Boarder Income Calculator NZ 2025/26
Calculate tax-free boarder income using the IRD standard-cost method. Most New Zealand homeowners who host boarders or homestay students pay zero tax โ find out where you stand.
Try another scenario
How to Use This Calculator
Tab "Boarder" โ room plus meals
Enter the number of boarders, your weekly charge per boarder, the number of weeks occupied per year, and whether you provide meals. The calculator shows your annual gross income, the tax-free portion under the IRD standard-cost method, any taxable excess, estimated tax, and your net income.
Tab "Homestay Student" โ international student hosting
For families hosting international students through an education agency or independently. Enter your weekly fee (net of any agency commission), the number of students, and weeks hosted. The same $233/week IRD threshold applies โ many homestay families pay no tax at all.
Tab "Lodger" โ room only, no meals
If you rent out a room without providing meals or significant personal services, your tenant is a "lodger". The standard-cost method still applies, but the maximum is 2 lodgers. If you do provide meals, switch to the Boarder tab โ you can host up to 4 people.
The Standard-Cost Method Explained
$233 per week ร number of boarders ร weeks occupied
Taxable income:
Annual gross income โ tax-free threshold
(minimum $0 โ cannot be negative)
Maximum boarders under standard-cost:
Up to 4 boarders (meals provided)
Up to 2 lodgers (room only, no meals)
Example โ 1 boarder at $200/week for 48 weeks:
Gross income = $200 ร 48 = $9,600
Tax-free = $233 ร 48 = $11,184 (exceeds income)
Taxable = $0 โ all income is within the threshold
Example โ 1 boarder at $280/week for 48 weeks:
Gross income = $280 ร 48 = $13,440
Tax-free = $233 ร 48 = $11,184
Taxable = $13,440 โ $11,184 = $2,256
Estimated tax = $2,256 ร 10.5% = ~$237
The standard-cost threshold is set by IRD and reviewed annually. The $233/week rate applies for the 2025/26 tax year. Source: Inland Revenue, Standard costs for boarders and home-stay students.
Boarders, Homestay Students, Lodgers โ What's the Difference?
| Type | Meals included? | Services? | Max (standard-cost) | Threshold |
|---|---|---|---|---|
| Boarder | Yes | Yes (laundry, etc.) | 4 people | $233/week each |
| Homestay student | Yes | Yes | 4 students | $233/week each |
| Lodger | No | Minimal | 2 people | $233/week each |
| Flatmate | Cost-sharing only | None | N/A | Generally no taxable income |
The key distinction between a boarder and a flatmate is whether personal services are provided by the homeowner. If you clean common areas, do laundry, or cook meals, you are providing boarding services and the standard-cost rules apply. If you merely share costs equally with no services, no taxable income typically arises.
The $233/Week Threshold Is Very Generous
IRD's standard-cost threshold is designed to cover the typical cost of providing a room, meals, and household services. In practice, most New Zealand boarder hosts pay no tax at all because:
- The average room-and-meals rate in many NZ regions is below $233/week
- Rooms are often vacant for some weeks each year (holidays, between boarders)
- The threshold applies per boarder, so two boarders doubles the tax-free amount
If you charge less than $233/week, the income is entirely tax-free and you are not required to declare it in your tax return โ though you should still keep records.
If you charge more than $233/week, only the excess is taxable. For example, if you charge $280/week, only $47/week ($280 โ $233) is added to your taxable income.
Actual Cost Method โ When Is It Better?
The standard-cost method is simpler and suits most hosts. However, the actual cost method may give a better result if:
- Your actual expenses (food, power, rates, insurance, mortgage interest) attributable to the boarder are higher than the standard-cost amount
- You live in a high-cost city where food and housing expenses are above average
- You have more boarders than the standard-cost maximum (5 or more)
Under the actual cost method you must track all relevant expenses and calculate the proportion attributable to your boarders. This requires more record-keeping but can reduce or eliminate your taxable income even if you charge well above $233/week.
Most hosts find the standard-cost method simpler and sufficient. If you are unsure which method suits your situation, speak to a tax professional or contact IRD.
Example โ Homestay Family Hosting Two Students
A family hosts 2 international students at $300/week each for 40 weeks
They are paid by the education agency after a $20/week commission is deducted. Their net income per student is $280/week.
A small amount of tax is due because the weekly charge exceeds the $233 threshold by $47/student. If they reduced the weekly fee by $47 (to $233/week net) they would pay no tax at all. The commission paid to the agency is deducted before calculating their income.
Record Keeping โ What You Must Keep
IRD requires you to keep records even when using the standard-cost method and even when all income is within the tax-free threshold. Good records to maintain:
- Name and contact details of each boarder or student
- Dates of occupancy (start date, end date, any gaps)
- Weekly fee charged and total amounts received
- Any additional services provided (meals, laundry, transport)
- Written agreement or tenancy contract if applicable
Records should be kept for at least 7 years from the end of the tax year they relate to. If IRD audits your return, you will need to produce these records.
NZ Boarder Income โ Key Facts 2025/26
| Item | Detail |
|---|---|
| Standard-cost threshold | $233/week per boarder (2025/26) |
| Max boarders (standard-cost) | 4 (with meals) / 2 (room only) |
| Homestay students | Same $233/week threshold applies |
| Taxable amount | Only income above $233/week per person |
| Must declare if below threshold? | No โ income within threshold is not declarable |
| Records required? | Yes โ always, even if no tax is due |
| Alternative method | Actual cost method (may suit high-cost areas) |
| Governing legislation | Income Tax Act 2007, IRD standard-cost determinations |
| Record retention | 7 years minimum |
| IRD contact | 0800 775 247 or ird.govt.nz |