Student Loan Repayment on $40,000 Income (NZ)
12% on income above $24,128 · 2026-27 & 2025-26
Per year
$1,905
Per month
$159
Per fortnight
$73
Per week
$37
How the repayment is calculated
| Annual income | $40,000 |
| Repayment threshold | $24,128 |
| Income above threshold | $15,872 |
| Rate | 12% |
| Annual repayment | $1,905 |
What this means at $40,000
Of your $40,000 gross income, $15,872 sits above the $24,128 threshold. At 12%, that produces $1,905 of repayment per year — roughly 4.8% of your total income.
This runs in parallel with your regular PAYE and ACC earner's levy. On a $40,000 salary your total deduction stack (at a main tax code M SL) is PAYE + 1.75% ACC + 12% student loan above threshold — before any KiwiSaver.
2025-26 vs 2026-27
The repayment threshold is frozen at $24,128 across both 2025-26 and 2026-27 per Treasury's Budget 2025 student loan paper — no CPI indexation until further legislative review. The 12% rate is unchanged since the Student Loan Scheme Act 2011. On $40,000 your annual repayment is therefore the same in both years: $1,905.
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