Key Takeaways
- 1.Crypto is treated as property by the IRD, not currency
- 2.Trading profits are taxable income at your marginal tax rate
- 3.Long-term holding with no intent to sell may not be taxable
- 4.Mining and staking income is taxable when received
- 5.Crypto is exempt from GST
- 6.You must keep detailed records of all transactions
How the IRD Classifies Cryptocurrency
The New Zealand Inland Revenue Department (IRD) classifies cryptocurrency as property, not as money or currency. This means crypto transactions are subject to income tax rules, similar to buying and selling shares or investment property.
The critical factor is your intent at the time of purchase. The IRD will look at why you bought the crypto to determine whether profits are taxable.
When Crypto IS Taxable
Trading for Profit
If you buy crypto with the intention of selling for profit (even once), your gains are taxable income. This includes day trading, swing trading, and any short-term buying/selling.
Part of a Business
If you run a crypto-related business (mining, arbitrage, market making), all profits are business income taxable at your marginal rate.
Mining & Staking Rewards
Income from crypto mining and staking is generally taxable as ordinary income when received. The taxable amount is the NZD value at the time of receipt.
DeFi Yields, Airdrops & Rewards
Yield from DeFi protocols, airdrops, and rewards programmes are generally taxable as income when received.
Salary Paid in Crypto
If you receive cryptocurrency as payment for work, it's taxable as employment or contractor income at the NZD market value when received.
When Crypto May NOT Be Taxable
Genuine Long-Term Investment
If you buy Bitcoin with the genuine intention of holding it long-term as a store of value (not for trading or disposal), appreciation may not be taxable. This is similar to buying gold or art as a long-term investment. However, this is a grey area — you must be able to demonstrate your intent.
Personal Use (De Minimis)
If you use small amounts of crypto for personal purchases (buying goods/services), this may fall under personal use and not be taxable. The IRD has not set a specific threshold.
NZ Tax Rates (2025/2026)
| Income Bracket | Tax Rate |
|---|---|
| $0 — $14,000 | 10.5% |
| $14,001 — $48,000 | 17.5% |
| $48,001 — $70,000 | 30% |
| $70,001 — $180,000 | 33% |
| $180,001+ | 39% |
Crypto trading profits are added to your total income and taxed at your marginal rate.
Record-Keeping Requirements
The IRD requires you to keep records of all crypto transactions for at least 7 years. For each transaction, record:
- -Date of transaction
- -Type (buy, sell, swap, transfer, staking reward, etc.)
- -Amount of crypto involved
- -NZD value at the time
- -Exchange or platform used
- -Fees paid
- -Your intention/purpose for the transaction
Recommended Tax Tools for NZ
Koinly
Popular crypto tax tool that supports NZD. Connects to most NZ exchanges. Generates IRD-ready tax reports. Free plan available for basic use.
CryptoTaxCalculator
Australian-made tool with excellent NZ support. Supports NZD, handles DeFi transactions, and generates IRD-compatible reports.
Frequently Asked Questions
Do I have to pay tax if I just buy and hold Bitcoin?
It depends on your intent. If you buy Bitcoin as a genuine long-term investment (like buying gold), appreciation may not be taxable. However, if you buy with any intent to sell at a profit, gains are taxable. Document your intent at the time of purchase.
Is swapping one crypto for another a taxable event?
Yes. The IRD considers crypto-to-crypto swaps as a disposal. You're effectively selling one crypto (triggering a potential taxable event) and buying another.
How does the IRD know about my crypto?
NZ exchanges are required to comply with AML/KYC regulations and may share data with the IRD. The IRD also participates in international information-sharing agreements. Offshore exchanges may also share data through CRS (Common Reporting Standard).
Can I claim losses on crypto?
If your crypto trading is taxable, then yes — losses can be offset against other income. However, you can only claim losses if the corresponding gains would have been taxable.
