NZ Dividend Tax Calculator
Calculate your tax on dividends including imputation credits. See how much additional tax you owe — or if the credits cover it.
How NZ Dividend Imputation Works
NZ companies pay 28% tax on profits. When distributing dividends, they can attach imputation credits representing tax already paid. Your dividend is "grossed up" (cash + credits) and taxed at your marginal rate, then the credits are subtracted.
Example: You receive $1,000 cash dividend with $389 imputation credits.
Grossed-up income: $1,389
Tax at 33% marginal rate: $458
Less imputation credits: −$389
Additional tax payable: $69
Fully vs Partially Imputed
| Type | Credits | Your Tax |
|---|---|---|
| Fully imputed | 28/72 of cash dividend | Only the gap between 28% and your rate |
| Partially imputed | Less than maximum | More tax to pay on unimputed portion |
| Unimputed | None | Full tax at your marginal rate |
Frequently asked questions
What are imputation credits?
Imputation credits represent company tax already paid on your dividend. NZ companies pay 28% tax on profits. When they distribute dividends, they can attach imputation credits so you're not taxed twice on the same income.
What is a fully imputed dividend?
A fully imputed dividend has the maximum imputation credits attached (28/72 of the cash dividend). For example, a $1,000 cash dividend fully imputed carries $388.89 in credits, meaning $1,388.89 of company profit was earned to pay you $1,000.
Do I still owe tax on imputed dividends?
It depends on your marginal tax rate. If your rate is above 28%, you'll owe the difference. If your rate is 28% or below, the credits fully cover (or exceed) the tax, and you may receive a credit.
How are dividends from foreign companies taxed?
Foreign dividends don't carry NZ imputation credits. They're taxed as income at your marginal rate. If the FIF rules apply (foreign shares over $50,000 cost), the FIF regime takes precedence.
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Sources: IRD — Dividends. Last updated March 2026.
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