How Is Forex Trading Taxed in New Zealand? (2026–27 Guide)

Last reviewed 27 September 2026, for the 2026–27 tax year (1 April 2026 to 31 March 2027).

The short answer

Forex trading profits in New Zealand are taxable income, taxed at your normal marginal rate (10.5% to 39%) on top of everything else you earn. New Zealand has no capital gains tax, but that doesn't help forex traders: leveraged forex positions are financial arrangements, and gains on financial arrangements are income.

In practice that means five things:

• Convert each closed trade's result to NZD at the exchange rate for the day it closed.
• Net your gains and losses for the tax year, then subtract your trading costs.
• Add the result to your other income and apply the marginal tax brackets.
• If trading is a business for you, add the ACC earners' levy (1.75% in 2026–27).
• If last year's tax bill was over $5,000, you're into provisional tax.

Key figures for 2026–27

The brackets are unchanged from 2025–26; Budget 2026 didn't touch them. The ACC rate went up from 1.67%.

Why forex isn't a capital gain in NZ

People coming from Australian or UK forums get caught out by this one. Those countries have a capital gains tax, so trading profits often go through a CGT calculation with its own discounts and rates. New Zealand doesn't work that way.

Margin FX and forex CFDs are financial arrangements under the Income Tax Act. The financial arrangements rules treat the gain as income, full stop. You don't have to prove you're "in the business of trading" for the profit to be taxable. That question still matters for other things (losses, ACC, see below), but not for whether the profit is taxed.

That's also why a US-built journal gets NZ numbers wrong. Tools built around US capital-gains reporting are answering a different country's question.

Step by step

1. Convert every trade to NZD on its own close date

Most NZ traders run a USD account, so every trade's profit or loss has to be converted to New Zealand dollars. The rule of thumb is simple: use the exchange rate for the day the trade closed, one trade at a time.

IRD publishes mid-month and rolling-average rates you can use for some foreign amounts, but its own guidance says those approvals don't apply to financial arrangements. For forex positions, stick to the rate on the day. The Reserve Bank publishes a daily rate for each major currency, and that's what TradeLog NZ uses.

You can't take your account's USD profit for the year and convert it once. The dollar moves, so the same US$1,000 win is a different NZD figure in May than in March:

Illustrative rates, not actual RBNZ figures.

Hundreds of trades means hundreds of rate lookups. That's the part that eats a weekend in a spreadsheet, and it's the first thing TradeLog NZ automates.

2. Net the year and take off your costs

Add every closed trade's NZD result for the tax year. Winners and losers offset each other, so you're taxed on the net figure.

Then subtract the genuine costs of trading:

• platform and charting subscriptions (MT4/MT5 add-ons, TradingView)
• a VPS for an EA or automated strategy
• market data feeds
• trading-specific education
• accountant fees for your trading return
• a share of home office costs, if you trade from a dedicated space

One catch: with a spread-only broker, the spread is already inside each trade's P&L. Commission and swap usually are too, if your statement shows net results. Don't deduct them a second time.

3. Add it to your other income and apply the brackets

Your forex profit isn't taxed on its own. It stacks on top of your salary or other income, so it's usually taxed at your highest marginal rate, not the lowest.

Worked example (2026–27). You earn a $55,000 salary and make the $18,000 net forex profit from the table above, after costs.

• Total taxable income: $73,000
• Tax on $73,000: ($15,600 × 10.5%) + ($37,900 × 17.5%) + ($19,500 × 30%) = $14,120.50
• Tax on the salary alone ($55,000): $8,720.50, already deducted through PAYE
• Extra tax caused by trading: $5,400, all at 30%

If your trading counts as a business, ACC adds 1.75% of the $18,000: $315. Your salary only uses $55,000 of the $156,641 cap, so the full trading profit is liable.

Set aside about $5,715. No tax is withheld on trading income, so that money has to come from you.

Losses: what you can and can't do with them

A net forex loss for the year isn't wasted. It carries forward with no time limit and reduces tax in a later profitable year, as long as you keep recording it.

Whether a loss can also reduce your salary income in the same year is less straightforward. That generally depends on your trading being a business. If you're not sure, the cautious approach is to carry the whole loss forward. It overstates this year's tax a little but keeps the loss intact for later. TradeLog NZ does exactly that unless you tell it you trade as a business. It's worth confirming with an accountant before you file.

Provisional tax

Once your residual income tax (the tax left to pay after PAYE and other deductions) goes over $5,000 in a year, IRD expects the next year's tax in advance. Under the standard option you pay last year's residual income tax plus 5%, split into three:

A strong first year often catches people out. You don't pay provisional tax in that first year, because last year's bill was small. Then the following year you owe the whole first-year bill and the first instalments of the next year, within a few months of each other.

Open positions at 31 March

Most retail traders are cash basis persons under the financial arrangements rules. You recognise profit or loss when each trade closes, and you don't have to value open positions at the end of the tax year.

From the 2025–26 year, you're a cash basis person if your income and expenditure from financial arrangements is under $200,000, or your total financial assets and liabilities are under $2 million. Above both, you're on accrual treatment and need to account for unrealised movements at year end. At that scale, get an accountant who knows the FA rules.

ACC and GST

ACC. If trading is your business, the ACC earners' levy applies to trading profit: 1.75% in 2026–27. The $156,641 cap is shared with your salary, so a high salary leaves less room for trading income. Income like rent, interest and dividends doesn't use up the cap.

GST. Forex P&L is an exempt financial service. It never counts toward the $60,000 GST registration threshold. GST only comes into it if you also sell something taxable, like courses or signals.

Filing it

Forex income goes on your IR3. You report the net profit after deductible expenses; you don't send IRD your trade history. Keep your broker statements, your conversion workings and your expense receipts for seven years.

If you want to check your numbers before you start, the free NZ trading tax calculator runs the same brackets and ACC rules used above.

Frequently asked questions

Is forex trading taxable in New Zealand?

Yes. Leveraged forex positions are financial arrangements, and gains on financial arrangements are taxable income in New Zealand. You don't need to be trading as a business for your profit to be taxed.

Is there capital gains tax on forex in NZ?

No. New Zealand has no general capital gains tax, but that doesn't make forex profits tax-free. They're taxed as ordinary income at your marginal rate.

What exchange rate do I use to convert forex profits to NZD?

Use the rate for the day each trade closed, converting trade by trade. IRD's mid-month and average-rate approvals don't apply to financial arrangements. The Reserve Bank of New Zealand publishes a daily rate you can use.

What tax rate do I pay on forex profits in NZ?

Your marginal rate, applied to your combined income. For 2026–27 the rates are 10.5%, 17.5%, 30%, 33% and 39%. Because trading profit sits on top of your salary, it's usually taxed at your highest band.

Can I claim forex trading losses in NZ?

Yes. A net loss carries forward indefinitely against future income. Whether it can also offset your salary in the same year generally depends on whether your trading is a business, so check with an accountant.

Do I have to pay provisional tax on forex trading?

Only if your residual income tax for the previous year was over $5,000. For 2026–27 the standard-option instalments are due 28 August 2026, 15 January 2027 and 7 May 2027.

---

This is general information, not tax advice. Everyone's situation differs and the rules change. Talk to a qualified NZ accountant before filing. TradeLog NZ takes no responsibility for errors in your return.

Sources: IRD individual tax rates · IRD financial arrangements rules · IRD foreign currency conversion · IRD provisional tax · RBNZ exchange rates · ACC levies

Related: Forex day trading in NZ · Business vs passive trader · CFD and futures tax in NZ · Best trading tax software in NZ · Free NZ trading tax calculator