Courtesy of Dan Low of Grant Thornton Accountants.
This IRD determination is good news for people who rent out rooms in their own home through platforms such as Airbnb or Bookabach. For the 2025–26 tax year, Inland Revenue has increased the short-stay standard-cost rates to $65 per night for homeowners and $59 per night for tenants who rent their home, reflecting the annual CPI adjustment. If you rent out rooms in your main home for 100 room-nights or fewer per year, income up to these standard-cost amounts is generally exempt from income tax, meaning many casual hosts may have little or no tax to pay and no need to claim actual expenses.
Warning!! Always check with your Accountant that this is true and accurate.