NZ Tax Code M
Primary-job code with no student loan and no IETC (2025-26).
Take-home on M — 2025-26 IRD rates
Annual deductions for someone paid on code M. 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 | Take-home | Effective rate |
|---|---|---|---|---|
| $40,000 | $5,908 | $668 | $33,424 | 16.4% |
| $70,000 | $13,221 | $1,169 | $55,611 | 20.6% |
| $100,000 | $22,878 | $1,670 | $75,453 | 24.6% |
| $150,000 | $39,378 | $2,505 | $108,118 | 27.9% |
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?
Use M when this is your main job (the one that pays most), you do NOT have a student loan, and your annual income is either under $24,000 or over $70,000 (so IETC does not apply). Progressive rates apply from the first dollar.
When to switch from M
- ME You earn between $24,000 and $70,000 — switch to ME to claim the $520/year Independent Earner Tax Credit.
- M SL You have an NZ government student loan — your employer must deduct 12% over the weekly/fortnightly threshold.
Common mistakes with M
- ⚠M is the default primary-job code but often wrong: if you earn $24k–$70k, ME saves you up to $520/year automatically via PAYE.
- ⚠If this is actually your second job (not your biggest), using M here will under-tax and you may owe money at year-end.
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
Is M the default NZ tax code?
Yes for new employees without a student loan, but it is not always the right one. Use ME if your annual income is $24,000–$70,000 to automatically receive the Independent Earner Tax Credit (up to $520/year).
What if I have two jobs and both use M?
Only your highest-paid job should use M (or ME). The second job must use a secondary code (SB/S/SH/ST/SA) based on your combined annual income. Using M on both jobs will under-tax you.