Whether you're HODLing Bitcoin, trading Ethereum, diving into DeFi, or collecting NFTs, you need to know how New Zealand's tax rules apply to your crypto journey.
The Inland Revenue Department (IRD) has clear guidelines on cryptoassets, and with tougher enforcement and new reporting rules coming in 2026, staying compliant is more important than ever.
This guide breaks down everything you need to know about crypto taxes in New Zealand for 2025, including DeFi and NFTs, with practical tips to keep you sorted. Let's dive in and make crypto taxes less of a headache.
Crypto Is Property, Not Currency
The IRD treats cryptoassets like property, not legal tender, meaning they're taxed like shares or real estate. Whether you're trading, staking, or minting NFTs, your tax obligations depend on how you use your crypto. New Zealand doesn't have a specific capital gains tax, but profits from crypto are taxed as income under the Income Tax Act 2007. The golden rule? If you make a profit from "disposing" of crypto (selling, trading, or spending), it's likely taxable.
Taxable Crypto Activities in New Zealand
Here's a rundown of common crypto activities and how they're taxed:
1. Selling Crypto for Fiat (NZD)
Selling crypto for New Zealand dollars triggers a taxable profit (or loss) based on the sale price minus your acquisition cost (what you paid, including fees). This profit is added to your annual income and taxed at your marginal tax rate.
Example: Buy 1 BTC for $20,000 NZD, sell for $50,000 NZD. Taxable profit: $30,000.
2. Trading Crypto for Crypto
Swapping one crypto for another (e.g., ETH for BTC) is a taxable disposal. You calculate profit based on the fair market value of the crypto you're giving up at the time of the trade, compared to its acquisition cost.
Example: Trade 1 ETH (bought for $2,000 NZD) for 0.05 BTC when ETH is worth $3,000 NZD. Taxable profit: $1,000.
3. Spending Crypto
Using crypto to buy goods or services counts as a sale. Profit is the market value at the time of spending minus the acquisition cost.
Example: Buy a laptop for 0.1 BTC worth $5,000 NZD, originally purchased for $3,000 NZD. Taxable profit: $2,000.
4. Mining Crypto
Mining income is taxable based on the market value of the crypto when received. If mining is a business (regular, profit-driven), you pay tax on rewards when received and on profits when sold. Hobby mining (rare, small-scale) may not be taxable, but this is uncommon.
5. Staking and Airdrops
- ✦ Staking: Staking rewards are taxable as income based on their market value when received. Selling staked crypto later triggers another tax on profits.
- ✦ Airdrops: Airdrops are taxable if part of a profit-making scheme or business activity. Promotional airdrops are usually not taxable unless sold.
6. Crypto as Payment for Goods/Services
Accepting crypto for business transactions is treated as a barter deal. You report the NZD value of the crypto as income, and Goods and Services Tax (GST) applies based on that value.
7. Crypto Salaries
Crypto received as a salary is subject to Pay As You Earn (PAYE) tax, based on its market value when received.
8. DeFi (Decentralized Finance)
DeFi activities—like yield farming, liquidity provision, or lending—are increasingly popular, but they're a tax minefield. Here's how they're treated:
- ✦ Yield Farming/Staking in DeFi: Rewards (e.g., tokens from liquidity pools) are taxable as income when received, based on their NZD market value.
- ✦ Liquidity Pool Tokens: When you deposit crypto into a pool and receive LP tokens, it's not immediately taxable. However, selling or redeeming LP tokens is a disposal, triggering tax on profits.
- ✦ Lending: Interest earned in crypto (e.g., from lending on Aave) is taxable as income when received. Selling lent crypto later triggers tax on profits.
- ✦ DeFi Losses: Losses from failed DeFi projects or "rug pulls" may be deductible if the profit would have been taxable, but you must prove the loss.
Pro Tip: DeFi transactions are complex, with multiple events (e.g., swapping, staking, harvesting). Use tax software to track them, one of the best we recommend for user interface and now available in New Zealand is tax specialist Awaken.Tax for tailored advice.
9. NFTs (Non-Fungible Tokens)
NFTs—whether you're buying, selling, minting, or trading—are treated like other cryptoassets. Here's the breakdown:
- ✦ Buying NFTs: Purchasing with crypto triggers a taxable disposal of the crypto used, based on its market value at the time.
- ✦ Selling NFTs: Profit from selling an NFT (sale price minus acquisition cost) is taxable as income.
- ✦ Minting NFTs: If you create and sell NFTs as a business (e.g., regular sales with profit intent), the income is taxable. Hobby minting (e.g., one-off art sales) may not be taxable, but the IRD scrutinizes intent.
- ✦ NFT Airdrops/Giveaways: Promotional NFT airdrops are usually not taxable unless sold. If you receive NFTs for services (e.g., as a creator), they're taxable as income.
Example: You buy an NFT for 0.5 ETH (worth $2,000 NZD) and sell it for 1 ETH (worth $5,000 NZD). You pay tax on the $2,000 profit from the ETH disposal when buying and the $3,000 profit from the NFT sale.
Pro Tip: NFT transactions can pile up fast. Tools like Awaken Tax can simplify tracking, and Awaken Tax can also help with NFT-specific tax advice.
Non-Taxable Crypto Activities
Not everything triggers a tax bill:
- ✦ Buying Crypto with NZD: No tax until you dispose of it.
- ✦ Holding Crypto: HODLing doesn't trigger tax until you sell, trade, or spend.
- ✦ Wallet Transfers: Moving crypto between your own wallets isn't taxable.
- ✦ Gifts: Receiving crypto as a gift isn't taxable, but selling it later may be.
- ✦ Long-Term HODLing: Profits may still be taxable if acquired with intent to sell, but the IRD looks at your intent—infrequent HODLing is less likely to be scrutinized.
New Zealand's Progressive Tax Rates
Crypto profits are added to your annual income and taxed at these 2025 rates:
- ✦ $0–$14,000: 10.5%
- ✦ $14,001–$48,000: 17.5%
- ✦ $48,001–$70,000: 30%
- ✦ $70,001–$180,000: 33%
- ✦ Over $180,000: 39%
Example: A $50,000 job income plus $20,000 crypto profit totals $70,000, taxed across the relevant brackets.
GST and Crypto
Crypto itself is GST-exempt when bought or sold. However, if you accept crypto as payment for business goods or services, GST applies based on the crypto's NZD value at the time of the transaction.
Claiming Losses and Deductions
You can offset crypto losses against other income if the profit would have been taxable. Deductible expenses include:
- ✦ Transaction fees
- ✦ Mining hardware depreciation
- ✦ Electricity costs for mining
- ✦ Software subscriptions (e.g., tax tools)
- ✦ Professional fees (e.g., accountants like Awaken Tax)
Stolen or lost crypto may be deductible, but you must prove the loss and that the profit would have been taxable.
Record-Keeping: Your Tax Lifeline
The IRD requires records for seven years, including:
- ✦ Transaction dates
- ✦ NZD values at acquisition and disposal use CoinMarketCap for reliable data.
- ✦ Transaction types (buy, sell, trade)
- ✦ Crypto units involved
- ✦ Wallet addresses and exchange records
- ✦ Expense receipts
DeFi and NFT records are especially tricky due to multiple transactions. Tax tools like Awaken can automate this, saving you hours.
Filing Your Taxes
File crypto income in your Individual Tax Return (IR3) or via MyIR by July 7 for the April 1–March 31 tax year. Report crypto profits under "other income" if they don't fit standard categories. Made a mistake? Submit a voluntary disclosure to the IRD to minimize penalties.
New Crypto-Asset Reporting Framework (CARF)
From April 1, 2026, the OECD's CARF will require exchanges to report user data and transactions to the IRD by June 30, 2027. This includes crypto-to-crypto, crypto-to-fiat, and transfer details. The IRD will have unprecedented visibility, so compliance is non-negotiable.
Avoiding Penalties: The IRD Means Business
The IRD is cracking down, with 227,000 Kiwis holding crypto and 7 million transactions worth $7.8 billion in 2024. With $116 million in funding for audits, penalties are harsh:
- ✦ Tax evasion: 150% of the tax shortfall, fines up to $50,000, and up to five years in prison.
- ✦ Incorrect returns: Reassessments up to four years back (no limit for fraud).
Stay safe by reporting accurately and using tools like Awaken Tax.
Tax-Saving Tips for Crypto Kiwis
- Harvest Losses: Sell at a loss to offset other income.
- Time Sales: Realize profits in low-income years to stay in a lower tax bracket.
- Deduct Expenses: Claim all eligible costs, like fees and hardware.
- Use Tax Software: Try Awaken.Tax for easy tracking.
- Get Expert Help: Consult crypto tax specialists like Awaken.Tax for complex DeFi or NFT scenarios.
Common Myths Debunked
- ✦ "Crypto is anonymous": Nope! The IRD uses blockchain analytics and exchange data.
- ✦ "Only businesses pay tax": Individuals pay tax on profits if acquired for resale or trading.
- ✦ "No records needed for HODLing": Wrong! You need records for all transactions, even long-term holds.
Final Thoughts
Crypto taxes in New Zealand don't have to stress you out. Whether you're trading on Uniswap, minting NFTs, or HODLing BTC, understanding your obligations keeps you compliant and penalty-free. With CARF looming in 2026, now's the time to get organized. Need help? Check out the IRD's crypto guidance at www.ird.govt.nz/cryptoassets, use tax tools and consult experts at Awaken Tax for peace of mind.
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