NZ Secondary Tax Calculator
Two jobs? See your real take-home and avoid the year-end IRD bill. Compares PAYE withheld through your secondary code against actual progressive tax owed on combined income.
Student loan + IETC + tax year
Adds SL on both jobs and reconciles withheld vs required at year-end.
No main benefit, NZ Super, or Student Allowance this year. Applies up to $520 credit if combined income $24k–$70k.
How NZ secondary tax works
In New Zealand, only your primary job uses the progressive PAYE brackets (10.5% – 39%). Every other job — your second job, casual work, or any extra employment — uses a secondary tax code: a flat rate that withholds tax consistently with the marginal bracket your combined annual income falls into.
The right secondary code keeps your withheld tax close to what you actually owe at year-end. The wrong code means a balance owing (under-withheld) or a refund (over-withheld) on your IRD assessment after 31 March.
If you have a student loan, add the SL suffix to either or both codes. Student loan repayments on the primary job apply only above the $24,128 threshold; on a secondary job, SL withholds at 12% from the first dollar.
NZ secondary tax codes (2025-26 & 2026-27)
Pick the code where your combined annual income (primary + secondary) falls.
| Code | Combined income range | Flat rate on secondary |
|---|---|---|
| SB | $0 – $15,600 | 10.5% |
| S | $15,601 – $53,500 | 17.5% |
| SH | $53,501 – $78,100 | 30% |
| ST | $78,101 – $180,000 | 33% |
| SA | Over $180,000 | 39% |
Add SL suffix if you have a student loan: SB SL, S SL, SH SL, ST SL, SA SL.
Frequently asked questions
How does secondary tax work in NZ?
PAYE on your primary job uses the progressive brackets (10.5% – 39%). PAYE on a second job uses a flat secondary rate (SB / S / SH / ST / SA) chosen so that combined income lands roughly on the right marginal bracket. The IRD reconciles at year-end if the secondary code under- or over-withholds.
Why do I owe more tax with a second job?
Because the progressive brackets apply to your TOTAL income, not each job in isolation. A secondary code keeps PAYE withholding consistent with the marginal bracket your combined income falls into — but if the code is too low, you'll have a balance owing at year-end.
Which secondary tax code should I use?
Pick the code that covers the bracket your combined annual income falls into: SB ($0–$15,600), S ($15,601–$53,500), SH ($53,501–$78,100), ST ($78,101–$180,000), SA ($180,001+). Add SL if you have a student loan.
What's the difference between SB, S, SH, ST and SA?
SB withholds at 10.5%, S at 17.5%, SH at 30%, ST at 33%, SA at 39%. The right code keeps your withheld tax close to what you actually owe at year-end given your combined annual income from all jobs.
Will I get a refund or owe at year-end?
If the secondary code matches your combined-income bracket, you should be roughly square. If you're on a code below the right bracket, you'll owe. If you're on a code above, you'll get a refund. Use this calculator to model both before year-end so there are no surprises.
Do I need to file an IR3 if I have two jobs?
Most employees with PAYE-only income don't need to file an IR3. IRD will issue an automatic income tax assessment after 31 March. You'll need to file an IR3 only if you also had self-employed, rental, or other untaxed income — see our IR3 filing checker.
Sources
Last updated April 2026. Brackets and thresholds sourced from IRD.