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19 September 2017

If you receive income, you must pay tax. So if you have rental income, you have to pay tax on it, right?

Maybe, maybe not – if you get rent from boarders or homestays.

Boarders and homestays

When you get income from boarders or homestays, your tax position depends on how many boarders you have, and how much you charge, compared with the IRD’s standard-cost method. In other words:

If you have . . .                 Then the standard 2017 cost is . . . 
One or two boarders        $263 a week for each
Three or four boarders    $263 for boarders one and two, and
$215 for boarders three and four

If you charge less than standard-cost figures for four or fewer boarders, you don’t have to declare that income. When you charge more than the IRD figures you may have to pay tax. 

If you would like more information around this, please contact us. 




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