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PayRise NZ

NZ Tax Code Calculator 2026

Not sure whether you should be on M, ME, M SL or a secondary code like SH? Answer four quick questions and get the tax code to put on your IR330 declaration, with the deductions it triggers explained in plain English.

Find your tax code

Is this your main job or an extra job?
Do you have a New Zealand Student Loan?
Do you get Working for Families, a benefit or NZ Super?

Your tax code

ME

Main job with the independent earner tax credit

Your income of $70,000 sits inside the $24,000–$70,000 IETC range and you are not receiving Working for Families, a benefit or NZ Super, so you can claim up to $10 a week in credit.

PAYE income tax a year
$13,221
ACC earner levy
$1,169
Take-home pay (with 3% KiwiSaver)
$53,511

A guide only, not tax advice. Special situations — schedular payments (WT), casual agricultural work (CAE), a special tax code (STC) approved by IRD, or a tailored student loan rate — need confirmation with Inland Revenue.

Every New Zealand tax code explained

The full list of codes you can declare on an IR330, when each one applies and what it deducts.

CodeWhen it appliesWhat it deducts
MYour main or highest-earning job, no student loan, no Working for Families or benefit.Progressive PAYE 10.5% – 39% plus 1.67% ACC
M SLMain job and you have a New Zealand student loan.PAYE + ACC + 12% student loan above the pay-period threshold
MEMain job and you qualify for the independent earner tax credit (income $24,000–$70,000, no Working for Families, no benefit or NZ Super).PAYE + ACC, less the IETC of up to $10 a week
ME SLAs for ME, and you also have a student loan.PAYE + ACC + 12% student loan, less the IETC
SBSecond job and your total income from all jobs is $15,600 or less.10.5% PAYE + ACC (add SL if you have a loan)
SSecond job and total income is $15,601 – $53,500.17.5% PAYE + ACC
SHSecond job and total income is $53,501 – $78,100.30% PAYE + ACC
STSecond job and total income is $78,101 – $180,000.33% PAYE + ACC
SASecond job and total income is over $180,000.39% PAYE + ACC
NDYou have not given your employer an IR330 (no-declaration rate).45% flat PAYE + ACC — always fix this fast
WTSchedular payments — contractors invoicing through a labour-hire or listed industry.Your nominated withholding rate (usually 10% – 20%)
CAECasual agricultural employees on short, day-to-day engagements.Flat 17.5% PAYE + ACC

How to change your tax code

  1. 1. Work out the code — use the tool above, or check the table if you have schedular payments or casual agricultural work.
  2. 2. Fill in an IR330 — a one-page Tax code declaration from Inland Revenue. Include the SL suffix if you have a student loan.
  3. 3. Give it to your employer — not to IRD. Payroll applies the new code from the next pay run.
  4. 4. Check your payslip — confirm the code shown matches, then compare the deductions against the PAYE calculator or the after-tax pay calculator.

If the extra job is the reason you are here, the secondary tax calculator shows the dollar difference between codes, and the student loan repayment calculator shows what the SL suffix costs you each pay day.

Tax code questions, answered

What is a tax code in New Zealand?

A tax code tells your employer how much PAYE, ACC earner levy and student loan to deduct from each pay. You declare it on an IR330 Tax code declaration when you start a job, or whenever your situation changes. The code is not a tax rate itself — it selects which set of rates and deductions your payroll applies.

Which tax code should I use?

For most people the answer is M on their main job, or M SL if they have a student loan. Use ME (or ME SL) only if you qualify for the independent earner tax credit. Any additional job uses a secondary code — SB, S, SH, ST or SA — chosen by your total income from all sources.

What is the difference between M and ME?

Both are main-job codes. ME adds the independent earner tax credit, worth up to $10 a week, which is available if your annual income is between $24,000 and $70,000 and you do not receive Working for Families tax credits, an income-tested benefit, NZ Super or a foreign equivalent. If you are unsure, M is the safe choice — IRD squares it up at year end.

What happens if I use the wrong tax code?

You are not fined, but you will either under-pay or over-pay through the year. Under-paying leaves you with a bill in your end-of-year assessment; over-paying means IRD refunds you after 31 March. Either way you can hand your employer a new IR330 at any time and the next pay uses the corrected code.

Why is my second job taxed so much?

Secondary codes apply one flat rate that assumes your main job already used up the lower brackets. It is not a penalty rate — it is an attempt to hit your true marginal rate in one step. If your total income sits near a bracket edge, the flat rate can over-collect, which is why some people end up with a refund.

Do I add SL to my tax code?

Yes, if you have a New Zealand student loan and you are living in New Zealand. Add SL to your main-job code (M SL or ME SL) so 12% of earnings above the pay-period threshold is deducted. Secondary jobs can also carry SL where your main job is below the annual repayment threshold.

What is the ND tax code and why is my pay so low?

ND is the no-notification rate applied when your employer has no valid IR330 on file. It deducts a flat 45% plus the ACC levy. Submit an IR330 immediately — your employer must switch you to the correct code, and any over-deduction is refunded by IRD after the tax year ends.

Can I change my tax code mid-year?

Yes. Give your employer a new IR330 whenever your circumstances change — you start or repay a student loan, your second job becomes your main job, or your income moves in or out of the IETC range. The change takes effect from the next pay run, not retrospectively.

Work out your take-home pay

Related NZ pay and tax calculators

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