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Terminal Tax 7 February 2027 and Late Payment Penalties

17 October 2026 · Guide · Not tax advice

Short answer: The IRD calendar for 2026-27 lists the 2026 end-of-year income tax as due 7 February 2027 for people without a tax agent (7 April for agents' clients with a valid extension). Because 7 February 2027 is a Sunday and 8 February is the Waitangi Day observed holiday, the calendar shows the due date on Tuesday 9 February 2027.

Late payment penalties (IRD page, read in full 17 October 2026)

• Penalties start the day after the due date: 1% on that day; 4% on the remaining tax including penalties on the 7th day after the due date.
• A further 1% every month applies to some tax types but not to GST, income tax (including provisional tax) or Working for Families overpayments.
• If it's your first late payment in a 2-year period, the IRD may give a grace period and tell you the new due date; if you miss it, penalties are charged from the original due date.

Interest

Use-of-money interest (UOMI) is separate: calculated daily from the day after the due date until the balance is paid, doesn't compound and isn't included when penalties are calculated. The IRD's table shows 8.97% charged on underpayments (and 2.25% paid on overpayments) from 16 January 2026; the rate is set by formula and changes over time, so check the IRD. No interest applies to amounts under $100. Interest you pay on underpayments is deductible for business; interest the IRD pays you is gross income.

Made-up example

$2,000 unpaid on the due date: 1% = $20; on the 7th day 4% of $2,020 ≈ $80.80. Interest is extra. We did not verify rounding.

If you can't pay

The IRD offers instalment arrangements; the IRD's guide says a plan set up before the due date avoids the 4% penalty, with conditions (IR240 excerpt). Contact the IRD early.

FAQ

Is there a late filing penalty for the IR3? Yes: the IRD lists $50, $250 or $500 by net income; see late filing penalties.

Does the 7 Feb date apply to me? If you file via an agent with extension, 7 April applies (IRD calendar).

What we could not verify

• Whether a new interest rate has applied since 16 January 2026 (the IRD table read lists 8.97% as the latest).
• The instalment-arrangement statement (a plan before the due date avoids the 4% penalty) comes from an IR240 excerpt, not a page read in full.
• Exact rounding of penalties.
• Tax rates and brackets, Working for Families, KiwiSaver and other rules are not covered.
• Public holidays (including regional anniversary days) can move dates; we only applied the cases shown in the IRD calendar.

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