NZ Tax Code M SL
Primary-job code with student loan, no IETC (2025-26).
Take-home on M SL — 2025-26 IRD rates
Annual deductions for someone paid on code M SL. Numbers below include income tax, ACC earner's levy, and student loan (where applicable). KiwiSaver is not included — add your chosen rate on top.
| Annual gross | Income tax (PAYE) | ACC levy | Student loan | Take-home | Effective rate |
|---|---|---|---|---|---|
| $40,000 | $5,908 | $668 | $1,905 | $31,519 | 21.2% |
| $70,000 | $13,221 | $1,169 | $5,505 | $50,106 | 28.4% |
| $100,000 | $22,878 | $1,670 | $9,105 | $66,348 | 33.7% |
| $150,000 | $39,378 | $2,505 | $15,105 | $93,013 | 38.0% |
Source: IRD published 2025-26 tax brackets (effective from 31 Jul 2024 full year), ACC earner's levy 1.67%, student-loan rate 12% over $24,128. See full PAYE calculator for any income and pay period.
Who should use M SL?
Use M SL when this is your main job, you have an NZ government student loan, and your annual income is either under $24,000 or over $70,000 (so IETC does not apply). Your employer deducts progressive income tax plus 12% student-loan repayment on the portion above the weekly / fortnightly threshold.
When to switch from M SL
- ME SL Your annual income is $24,000–$70,000 — switch to pick up the IETC.
- M You pay off the student loan or IRD switches you to "finalised" status.
- SL This is a legacy format for secondary-job SL codes (SB SL / S SL / etc). Do not use for primary employment.
Common mistakes with M SL
- ⚠Student-loan threshold is $24,128/year ($464/week / $928/fortnight) for 2025-26. On M SL the 12% only applies to the portion above this threshold.
- ⚠Unlike income tax, student-loan deductions on a primary code do NOT average across the year — they are taken from each pay based on the weekly / fortnightly threshold. Short hours in one week reduce SL that week but do not refund prior-week over-deductions automatically.
Unsure this is the right code? Use our tax-code checker wizard (5 questions), or jump to the full PAYE calculator for any income and pay period.
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Frequently asked questions
Does M SL deduct 12% from my first dollar?
No — on a primary code (M SL / ME SL), the 12% only applies to income above the $24,128 annual threshold ($464 per week or $928 per fortnight for 2025-26). Secondary SL codes (S SL, SH SL, etc) do deduct 12% from the first dollar on that job.
I paid off my loan. Can I switch back to M?
Wait for IRD to confirm your loan balance is $0 and issue a letter. Employers are required to deduct SL until IRD tells them to stop. Switching prematurely can cause under-deduction penalties.