Airbnb Tax NZ — What Short-Stay Landlords Need to Know in 2025
all activities
by Airbnb
if not registered
Thousands of New Zealanders are renting out their homes or investment properties on Airbnb, Bookabach and Holiday Houses — but a lot of them have no idea how the tax works. Airbnb tax in NZ is actually more complicated than regular rental property tax because you have to think about income tax and GST, and the rules changed significantly from 1 April 2024. This guide explains everything in plain English so you know exactly what you need to declare, when GST applies, and what expenses you can claim. Check the official IRD short-stay accommodation page for the full technical detail, or talk to our rental tax team if you need someone to handle it for you.
What Is Short-Stay Accommodation?
IRD defines short-stay accommodation as accommodation provided to a guest for up to four consecutive weeks in a home that isn't the guest's regular place of living. This includes rentals listed on platforms like Airbnb, Bookabach, Booking.com and Holiday Houses.
It does not include accommodation for long-term residential tenants, boarders, or care home residents. So if you rent your property on a standard tenancy agreement, the regular rental property tax rules apply instead of the short-stay rules.
The key thing to understand is that short-stay accommodation is treated as a taxable activity by IRD — which means it has both income tax and potentially GST obligations that regular long-term rentals don't have.
Income Tax on Airbnb Income NZ
Every dollar you earn from Airbnb or any other short-stay platform is taxable income in New Zealand. It doesn't matter if it's your main home, a holiday house, or a separate investment property — the income needs to be declared in your IR3 tax return each year.
The good news is you can claim expenses against that income to reduce how much tax you actually pay. The expenses you can claim depend on how you use the property:
| Expense | Fully Deductible? | Notes |
|---|---|---|
| Airbnb platform fees / commission | ✓ Yes | Fully deductible |
| Cleaning costs | ✓ Yes | Fully deductible for rental periods |
| Rates and insurance | ✓ Partial | Proportional if mixed use |
| Mortgage interest | ✓ Partial | Proportional to rental use days |
| Repairs and maintenance | ✓ Partial | Proportional if mixed use |
| Linen, towels and supplies | ✓ Yes | For guest use — fully deductible |
| Photography and listing costs | ✓ Yes | Fully deductible |
| Chattel depreciation | ✓ Partial | Proportional to rental use |
| Property improvements | ✗ No | Capital — not immediately deductible |
| Personal use costs | ✗ No | Can't claim costs for private use |
The Big Change — GST and Airbnb from 1 April 2024
This is the biggest change to affect NZ Airbnb hosts in years and a lot of people still don't fully understand how it works. From 1 April 2024, online platforms like Airbnb are required to collect and pay 15% GST on all short-stay accommodation bookings in New Zealand — on behalf of the host.
What this means in practice depends on whether you are GST registered or not. The rules work completely differently depending on your registration status so it's important to understand which situation you're in.
How GST Works — Registered vs Not Registered
Here's how the new GST marketplace rules work for Airbnb hosts depending on your GST registration status:
| Situation | What Airbnb Does | What You Get | What You Do |
|---|---|---|---|
| NOT GST registered | Collects 15% GST from guests, keeps 6.5% for IRD | 8.5% flat-rate credit paid to you | Keep the credit — it compensates for GST on your costs. No GST return needed. |
| GST registered | Collects 15% GST, treats your supplies as zero-rated | No flat-rate credit | Report as zero-rated in your GST return. Keep claiming GST on costs as normal. |
Do I Need to Register for GST?
This is the question most NZ Airbnb hosts ask. The answer depends on your total taxable turnover across all your activities — not just your Airbnb income.
Add up all your taxable income
Include Airbnb income, any other short-stay rental income, self-employment income and any other GST taxable activities. Do NOT include your salary/wages or long-term residential rental income — these don't count towards the $60,000 threshold.
Check if you're over $60,000
If your total taxable turnover from all activities exceeds $60,000 in any 12-month period — you must register for GST. If you're below $60,000 you don't have to register but you can choose to if you want.
If jointly owned
If the property is jointly owned with a partner, the Airbnb income is treated as belonging to both of you together — it's NOT added to each owner's individual turnover separately. So for a jointly owned property, $100,000 in Airbnb income counts as one combined activity, not $50,000 each.
Register if required
If you hit the $60,000 threshold you must register for GST with IRD and start filing GST returns every 2 months (or 6 monthly if IRD approves). Tell Airbnb your GST registration number so they can update how they process your bookings.
A Real NZ Example — Do I Need to Register?
🏠 Example — Mike's Airbnb in Queenstown
Mixed Use Properties — When You Also Use the Property Yourself
A lot of NZ Airbnb hosts also use their property themselves — like a bach or holiday home that they rent out for part of the year but use personally for holidays. If this is you, the mixed-use asset rules apply.
Under these rules, you can only claim expenses in proportion to how much the property was used for income-earning purposes. The calculation is based on the ratio of rental days to total used days — but vacant days (when the property is neither rented nor used privately) are not counted.
For example, if your bach is rented out for 60 days and you use it yourself for 20 days in the year, the deductible proportion is 60 ÷ (60 + 20) = 75% of your expenses. Expenses like mortgage interest, rates and insurance can be claimed at 75%. The remaining 25% is private and not deductible.
If the property is vacant for 62 or more days per year and is used both privately and for rental, these mixed-use asset rules kick in automatically. If you're renting a room in your own main home through Airbnb, different rules apply — you may be able to use the short-stay standard cost method instead which simplifies the calculation.
The Short-Stay Standard-Cost Method
If you rent out rooms in your own home for 100 nights or less per year, you may be able to use IRD's standard-cost method instead of tracking all your actual expenses. This is much simpler and can save you a lot of paperwork.
Under this method, IRD sets a standard cost per night — currently $63 per night for the homeowner. You multiply the number of nights rented by $63 and that's your allowable deduction. If your rental income is less than the standard cost, you pay no tax on that income at all.
This standard-cost method only applies if you rent out your own home or rooms in your own home, rent for no more than 100 nights per year, and don't also claim actual expenses. You can't use both methods — it's one or the other.
What Expenses Can Airbnb Hosts Claim in NZ?
Platform Fees
Airbnb's commission and service fees are a direct cost of earning your rental income and are fully deductible. Keep your Airbnb payout statements as records.
Cleaning Costs
Professional cleaning between guests is fully deductible. Even if you clean yourself, you can't claim for your own time — but you can claim for cleaning products used.
Linen and Supplies
Towels, linen, toiletries and other guest supplies are deductible. These are direct costs of providing the accommodation so you can claim 100% of them.
Photography and Marketing
Professional photos for your Airbnb listing, listing fees and any advertising costs are all deductible as costs of earning your rental income.
Repairs and Maintenance
Repairs to the property are deductible — but if it's a mixed-use property only the proportional amount based on rental days applies. See our repairs vs capital guide for detail.
Mortgage Interest
Interest on the mortgage is deductible proportionally based on rental use. From 1 April 2025 interest is 100% deductible for most rentals. Read our mortgage interest guide.
Chattel Depreciation
Items like heat pumps, appliances, furniture and TV sets can be depreciated annually. For mixed-use properties you claim a proportional amount. Full detail in our chattel depreciation guide.
Accounting Fees
The cost of having your Airbnb tax return prepared by an accountant is itself a deductible expense. So the cost of getting this right is partly offset by the tax saving.
Airbnb Tax and Ring-Fencing Rules
One thing that often catches Airbnb hosts off guard is how the ring-fencing rules apply. Short-stay accommodation on a residential property is subject to the same ring-fencing rules as long-term rentals — meaning if your Airbnb expenses exceed your income and you make a loss, that loss is ring-fenced and can't offset your salary.
The loss gets carried forward to future years when your Airbnb activity makes a profit. For more detail on how this works read our ring-fencing rental losses guide.
The exception is if the property is your main home and you're using the standard-cost method — the ring-fencing rules don't apply in that situation.
📋 Key Takeaways
- All Airbnb and short-stay income in NZ is taxable and must be declared in your income tax return
- From 1 April 2024, Airbnb collects 15% GST on all NZ bookings on behalf of hosts
- If you're NOT GST registered, Airbnb passes you an 8.5% flat-rate credit to compensate for GST on your costs
- You must register for GST if your total taxable turnover from ALL activities exceeds $60,000 in any 12-month period
- Salary and long-term rental income do not count towards the $60,000 GST threshold
- Mixed-use properties (used privately and for rental) can only claim expenses proportionally based on rental days
- If you rent rooms in your own home for 100 nights or less you may use the simplified standard-cost method ($63 per night)
- Ring-fencing rules apply to short-stay rentals — losses carry forward rather than offsetting your salary
Frequently Asked Questions
Need Help With Your Airbnb Tax Return?
Airbnb tax in NZ is more complicated than most people think — especially with the new GST rules from 2024. At Elite Taxation we handle Airbnb and short-stay accommodation tax returns for hosts all across New Zealand — Auckland, Wellington, Christchurch, Hamilton, Tauranga and everywhere else. We'll make sure your income is declared correctly, your expenses are maximised and your GST obligations are handled properly.
Talk to Our Rental Tax Team →