Skip to main content

Payroll giving

You can donate money to charities and organisations directly from your pay.

Donations through payroll giving

If your employer offers payroll giving, you can make donations directly from your pay. Your employer will make the donation payment to the organisation for you.

The organisation you want to donate to must be on Inland Revenue’s list of approved donees.

Search IR’s list of approved donee organisations — Inland Revenue

You need to give your employer:

  • the name of the organisation you’ll be donating to
  • the organisation’s bank account number
  • how much you want to donate each pay
  • how often you want to donate, for example one-off, every pay, every second pay — your employer may have their own rules for this.

What happens when you get paid

Your employer will calculate your donation and take it out of your wages before they pay you.

They’ll also calculate your tax credit of 33.33 cents for each dollar you donate. Your employer takes this amount off your PAYE or withholding tax for that pay.

Example

Your pay is $1,400 a fortnight before tax and you donate $12:

  1. PAYE on an M tax code is $225.40
  2. tax credit is 33.33% of $12.00, so $4.00
  3. adjusted PAYE will be $221.40 — so your take-home pay, after tax and your donation, will be $1166.60.

Claiming end of year donations

You will not get a receipt when you make a donation through payroll giving. You cannot claim the payroll giving donations at the end of the year, as you have already received the tax credit.

You can still claim your other donation receipts online through myIR or by filing an IR526 Donation tax credit claim form after the end of the tax year.

Tax credits for donations — Inland Revenue

Who to contact for more help

If you need more help or have questions about the information or services on this page, contact the following agency.

Utility links and page information

Was this page helpful?
Thanks, do you want to tell us more?

Do not enter personal information. All fields are optional.

Last updated