Independent earner tax credit (IETC) explained

Last reviewed October 23, 2026

Can I get it?

You can get the IETC if all of these are true:

your income is between $24,000 and $70,000 a year
neither you nor your partner gets Working for Families
you don’t get a main benefit, NZ Super or a Veteran’s Pension (or an overseas version of these)

If you get one of those payments for part of a month, you can’t get the IETC for that whole month.

Your income means your total income for the year before tax, not just your pay from one job. Interest, rent and self-employed profit count too, so check the total if you’re close to $24,000 or $70,000.

How much do I get?

If your income is up to $66,000, you get the full $520. Above that, it gets smaller, and stops at $70,000:

Yearly income	IETC
$24,000 to $66,000	$520
$68,000	$260
$69,000	$130
$70,000 or more	Nothing

It goes down by 13 cents for every dollar you earn over $66,000.

How much IETC you get By yearly income, 2026–27

For people who don’t get Working for Families, a main benefit or NZ Super.

Between $66,000 and $70,000, that means you keep less of a pay rise than you might expect. Each extra dollar costs 30 cents in tax, 1.75 cents in ACC levy and 13 cents of IETC: 44.75 cents in all, or 56.75 cents with a student loan. You’re still better off with the rise.

How do I claim it?

Through your pay: give your employer a tax code declaration (IR330) with tax code ME, or ME SL if you have a student loan. You’ll get about $10 a week extra. Use ME for your main job only: secondary jobs use secondary codes.

At the end of the year: if you’re not sure you qualify, stay on tax code M. IRD will check after the tax year ends and give you the credit if you’re entitled to it, as a refund.

If you’re self-employed or have other income without tax taken off, IRD works out the credit from your tax return.

What if things change?

If your income rises over $70,000, or you or your partner start getting Working for Families or a benefit, switch back to tax code M with a new IR330. Otherwise you’ll have had a credit you weren’t entitled to, and IRD will ask for it back after the year ends.

See it in your pay

In our PAYE calculator, choose tax code ME to see your pay with the IETC. To understand the other codes, see NZ tax codes explained.

Frequently asked questions

How much is the independent earner tax credit?

Up to $520 a year, or $10 a week. You get the full amount on incomes from $24,000 to $66,000, and less from there up to $70,000.

Who can’t get the IETC?

People who get, or whose partner gets, Working for Families, and people who get a main benefit, NZ Super or a Veteran’s Pension, or an overseas version of these. You also need an income between $24,000 and $70,000.

What happens if I use tax code ME but earn over $70,000?

You’ll have had a credit you weren’t entitled to, so IRD will ask you to pay it back after the tax year ends. If your income might go over $70,000, use tax code M instead.

Can I get the IETC if I’m self-employed?

Yes, if your income is in the range and you don’t get Working for Families, a benefit or NZ Super. IRD works it out from your tax return after the tax year ends.

How is the IETC reduced between $66,000 and $70,000?

It falls by 13 cents for every dollar over $66,000. On $68,000 you get $260, on $69,000 you get $130, and on $70,000 or more you get nothing.