Terminal Tax Due Dates
Terminal tax due dates are the day the leftover income tax bill is payable after the year is assessed. For a 31 March year, Inland Revenue says most people pay by 7 February the year after the bill, or by 7 April if they have a tax agent and an extension of time.
That payment date is not the same as the day you file the return. It is also not 7 May, which is a provisional tax instalment date for many March balance date accounts. Reddit threads mix those three clocks. The rest of this page keeps them apart.
Three New Zealand situations, three clocks
Inland Revenue’s Provisional Tax category covers who pays instalments. This page is the wash up date after the return. The figures in the third card are Inland Revenue’s Andrew example, not a private assessment.
Situation: 31 March year. No tax agent. Inland Revenue example: a tax bill for 1 April 2024 to 31 March 2025 is due 7 February 2026.
Catch: 7 February 2026 was a Saturday. Inland Revenue’s 7 February page moved that payment to Monday 9 February 2026.
Action: pay on or before the next working day when 7 February lands on a weekend or public holiday. Confirm the date in myIR.
Situation: same 31 March year, but the account is linked to a tax agent with an extension of time.
Date: Inland Revenue: you have until 7 April to pay. For the 2024/25 bill that was 7 April 2026.
Action: ask the agent if the extension of time is still on. Linking an agent is not enough if Inland Revenue has withdrawn it.
Situation: Inland Revenue’s Andrew example. Residual income tax for the year ended 31 March 2025 is $8,000. He made $5,000 of voluntary payments.
Date: first year income tax is usually due 7 February the following year, or 7 April with an agent. No provisional tax during that first year on standard, estimation, or ratio.
Action: do not treat year one as tax free. If residual income tax is more than $5,000, instalments usually start the next year and can land in the same season as this bill.
Inland Revenue: most people need to pay their tax by 7 February the year after receiving a bill. If you have a tax agent and have received an extension of time, you have until 7 April to pay.
What is terminal tax, and which date is which?
Terminal tax is the wash up after residual income tax is compared with tax already paid. Inland Revenue’s refunds and tax bills page talks about “tax to pay” and uses 7 February and 7 April. Accountants still say terminal tax. A PAYE salary can still leave a bill if a tax code, PIR, or withholding rate was wrong.
| Date (31 March year) | What Inland Revenue uses it for | Who it usually hits |
|---|---|---|
| 7 July | Income tax return due | No tax agent and no extension of time. IR328: 7 July 2026 for the 2026 return |
| 31 March the following year | Income tax return due with a valid extension of time | Clients of tax agents. IR328: 31 March 2027 for the 2026 return |
| 7 February | End of year income tax payment | People and organisations who do not have a tax agent. IR328: 7 February 2027 for 2026 tax. Inland Revenue example: 1 April 2024 to 31 March 2025 was due 7 February 2026 |
| 7 April | End of year income tax payment with a valid extension of time | Tax agent clients. IR328: 7 April 2026 for 2025 tax. Inland Revenue: if you have a tax agent and have received an extension of time, you have until 7 April to pay |
| 7 May | Third provisional tax instalment on standard or estimation | March balance date accounts on those options. Not the terminal tax date |
IR328 April 2026 lists the 7 July, 31 March, 7 February, and 7 April dates in the table above, and says those dates are for a March balance date. If your balance date is not 31 March, Inland Revenue’s payment dates page tells you to log into myIR, open the income tax tile, and view provisional tax. Do not copy a blog calendar for a June or December year without checking myIR.
File first, pay later
Inland Revenue: for due dates that fall on a weekend or public holiday, they need to receive your payment on or before the next working day. Electronic payments on a provincial anniversary day still need to be in on the actual due date.
If you miss the date, or you cannot pay in full
Inland Revenue will charge interest and penalties on overdue amounts. Late payment penalties start the day after the due date: 1% that day, then 4% on the remaining tax including penalties on the 7th day. The extra 1% each month does not apply to income tax, including provisional tax. If it is your first late payment in a 2 year period, they may give a grace period and a new due date. Miss that new date and they charge from the original due date.
You can set up an instalment arrangement in myIR. IR240: set it up before the due date and keep to it, and they only charge the first 1% late payment penalty. Set it up on or after the due date and the 1% and 4% still apply. Interest still runs because it is a charge for the use of money, not a penalty. They will not charge or pay interest if you under or overpay by $100 or less.
Tax pooling funds can still be applied to end of year income tax if the transfer is requested within 75 days of that end of year date (76 days for some October, November, and December balance dates in a 29 February year). After that window, pooling cannot be applied to that tax and associated use of money interest. That is an Inland Revenue cut off, not a new due date that replaces 7 February.
Trap: 7 May is not terminal tax
Some blogs print 7 April as the only terminal tax date, as if every reader has a tax agent. Inland Revenue’s default is 7 February. 7 May is the third standard instalment for a 31 March year. On the standard option, residual income tax of $60,000 or more can start use of money interest from the day after that final instalment. That is an interest start date. It does not wipe the 7 February or 7 April bill. The safe harbour under $60,000 page covers that split. TMNZ still quotes a $2,500 provisional tax trigger on its terminal tax page. Inland Revenue’s live test is more than $5,000 tax to pay.