Whenever you tip during your trip to New Zealand it is important to use the local currency, that is - New Zealand dollars. Otherwise you'll leave your service providers with cash they can't use without paying high fees on currency exchange.

While you can physically hand someone US dollars in New Zealand, it is strongly discouraged and highly impractical. New Zealand is not a tipping culture; service staff are paid a fair living wage, and tipping is neither expected nor required. If you do wish to reward exceptional service, it is much better to use the local currency (New Zealand Dollars, NZD). Giving someone USD creates a "chore" for them; they cannot spend it at a local shop and must take it to a bank or currency exchange, where they will lose a significant portion of the value to exchange fees and poor conversion rates. If you only have USD, it is better to skip the tip entirely or simply leave a glowing review on TripAdvisor, which is often more valuable to Kiwi staff than a few foreign bills. If you must tip cash, use the local "Gold Coins" ($1 or $2 NZD) for small gestures or add 10% to the bill via your credit card at a restaurant.