NZ Tax Code ME SL
Primary job with IETC and student loan (2025-26).
Take-home on ME SL — 2025-26 IRD rates
Annual deductions for someone paid on code ME 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 |
|---|---|---|---|---|---|
| $30,000 | $3,638 | $501 | $705 | $25,156 | 16.2% |
| $48,000 | $6,788 | $802 | $2,865 | $37,546 | 21.8% |
| $60,000 | $9,701 | $1,002 | $4,305 | $44,993 | 25.0% |
| $70,000 | $13,221 | $1,169 | $5,505 | $50,106 | 28.4% |
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 ME SL?
Use ME SL when this is your main job, your annual income is between $24,000 and $70,000, you have an NZ student loan, and you are NOT on a main benefit / NZ Super / WfF / Student Allowance. Combines progressive income tax, the $520 IETC credit, and 12% SL deduction above the weekly / fortnightly threshold.
When to switch from ME SL
- M SL Income rises above $70,000 or you become ineligible for IETC.
- ME You finish paying the student loan.
Common mistakes with ME SL
- ⚠Two thresholds matter: IETC abates from $48,001 and disappears at $70,001; SL starts deducting above $24,128. Between $48k and $70k, every extra dollar of pay reduces your IETC by 13 cents AND adds 12 cents of SL on top of your marginal tax — effectively a 55c-in-the-dollar block at the 30% rate.
- ⚠If you stop using ME SL mid-year (e.g. you start receiving a benefit), you may receive a year-end over- or under-payment. Use the IR3 wash-up tool after 31 March.
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
What's the effective marginal rate on ME SL between $48k and $70k?
At the 30% income-tax bracket: 30% tax + 13% IETC abatement + 12% student loan ≈ 55% on each extra dollar in the abatement window. This is the highest compound marginal rate in the NZ PAYE system.
Does IETC apply to the student-loan portion?
No. IETC is a direct credit against income tax only. It does not reduce your 12% SL deduction.