3 Dec 2020

MPs have signed off on new 39% top tax rate

1:14 pm on 3 December 2020

MPs have signed off on a new top tax rate of 39 percent for New Zealand's richest earners, kicking in from April next year.

Inland Revenue Tax declaration form.

Photo: RNZ / Richard Tindiller

The legislation was rushed through under urgency this morning with Labour and the Māori Party in support and National and ACT in opposition.

The Green Party chose to abstain because of the lack of a capital gains tax.

The new tax rate will apply to income over $180,000 a year.

It will affect the top 2 percent of earners, about 75,000 people.