest is $300 and she can expect about $30 back. Switching her RWT rate to 30% would match her income.
2. Working back from the net amount
If $670 landed in Kiri’s account after 33% RWT, the gross interest was $670 ÷ 0.67 = $1,000.
3. Fully imputed dividend on a lower income
Ben earns $20,000 and receives a $720 fully imputed dividend. Gross dividend $1,000, RWT $50. Tax at his 17.5% rate is $175, which his $280 of imputation credits more than cover. The $50 RWT is refunded; the extra $105 of imputation credits is not refunded.
What this calculator does not cover
- PIE funds (including most KiwiSaver funds) use a prescribed investor rate (PIR), not RWT.
- Non-residents pay non-resident withholding tax (NRWT) or the approved issuer levy instead of RWT.
- Dividends from overseas companies (for example Australian franking credits) and foreign investment fund income.
- Companies, trusts and Māori authorities, which have different RWT rate options.
- Joint accounts: interest and RWT are usually split between the account holders.
Official sources
Checked 2 November 2026:
Frequently asked questions
What RWT rate should I choose in NZ?
The rate that matches your total taxable income including the interest: 10.5% up to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000 and 39% above. Without an IRD number the bank must use 45%.
Is RWT my final tax on interest?
Usually it is credited against the tax on your interest when IRD squares up your income after 31 March. If your RWT rate matches your marginal rate there is normally nothing more to pay.
How much RWT is taken from a fully imputed dividend?
About 5% of the gross dividend. RWT is 33% of the gross dividend minus the 28% imputation credits, so a $720 cash dividend with $280 of credits has $50 RWT deducted.
Can I get excess imputation credits refunded?
No. RWT is refundable, but excess imputation credits are generally converted into a loss that is carried forward.
How do I work out gross interest from the amount I received?
Divide the net interest by (1 − your RWT rate). For example, $670 received after 33% RWT is $670 ÷ 0.67 = $1,000 gross.
Does RWT apply to KiwiSaver or PIE funds?
No. PIE funds, including most KiwiSaver funds, are taxed at your prescribed investor rate (PIR) instead.