Tax after death

A final income tax return needs to be filed covering 1 April to the date of death. This is the deceased's last personal return.

• Notify IRD of the death — call 0800 227 774 or use myIR. They'll link the executor to the deceased's account.
• Income up to date of death — wages, salary, NZ Super, interest, dividends, rental income, self-employment income
• If they were on PAYE only (no other income), IRD may issue an automatic assessment — you might not need to file anything
• If they had other income (rental, self-employment, investments), you'll need to file a return
• Refunds — if they've overpaid tax, the refund goes to the estate

Maybe. If the estate earns income after the date of death (interest on bank accounts, rent from a property, dividends), it needs its own IRD number and files its own returns.

• Small estates that are wound up quickly (within the same tax year, minimal income) — you may not need one. Ask IRD.
• Larger estates with ongoing income — apply for an estate IRD number through myIR or call IRD.
• The estate is taxed at the deceased's marginal tax rate for the first four years, then at the trustee rate (39%).

If the deceased was GST-registered (self-employed, business owner):

• A final GST return needs to be filed up to the date of death
• The executor can deregister for GST once the business is wound up
• If the business continues temporarily while being sold, the estate may need to stay registered
• Talk to the deceased's accountant — they'll know the specifics

Student loans are written off on death. IRD does this automatically once they're notified. The estate does not need to repay it. Neither does anyone else.