Primary-job code with the Independent Earner Tax Credit (2026-27).
Take-home on ME — 2026-27 IRD rates
Annual deductions for someone paid on code ME. 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
$30,000
$3,638
$525
$25,837
13.9%
$66,000
$11,501
$1,155
$53,345
19.2%
$68,000
$12,361
$1,190
$54,450
19.9%
$70,000
$13,221
$1,225
$55,555
20.6%
Source: IRD published 2026-27 tax brackets, ACC earner's levy 1.75%, student-loan rate 12% over $24,128. See full PAYE calculator for any income and pay period.
Who should use ME?
Use ME when this is your main job, your annual income is between $24,000 and $70,000, you do NOT have a student loan, and neither you nor your partner receives Working for Families, you do NOT receive NZ Super, a Veteran's Pension, a main benefit or an overseas equivalent, and you are an NZ tax resident. ME automatically applies the $520/year Independent Earner Tax Credit through your PAYE.
When to switch from ME
MYour income will exceed $70,000, or you no longer meet the IETC rules (e.g. started receiving a benefit).
ME SLYou have an NZ student loan — adds 12% SL deduction above the threshold.
MYou receive WfF, NZ Super, a Veteran's Pension, a main benefit, or an overseas equivalent — those make you ineligible for IETC. A Student Allowance does not.
Common mistakes with ME
⚠The full $520 credit applies for annual income $24,000–$66,000. Above $66,000 the credit abates 13 cents per dollar, reaching $0 at $70,000 (Budget 2024 thresholds, effective 31 July 2024; the abatement start point moved from $44,000 to $66,000 and the top threshold from $48,000 to $70,000 — 2025-26 and 2026-27 use the full-year new limits).
⚠IETC is worked out on WHOLE MONTHS (Income Tax Act 2007 s LC 13(2) and (6) prorate the credit by "credit period months ÷ 12"). Receiving a main benefit, NZ Super, a Veteran's Pension or Working for Families at any time in a month costs you that month's credit only, not the whole year's — so switching between M and ME mid-year is normal. A Student Allowance is not a main benefit under the Social Security Act 2018 and does not make you ineligible.
Up to $520 per year (tax credit), paid through your PAYE as you go. On M you still get the same credit: IRD works it out in your year-end assessment. The credit is $0 below $24,000 or above $70,000, and is tapered between $66,000 and $70,000.
Can I use ME if I'm also on NZ Super?
No. NZ Super makes you ineligible for IETC. If NZ Super is your main (highest) income, your job needs a secondary code (SB, S, SH, ST or SA); use M on the job only if it is your highest income source.
