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We may charge late payment penalties for unpaid tax. We will not charge late payment penalties on:

  • unpaid tax of $100 or less
  • student loan payments - but we may charge late payment interest.

Penalty amounts

Late payment penalties start from the day after the payment due date. If your tax is reassessed, we may set a new due date before we charge penalties.

Penalties for late payments can be given in 3 stages:

  • 1% penalty on the day after payment due date
  • 4% penalty for remaining tax  including penalties on 7th day after payment due date
  • 1% penalty every month the remaining tax including penalties is unpaid.

If it’s your first late payment in a 2 year period, we may give you a grace period before we charge penalties. We’ll tell you if you have a grace period and your new due date. If you do not pay by the new due date, we'll charge the penalty from the original due date.

These penalty rates do not apply for child support. Child support penalties have different rates.

Penalties for employment information 

If you file employment information but do not pay the correct amount, you may have to pay:

  • a non payment penalty
  • late payment penalties and interest.

The non payment penalty is 10% of the overdue amount. If you still do not pay, another 10% penalty will be added each month an amount remains unpaid.

When you pay the unpaid amount or enter into an instalment arrangement, the last 10% penalty given will reduce to 5%.

Māori authority penalties

Māori authorities with a debit balance in their Māori authority credit account (MACA) at 31 March will get a 10% penalty on that amount. The debit balance is further income tax due, and the penalty is a Māori authority distribution penalty tax.

Further income tax and Māori authority distribution penalty tax are due by 20 June following the end of the MACA year.