NZ Tax Code Checker
Answer a few questions to find the correct PAYE tax code for your employment situation.
Key Takeaway
Using the wrong tax code means you’ll either overpay or underpay PAYE during the year. IRD adjusts at year-end, but the right code avoids surprises.
Key Facts
Primary Codes
M, ME, M SL, ME SL
Secondary Codes
SB, S, SH, ST, SA
Student Loan
Adds SL suffix
IETC Range
$24k – $70k
Is this your main job or a second job?
About NZ Tax Codes
Every employee in New Zealand must have a tax code that tells their employer how much PAYE to deduct from each pay. The code you use depends on whether the job is your primary or secondary employment, whether you have a student loan, and your expected annual income.
For your main job, the standard code is M. If your income falls between $24,000 and $70,000 and you don’t receive a government benefit, you may be eligible for the Independent Earner Tax Credit (IETC), which adds an E to your code (ME). A student loan adds an SL suffix (M SL or ME SL).
For secondary jobs, the code depends on your total income from all jobs. Secondary codes (SB, S, SH, ST, SA) apply flat withholding rates at increasing percentages as your total income rises. This ensures the correct amount of PAYE is deducted across all your employment.
If you are a contractor receiving schedular payments, you use the WT code. The withholding rate is agreed between you and the payer.
NZ Tax Code Reference
All PAYE tax codes and their meanings.
| Code | Description | Withholding |
|---|---|---|
| M | Primary employment — standard PAYE | Progressive rates (10.5%–39%) |
| ME | Primary employment + IETC | Progressive rates with IETC ($520/yr credit) |
| M SL | Primary employment + student loan | Progressive rates + 12% student loan above $24,128 |
| ME SL | Primary employment + student loan + IETC | Progressive rates + student loan + IETC |
| SB | Secondary — total income $0–$15,600 | Flat 10.5% |
| S | Secondary — total income $15,601–$53,500 | Flat 17.5% |
| SH | Secondary — total income $53,501–$78,100 | Flat 30% |
| ST | Secondary — total income $78,101–$180,000 | Flat 33% |
| SA | Secondary — total income over $180,000 | Flat 39% |
| SB SL | Secondary + student loan — income $0–$15,600 | 10.5% + 12% student loan |
| S SL | Secondary + student loan — income $15,601–$53,500 | 17.5% + 12% student loan |
| SH SL | Secondary + student loan — income $53,501–$78,100 | 30% + 12% student loan |
| ST SL | Secondary + student loan — income $78,101–$180,000 | 33% + 12% student loan |
| SA SL | Secondary + student loan — income over $180,000 | 39% + 12% student loan |
| WT | Withholding tax for schedular payments (contractors) | Agreed rate with payer |
Frequently Asked Questions
What is a tax code?
A tax code tells your employer how much PAYE (Pay As You Earn) income tax to deduct from your wages. The code reflects your employment situation — whether the job is your primary or secondary employment, whether you have a student loan, and your expected annual income.
How do I change my tax code?
Fill in an IR330 Tax code declaration form and give it to your employer. You can download the form from the IRD website or ask your employer for a copy. Your employer will adjust your PAYE deductions from the next pay period.
What happens if I use the wrong tax code?
If you use the wrong tax code, you will either overpay or underpay PAYE during the year. IRD performs an automatic income tax assessment after 31 March each year. If you overpaid, you will receive a refund. If you underpaid, you will owe tax. Using the correct code avoids these year-end surprises.
What is the Independent Earner Tax Credit (IETC)?
The IETC is a tax credit of up to $520 per year for individuals earning between $24,000 and $70,000 who do not receive a government benefit or Working for Families tax credits. If eligible, your tax code will include an 'E' suffix (e.g. ME or ME SL) so the credit is applied through your PAYE.
What is a schedular payment?
Schedular payments are payments made to contractors for specific types of work listed in the Income Tax Act, such as labour-only building work, sales commissions, or freelance work. These payments use the WT tax code and the withholding rate is agreed between the contractor and the payer.
Do I need a different tax code for each job?
Yes. You can only use a primary tax code (M, ME, M SL, ME SL) for one job — your main source of employment income. All other jobs must use a secondary tax code (SB, S, SH, ST, SA, or their student loan variants). Using a primary code for more than one job will result in underpaid tax.
Sources
Related Calculators
Last updated April 2026. Tax codes sourced from IRD.