NZ UOMI calculator — use-of-money interest on overdue tax

Estimate the IRD use-of-money interest accruing on an overdue tax balance. The UOMI rate is set by Order in Council and changes through the year — always check IRD's current rate before relying on the result.

Rate field default is illustrative only. Verified 2026-06-06. Source: IRD — use-of-money interest.

Your shortfall

Outstanding tax amount

UOMI rate (% per year)

UOMI rate is reset by Order in Council and changes through the year. The default shown is illustrative — always check the current rate at IRD's UOMI page before relying on a calculation.

Days overdue

Estimated UOMI

UOMI accrued over 90 days

$269.01

Daily interest: $2.99

Outstanding principal$10,000.00

UOMI at 10.91%+$269.01

Estimated total payable$10,269.01

Estimate only. UOMI applies in addition to the 1% initial late-payment penalty and the 4% incremental penalty after 7 days. This calculator computes simple interest at the entered rate over the entered period — IRD may apply different rates across the period if the Order in Council rate changed mid-period. For an authoritative figure, use the UOMI calculator in myIR or contact IRD.

How UOMI works

UOMI runs from the day after the original tax due date until the day the tax is paid. It accrues at the rate the Commissioner sets by Order in Council, calculated daily on the outstanding balance. UOMI applies in addition to the late-payment penalties:

1% initial late-payment penalty (day after due date)
4% incremental penalty (seven days after due date)
UOMI from the day after the original due date

For provisional tax shortfalls, UOMI applies from the relevant P1 / P2 / P3 instalment date. Using the "standard option" or AIM can limit UOMI exposure in some situations.

FAQ

What is UOMI?

Use-of-Money Interest (UOMI) is interest IRD charges on overdue tax. It runs from the day after the original due date until the day the tax is paid in full. UOMI is on top of the late-payment penalties — 1% initial penalty plus a 4% incremental penalty after 7 days.

How is the UOMI rate set?

The Commissioner of IRD sets the rate by Order in Council, reflecting movements in the underlying market interest rates. The rate is reviewed several times a year and can change mid-quarter. Always check the current rate at IRD's UOMI page before relying on a snapshot number.

Can I get UOMI remitted?

IRD can remit (cancel) UOMI in limited circumstances — for example if the underpayment was due to an IRD error or a serious hardship case. Voluntary disclosure may also reduce or eliminate the UOMI exposure on a previously undeclared liability. A registered tax agent can negotiate remission on your behalf.

Does UOMI apply to provisional tax shortfalls?

Yes — if your final residual income tax exceeds the provisional tax you paid, UOMI applies on the shortfall from the relevant provisional payment dates. Use of "safe-harbour" estimation methods can avoid this in some situations. See our blog on provisional tax for the rules.

NZ tax deadlines 2026 — when each return / payment is due.
NZ tax calculator — work out your annual tax before checking UOMI exposure.

Need to deal with an IRD shortfall?

UOMI, penalties and voluntary disclosure timing all interact. We refer every quote request to Lynch & Associates, our Auckland partner firm — IRD-registered tax agents who can represent you and negotiate UOMI remission where the rules allow. Reply within one business day.

Get a quote — free for users