What is an imputation credit?

An imputation credit represents company tax already paid by the New Zealand company on the profits behind your dividend. It is attached to the dividend so you are not taxed twice on the same earnings, and it offsets your personal tax bill.

How does Resident Withholding Tax work on dividends?

RWT is deducted at source so total tax on the dividend reaches 33% of the grossed-up amount. On a fully-imputed dividend the company has already covered 28%, so only about 5% extra RWT is withheld.

What if my marginal rate is 39%?

If your income puts the dividend in the 39% bracket, the imputation credit and RWT only cover tax up to 33%, so you pay the extra 6% top-up when you file your return.

Can I get a refund of unused imputation credits?

No. If your marginal rate is below the company rate, excess imputation credits are not refundable in cash. They are carried forward to offset tax in future years. Overpaid RWT, however, can be refunded.

Is my dividend data stored?

No. Everything is calculated in your browser with JavaScript. None of the figures you enter are uploaded or saved anywhere.

New Zealand Dividend Tax Calculator

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This New Zealand dividend tax calculator models the imputation system so you can see the gross dividend, the imputation credit, the Resident Withholding Tax (RWT) deducted, and the final cash you keep after applying your marginal rate. Everything runs in your browser.

How it works

New Zealand avoids double-taxing company profits using imputation credits:

Gross-up. A fully-imputed dividend carries an imputation credit of cash × 28 ÷ 72, which restores the dividend to its pre-company-tax value. The gross dividend is cash + credit.
RWT. Resident Withholding Tax tops the total deduction up to 33% of the gross dividend. The withheld amount is gross × 33% − imputation credit, often around 5% of the gross for a fully-imputed payout.
Marginal rate. The gross dividend is stacked on your other income and taxed across the brackets 10.5%, 17.5%, 30%, 33%, and 39%. The imputation credit and RWT are offset against that liability.

If your marginal rate is 39%, you owe a top-up at filing. If it is below the company rate, excess imputation credits are carried forward rather than refunded.

Example

A NZ$1,000 fully-imputed dividend carries an imputation credit of 1000 × 28 ÷ 72 = NZ$388.89, giving a gross dividend of NZ$1,388.89. RWT of 1388.89 × 33% − 388.89 ≈ NZ$69.44 is withheld, so you receive about NZ$930.56 in cash, with no further tax if your marginal rate is 33%.

Notes

This is an estimate. It ignores supplementary dividends for non-residents, the dividend withholding payment rules, and ACC or other levies. For an exact figure, use your dividend statement and Inland Revenue (IRD) guidance.