Secondary Tax Calculator NZ

Got a second job or a side gig on wages? Find the right secondary tax code, see what comes out of that second pay packet, and check whether you are being over-taxed.

Your two jobs

Main job — annual gross

Second job — annual gross

Do you have a New Zealand Student Loan?

Your secondary tax code

Use this code

PAYE at 30% on the second job

Total income, both jobs

$72,000

$53,500 – $78,100

You keep from job 2

68c

of every $1 earned

Deductions from your second job income
Deduction	Rate	Per year	Per week
PAYE (SH)	30%	$3,600	$69
ACC earner levy	1.67%	$200	$4
Take-home from job 2	—	$8,200	$158

Are you being over-taxed?

Spread properly across the tax brackets, the PAYE on $12,000 of extra income would be about $3,600. Your SH code withholds $3,600. That is effectively spot on — your code is a good match for your income.

NZ secondary tax codes at a glance

New Zealand secondary tax codes and their PAYE rates
Code	Total income from all jobs	PAYE rate
SB	Total income up to $15,600	10.50%
S	$15,600 – $53,500	17.50%
SH	$53,500 – $78,100	30%
ST	$78,100 – $180,000	33%
SA	Over $180,000	39%

Add SL to your code if you have a student loan (for example S SL). The ACC earner levy applies on top of every code. Confirm your code with Inland Revenue.

Why a second job feels so heavily taxed

New Zealand's income tax is progressive: your first dollars are taxed at 10.5%, then 17.5%, and so on. Your main job already uses up those cheap lower brackets, so every dollar from a second job starts at the rate you have already climbed to. Secondary tax codes exist to apply that rate straight away instead of under-taxing you all year and handing you a bill.

So you are not being punished for working more — you are just seeing your real marginal rate for the first time. The catch is accuracy: if your hours or income change, the flat rate can drift away from what you actually owe, which is what the comparison above checks.

Want to see the same thing for a pay rise in your main job? Try the NZ pay rise calculator or the PAYE calculator.

A worked example

Say your main job pays $60,000 and you pick up weekend work worth $12,000. Your total income is $72,000, which sits in the SH band, so every dollar of the second job has PAYE withheld at 30% plus the ACC earner levy — and 12% more if you have a student loan.

That is not a penalty. Had all $72,000 come from one employer, those last $12,000 would have been taxed at exactly the same 30% marginal rate. The only thing the secondary code changes is that the higher rate is applied as you earn instead of arriving as a bill later.

Where it does go wrong is at band edges. If most of your income is in a lower band and the flat secondary rate over-collects, you get that back at the end of the year — or you can ask Inland Revenue for a special tax code so your pay is closer to correct each week.

Second job tax questions, answered

Do you pay more tax on a second job in New Zealand?

No, not overall. A secondary tax code simply applies one flat rate to your second job so the total tax across both jobs matches your real income. It looks higher on the payslip because your tax-free lower brackets are already used up by your main job.

Which secondary tax code should I use?

You pick the code based on your expected total income from all jobs: SB up to $15,600, S from $15,600 to $53,500, SH from $53,500 to $78,100, ST from $78,100 to $180,000, and SA above $180,000. Add SL to the code if you have a student loan.

What happens if I use the wrong secondary tax code?

You will either underpay or overpay through the year. Inland Revenue squares it up in your end-of-year assessment, so you either get a refund or a bill. Updating your code with your employer as soon as your income changes avoids surprises.

Does ACC come out of a second job too?

Yes. The ACC earner levy applies to all your salary and wage income until you reach the annual earnings cap, so it is deducted from your second job as well.

Can I use the M tax code on both jobs?

No. The M code belongs to your main or highest-earning job only. Using it on two jobs means both employers give you the low brackets, you are under-taxed all year, and you end up with a tax bill.

Is contract or self-employed income taxed the same as a second job?

No. Secondary tax codes apply to salary and wage income. Schedular payments to contractors use a withholding rate instead, and genuine self-employed income is squared up when you file your return.

Should I put KiwiSaver contributions on my second job?

You can, and the same 3% to 10% rates apply, along with employer contributions if you are eligible. It reduces your take-home pay from that job but increases what goes into your fund.

Work out your take-home pay

Keep going with the rest of the toolkit — each one uses the same up-to-date New Zealand tax settings.