31 March rental tax checklist: eight figures for 2026/27
This article steps through eight figures to gather for the income year ending 31 March 2027 (the 2026/27 tax year, running 1 April 2026 to 31 March 2027). As at 20 October 2026, that year-end is still ahead, which makes now a practical time to set up your records rather than reconstruct them later.
What this article covers
This checklist focuses on annual New Zealand residential rental records for individual owners.
This article does not cover:
- Properties held in trusts, look-through companies (LTCs) or other structured arrangements
- Mixed-use or holiday-home properties, where private-use apportionment rules differ materially
- Non-resident owners, whose tax position needs separate review
- Properties sold or acquired during the year, or ownership changes needing separate tax review
For any of these situations, advice specific to your ownership structure is essential.
31 March 2027 is a year-end, not a filing deadline
The New Zealand income year runs from 1 April to 31 March. The date 31 March 2027 closes the 2026/27 income year — it is not itself the deadline for filing your return. Filing deadlines vary depending on whether you file directly or use a tax agent. Rather than rely on a date mentioned in any article, confirm your actual filing deadline with your accountant or directly with Inland Revenue.
Eight figures to gather before 31 March 2027
1. Gross rent received or accrued
Record total rent for 1 April 2026 to 31 March 2027, reconciled to what was actually received or legally earned. A weekly rent multiplied by 52 is a starting estimate only — it will not account for vacancies, rent-free periods or partial-year changes. Inland Revenue's guidance on calculating net rental income notes that each owner is responsible for recording their correct share, and that the IR3R form is used to work through rental figures before transferring them to your individual return (IRD rental income and paying tax).
2. Mortgage interest — separated from principal
Only the interest portion of your loan repayments is potentially deductible. Principal repayments reduce a debt and are not deductible. Your lender statements should separate these clearly. Treating the combined repayment as a deduction overstates your expenses and creates reassessment risk.
From 1 April 2025, the interest limitation rules no longer deny a percentage of otherwise eligible interest — 100% is potentially deductible, subject to the general deductibility, tracing and private-use requirements that have always applied (IRD interest rules page). For 2026/27, this position continues. To illustrate the practical difference: if you have $30,000 of otherwise eligible interest and an earlier 80% rate still applied, only $24,000 would be deductible — a $6,000 difference in deductions (not necessarily $6,000 in tax, which depends on your marginal rate).
3. Rates and insurance
Keep council rates invoices and landlord insurance records; these are ordinarily deductible rental expenses (IRD rental expense deductions).
4. Property management and letting fees
Keep invoices for property-management and tenant-finding fees.
5. Repairs and maintenance — distinguished from improvements
Routine repairs are generally deductible; capital improvements are not. IRD's guidance is clear that this depends on what the work actually involved, not on a cost threshold (IRD rental expense deductions). The classification depends on the actual work. Ask your accountant about uncertain items.
6. Body corporate levies
If your property is in a unit-title development, body corporate levies for ordinary maintenance and administration are generally deductible. Levies for capital improvements are not. Where a levy covers both, a reasonable apportionment is needed (IRD rental expense deductions). Retain the levy notices showing the breakdown.
7. Other operating costs
Accounting fees, advertising for tenants and similar costs are generally deductible. Keep invoices. IRD requires rental records — including receipts, bank records, tenancy agreements and loan documents — to be retained for at least seven years (IRD rental records page).
8. Private-use dates and asset purchase records
If the property was unavailable for rent due to owner use at any point during the year, record those specific dates. Only the income-producing portion of expenses is deductible, so a clear log of private-use periods is necessary for any apportionment calculation. Separately, retain receipts for any assets purchased during the year (appliances, heat pumps and similar items), including purchase dates and values — your accountant can review their tax treatment.
Ring-fencing: what happens if deductions exceed rent
Excess residential rental deductions are generally ring-fenced, meaning a rental loss cannot offset salary, wages or other non-rental income. The unused deduction carries forward and is applied against future residential rental income (IRD ring-fencing page). If your 2026/27 deductions exceed your gross rent, the resulting loss does not produce a refund against your PAYE income. This is a common point of confusion and worth clarifying with your accountant early.
A practical next step
Before your first accountant conversation, working through your figures in a deductions finder can help surface gaps — for example, interest entered at an outdated percentage, or a management fee omitted entirely. The ClearHold deductions finder lets you explore your inputs. It does not file returns or determine your legal treatment; those remain your accountant's role.
This article is general information only and does not constitute financial or tax advice. Tax rules can change and individual circumstances vary. Confirm your filing deadline and obtain advice specific to your situation from a qualified accountant or tax adviser. Current as at 20 October 2026.