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US Expats Taxes in New Zealand Explained

Navigating US expats taxes in New Zealand can be complex. Learn about New Zealand tax rates for foreigners, how to file in both countries, and strategies to avoid double taxation while staying compliant.

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U.S. Expat Tax Deadline

15th June

Expat Tax Deadline

For U.S. expats, the automatic tax filing extension deadline is June 16th in 2025. If more time is needed, filing Form 4868 before this date extends the deadline to October 15th. The FBAR must also be submitted by October 15th. Certain special cases may qualify for an additional extension until December 15th.

New Zealand

Understanding Taxes for US Expats in New Zealand

Americans living in New Zealand must comply with New Zealand taxes while maintaining US tax obligations. Understanding taxes for expats helps ensure compliance, minimize tax liabilities, and avoid double taxation.

Tax Requirements

Tax Residency in New Zealand

Expats staying 183+ days per year are considered tax residents and taxed on worldwide income.

New Zealand Tax Rates for Foreigners

Progressive tax rates up to 39% for residents; non-residents taxed only on New Zealand income.

Capital Gains Tax

No formal capital gains tax, but certain asset sales may be taxed under income tax rules.

Goods & Services Tax (GST)

15% GST applies to most goods and services.

US Federal Tax Return (Form 1040)

American expats in New Zealand must file with the IRS, reporting worldwide income.

Foreign Earned Income Exclusion (FEIE)

Excludes up to $120,000 in foreign income if eligibility requirements are met.

Foreign Tax Credit (FTC)

Offsets New Zealand taxes paid against US tax liability.

US-New Zealand Tax Treaty

Helps prevent double taxation and defines tax treatment between both countries.

Superannuation & US Taxes

New Zealand KiwiSaver accounts are not tax-deferred under US tax law and must be reported.

Key Tax Insights

Tax Facts for US Expats in New Zealand

US expats in New Zealand must comply with New Zealand taxes and US tax laws while minimizing tax liabilities.

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Tax Residency Rules

Staying in New Zealand for 183+ days makes you a tax resident, meaning worldwide income is taxable.

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Double Taxation Avoidance

The US-New Zealand tax treaty allows for Foreign Tax Credit (FTC) or Foreign Earned Income Exclusion (FEIE) to reduce US tax liability.

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KiwiSaver & US Taxation

US expats in New Zealand must report KiwiSaver accounts to the IRS, as they are not tax-deferred under US law.

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    FAQs

    We Have All Your Queries Covered

    Have questions about your U.S. expat state taxes? We’re here to help. Below are answers to some common queries we encounter from expats around the world.

    Do US expats in New Zealand pay taxes in both countries?

    Yes, but they can claim Foreign Tax Credit (FTC) or Foreign Earned Income Exclusion (FEIE) to avoid double taxation.

    Progressive tax rates apply, with residents taxed up to 39% and non-residents taxed only on New Zealand income.

    Yes, the US-New Zealand tax treaty helps prevent double taxation and provides specific tax benefits for expats.

    Yes, KiwiSaver accounts are not tax-exempt under US tax law and must be reported to the IRS.

    Yes, US Social Security benefits may be taxable in New Zealand, but tax treaty benefits may apply.

    Yes, if they have foreign bank accounts exceeding $10,000, they must file an FBAR (FinCEN Form 114).

    Still have questions? Contact us today to get expert guidance on all your U.S. expat state taxes.

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