Educational information only, not tax advice. Rules and figures change — confirm your situation with a qualified New Zealand tax professional before filing.
New Zealand · New Zealand · Short-term rental taxes
Short-Term Rental Taxes in New Zealand
Short term rental taxes in New Zealand: declare Airbnb and bach income to IRD, apply the mixed-use asset rules to holiday homes, and know why platforms add 15% GST but pass non-registered hosts an 8.5% credit.
The 30-Second Answer
- Short-term rental tax in New Zealand starts with income tax: all short-stay income goes in your IR3 return for the tax year ending 31 March, taxed at your marginal rate (10.5%–39%) after deducting rental expenses.
- Since 1 April 2024, online marketplaces such as Airbnb, Booking.com and Bookabach charge 15% GST on bookings from non-GST-registered hosts and pass you an 8.5% flat-rate credit. You only have to register for GST yourself once taxable supplies exceed $60,000 in 12 months.
- A holiday home that you also use privately and that sits unused for 62 days or more in the year falls under the mixed-use asset rules: expenses are apportioned between income-earning and private nights, and some losses are quarantined.
- There is no national or council bed tax in force, but councils such as Auckland and Queenstown Lakes charge short-stay properties higher business or mixed-use rates, and selling within 2 years can trigger the bright-line test.
Deductions
What New Zealand Short-Stay Hosts Can Deduct
Expenses incurred in earning short-stay income are deductible against it. Anything that also serves private use (your own nights at the bach, a shared home) must be apportioned.
For a mixed-use holiday home, deductible share = income-earning nights ÷ (income-earning nights + private nights) × expenses. Private nights include stays by you, associated persons and anyone paying less than 80% of market rent (IRD QB 25/03).
Filing Calendar
Key Dates & Filing Calendar
New Zealand's tax year runs 1 April to 31 March. If your end-of-year tax was more than $5,000, you will also pay provisional tax in instalments the following year.
Holiday-home owners: log every income-earning night, private night and unused day up to 31 March. Those counts drive the mixed-use apportionment and the 62-day, $4,000 and 2% tests.
Inland Revenue — Timelines at the end of the tax year; Filing GST; Provisional tax; Information reporting overview (ird.govt.nz)
Tax Treatment
Dedicated Short-Stay vs. Holiday Home: Which Rules Apply?
New Zealand has no flat-rate rental regime. The big choice is set by how you use the property: a dedicated short-stay follows the ordinary rental rules, while a bach you also enjoy yourself usually falls under the mixed-use asset rules.
Dedicated Short-Stay Property
Ordinary rental rules — full deductions, no private use
- Declare all short-stay income, including cleaning fees you charge, in your IR3 with the rental income schedule.
- Deduct interest (100% deductible from 1 April 2025), rates, insurance, repairs, platform fees and chattel depreciation.
- Residential loss ring-fencing (from 2019–20) generally stops excess deductions reducing your salary income — they carry forward against future rental income.
- The building itself depreciates at 0%; chattels such as furniture and appliances can be depreciated.
No income ceiling — GST registration is required once taxable supplies exceed $60,000 in 12 months
Holiday Home — Mixed-Use Asset Rules
Apportion costs when the bach is used privately and sits unused 62+ days
- Apply when the property is used privately and to earn income, and is unused for 62 days or more in the tax year.
- Private use includes you, associated persons and anyone paying less than 80% of market rent.
- Deductible share = income-earning nights ÷ (income-earning nights + private nights) × expenses.
- Gross income under $4,000 can be left out of your return (no deductions either); if income is under 2% of the property's value and you make a loss, the excess is quarantined and carried forward.
Opt-out available while gross income from the property is under $4,000 a year
Depreciation
Depreciation for New Zealand Short-Stay Properties
Buildings are no longer depreciable in New Zealand, so the value is in the chattels: furniture, appliances, carpets and other fit-out.
| Asset | Typical write-off period | Notes |
|---|---|---|
| Residential building | 0% (not depreciable) | Buildings with an estimated useful life of 50 years or more depreciate at 0%. Land is never depreciable. |
| Low-value items (under $1,000) | Deduct in full | Assets costing less than $1,000 bought from 17 March 2021 can be expensed in the year of purchase. |
| Furniture, appliances, carpets & curtains | IRD rate per asset | Rates depend on the asset class and acquisition date — use IRD's depreciation rate finder (IR265 schedule). |
| Investment Boost (new assets from 22 May 2025) | 20% upfront deduction | Extra first-year deduction for eligible new business assets; residential rental buildings are excluded. |
Keep a fixed-asset register with each chattel's cost, date and rate. Items can be depreciated individually or pooled.
Selling chattels for more than their tax book value creates depreciation recovery income. Separately, selling the property within 2 years of acquiring it can make the gain taxable under the bright-line test (your main home is excluded).
GST & Local Rates
GST and Council Charges on New Zealand Short Stays
New Zealand has no lodging tax or occupancy tax on guests. The guest-facing charge is GST, applied by the platform or by you if registered; councils recover more through property rates instead.
Under the marketplace rules for listed services, platforms charge GST on short-stay accommodation from non-registered hosts and split it with IRD as shown below.
15% GST on platform bookings (8.5% credited back to non-registered hosts)
Inland Revenue — Short-stay and visitor accommodation; Auckland Council — Rating of online accommodation providers; QLDC — Short-term visitor accommodation
| Booking type | Who collects & remits | What it means for your books |
|---|---|---|
| Airbnb, Booking.com or Bookabach booking (not GST-registered) | Platform charges 15% GST, pays you the 8.5% flat-rate credit and remits the rest to IRD | No GST return for you; decide whether to include the credit as income and keep the platform statements |
| Platform booking (GST-registered host) | Platform accounts for GST on the booking unless you qualify to opt out (e.g. 2,000+ nights on one marketplace or $500,000+ of supplies) | Stop returning GST on those bookings yourself but keep claiming GST on your costs |
| Direct booking (your own site, repeat guests) | You — GST only if you are registered | Include direct income when testing the $60,000 registration threshold |
Council rates are billed to the owner, not the guest. Auckland moves homes booked for more than 28 nights a year onto a sliding share of business rates (25% business at 29–135 nights, 50% at 136–180, fully business above 180). Queenstown Lakes rates registered residential visitor accommodation as Mixed Use (roughly +25–35%) up to 180 nights and Accommodation (+50–80%) beyond.
Platforms
How Airbnb, Bookabach & Booking.com Handle New Zealand Tax
Airbnb tax in New Zealand is mostly GST handled at platform level: the marketplace charges 15% and passes non-registered hosts an 8.5% credit. Income tax stays your job.
| Platform | Reports your income | Collects the local lodging tax | Annual earnings summary |
|---|---|---|---|
| Airbnb | Seller income reported under the OECD platform reporting rules (to IRD or exchanged with IRD) | Yes — 15% GST on accommodation and cleaning fees; 8.5% flat-rate credit to non-registered hosts | Transaction History shows gross earnings and the credit as 'Host remitted tax' |
| Vrbo / Bookabach | Seller income reported under the OECD platform reporting rules | Yes — adds 15% GST for non-registered owners and pays an 8.5% flat-rate credit (bookings from 1 April 2024) | Booking and payout history in the owner dashboard |
| Booking.com | Seller income reported under the OECD platform reporting rules | Yes — collects 15% GST on the room rate; pays 8.5% to non-registered properties and 6.5% to IRD | Reservation and payment statements in the Extranet |
| Direct bookings | No third-party report — declare everything in your IR3 | No — you charge GST only if you are registered | Keep your own booking ledger and bank records |
Using Multiple Platforms?
Each marketplace applies GST and the 8.5% credit only to its own bookings, but IRD's $60,000 GST registration test looks at all your taxable activities together — Airbnb, Vrbo, Booking.com and direct stays combined. Add up every channel before assuming you are under the line.
OECD Platform Reporting — New Zealand's DAC7 Equivalent
DAC7 is an EU directive, but New Zealand adopted the OECD model reporting rules from 1 January 2024. Marketplaces report seller and property-rental information to IRD by 7 February each year and must send you a copy; IRD also receives data exchanged by overseas tax authorities.
Airbnb Help Center — GST collection in New Zealand (article 3567); Vrbo Help — GST for properties in New Zealand; Booking.com Partner Hub — GST rules for New Zealand
Illustrative P&L — Dedicated Short-Stay Property (NZ$)
Example only: one property with no private use, non-GST-registered host, 8.5% flat-rate credits left out of income (IRD lets you choose). 30% marginal rate. Not tax advice.
Record-Keeping
Stay Audit-Ready: What to Keep and How Long
IRD matches platform reports against your return. Records also prove your night counts for the mixed-use rules and your dates for the bright-line test.
| Keep | How long | Why |
|---|---|---|
| Booking records and platform statements (incl. flat-rate credits) | 7 years | IRD receives platform seller reports and cross-checks declared income |
| Night-by-night calendar: income, private and unused days | 7 years | Drives mixed-use apportionment and the 62-day, $4,000 and 2% tests |
| Receipts, council rates notices and loan interest statements | 7 years | Substantiates every deduction you claim |
| Chattel register (cost, date, depreciation rate) | 7 years | Supports depreciation claims and depreciation recovery on sale |
| Purchase and settlement documents | 7 years after you sell | Fix the bright-line start date and your cost if the sale is taxable |
IRD requires rental records to be kept for 7 years, even after you stop renting the property out.
Estimator
Short-Term Rental Tax Estimator
Plug in your bookings and costs to see your likely taxable position.
Your Numbers
Total short-term-rental income, before costs.
Allowable running costs, mortgage interest, depreciation and platform fees.
Your top income-tax band, as a percentage.
Estimated tax owed
Income tax on your net rental profit at your marginal rate.
Illustrative estimate. A simplified model to orient you — it is not tax advice. Confirm your situation with a qualified local professional.
Sources & notes
Educational summary based on Inland Revenue, council and platform sources checked in September 2026. Figures are in New Zealand dollars. Confirm your position with IRD or a chartered accountant before filing.
- Inland Revenue — Short-stay and visitor accommodation — 15% GST, 8.5% flat-rate credit, $60,000 threshold. ird.govt.nz/sharing-economy/sellers-of-listed-services/short-stay-accommodation
- Inland Revenue — Mixed-use assets — 62-day unused test, $4,000 opt-out, 2% quarantine. ird.govt.nz/income-tax/income-tax-for-businesses-and-organisations/types-of-business-expenses/mixed-use-assets
- IRD Tax Technical — QB 25/03 Mixed-use asset rules and short-stay accommodation — 80% market-rent test and apportionment formula. taxtechnical.ird.govt.nz/questions-we-ve-been-asked/2025/qb-25-03
- Inland Revenue — Rental income guide (IR264) — 0% building depreciation, $1,000 low-value assets, ring-fencing, 7-year records. ird.govt.nz/-/media/project/ir/home/documents/forms-and-guides/ir200---ir299/ir264/ir264.pdf
- Inland Revenue — Residential property interest rules and bright-line test — 100% interest deductible from 1 April 2025; 2-year bright-line. ird.govt.nz/property-interest-rules and ird.govt.nz/property/buying-and-selling/when-you-need-to-pay/the-brightline-test
- Inland Revenue — Timelines, GST filing and platform reporting — 7 July IR3, 7 February tax, 28th GST, 7 February platform reports. ird.govt.nz/income-tax/income-tax-for-individuals/what-happens-at-the-end-of-the-tax-year/timelines-at-the-end-of-the-tax-year
- Auckland Council — Rating of online accommodation providers — 28/135/180-night business-rate bands; APTR not reinstated. aucklandcouncil.govt.nz/en/property-rates-valuations/accommodation-provider-targeted-rate.html
- Queenstown Lakes District Council — Short-term visitor accommodation & proposed visitor levy — Mixed Use / Accommodation differentials; 5% levy on hold. qldc.govt.nz/services/rates-property/short-term-visitor-accommodation
- Airbnb Help Center — GST collection and remittance in New Zealand — How Airbnb applies 15% GST and the 8.5% credit. airbnb.com/help/article/3567
Questions
Frequently Asked Questions — New Zealand STR Taxes
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