Filing A US Tax Return From New Zealand

Whilst there is a wealth of information online regarding different parts of the US tax system, and how it affects those in New Zealand, less often found is some guidance on the basics.

In our short FAQ style article today, we’ll go over the basics of filing a US tax return from New Zealand.

Who needs to file a US tax return in New Zealand?

Almost any US citizen with income of any kind.

The United States ties tax residency to citizenship, meaning a US citizen who resides anywhere in the world potentially needs to file a tax return to the IRS each year.

Its important to note that you do not need to have US income in order to have a filing requirement, the US taxes worldwide income. Even those with only New Zealand employment would still likely need to file a US tax return.

What are the US tax filing thresholds from New Zealand?

For 2025, the income thresholds before needing to file a US tax return are approximately:

-          Earned Income (ie wages) – roughly $26,000 NZD

-          Self-employment income – roughly $1000NZD

The figure above is based on the Standard Deduction amount for 2025. For those who file as Married Filing Jointly, some filing thresholds double before a return is needed.

Do you need to file a US tax return in New Zealand without any income?

In some cases, yes. The US tax code is quite different to NZ, and in some cases we have income that isn’t recognised for NZ tax purposes but may exist in the US. For example, KiwiSaver growth can be taxable in the US.

Generally speaking, those with a KiwiSaver, NZ trust interest or interest in a New Zealand company, will usually need to file a US tax return annually even if they have no other income.

Do US citizens in NZ need to pay tax to the US?

Fortunately, for the vast majority of our clients, they do not owe any tax liability to the IRS each year. For those that do, it tends to be a small amount under $100.

We’re fortunate to have a Double Tax Agreement Treaty (DTA) in place between New Zealand and the US. Whilst this doesn’t prevent the need to file a US tax return, it does in most cases prevent a tax liability.

Do I need to use a New Zealand based US tax accountant?

This isn’t strictly necessary, but it is recommended. The United States and New Zealand have very different tax systems. Ensuring that your US tax return is correct does require an understanding of the New Zealand system.

Companies based outside of New Zealand are less likely to be aware of NZ specific tax issues, such as KiwiSaver, PIE tax, FIF and imputation credits. There are a number of excellent US tax preparation firms in New Zealand, who all understand these NZ specific tax issues well.

Can US tax returns be electronically filed from New Zealand?

Yes, certainly. Most US tax firms in NZ are authorised e-File providers, including The US Tax Team. We file most returns electronically, except in certain instances where the IRS requires us to paper file by post.

What are the US tax rates for 2025?

For single filers, 2025 US tax rates are as follows (in USD):

10% - On income up to $11,925

12% - On income up to $48,475

22% - On income up to $103,350

24% - On income up to $197,300

32% - On income up to $250,525

35% - On income up to $626350

37% - On all income above this

For taxpayers who are filing a married filing joint return, these thresholds roughly double.

As you can see above, the US operates a progressive tax rate system. This means that someone who had income of $100,000 would pay tax in a mixture of the above tax rates (not 22% on all income).

Summary

We’ve covered above some of the most common basic questions we see on US taxation in New Zealand.

At The US Tax Team New Zealand, we offer expert US tax advice, along with US tax return preparation. If you’re looking for US tax help, reach out to us today – info@usatax.nz