NZ Tax Code ME
Primary-job code with the Independent Earner Tax Credit (2025-26).
Take-home on ME — 2025-26 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 | $501 | $25,861 | 13.8% |
| $48,000 | $6,788 | $802 | $40,410 | 15.8% |
| $66,000 | $11,501 | $1,102 | $53,397 | 19.1% |
| $70,000 | $13,221 | $1,169 | $55,611 | 20.6% |
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?
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 you do NOT receive Working for Families, NZ Super, a main benefit, or an overseas-equivalent pension. ME automatically applies the $520/year Independent Earner Tax Credit through your PAYE.
When to switch from ME
- M Your income will exceed $70,000, or you no longer meet the IETC rules (e.g. started receiving a benefit).
- ME SL You have an NZ student loan — adds 12% SL deduction above the threshold.
- M You receive WfF, NZ Super, a main benefit, a student allowance, or an overseas pension — those make you ineligible for IETC.
Common mistakes with ME
- ⚠The full $520 credit applies for annual income $24,000–$48,000. Above $48,000 the credit abates 13 cents per dollar, reaching $0 at $70,001 (Budget 2024 thresholds, effective from 31 July 2024; 2025-26 uses the full-year new limits).
- ⚠If you receive a Work and Income benefit, NZ Super, a Student Allowance, or a foreign-equivalent pension at any point in the year, you are NOT eligible for IETC and must use M instead — even during the period you are not receiving it. Switching codes mid-year is common.
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
How much does ME save compared to M?
Up to $520 per year (tax credit). The benefit is automatic via PAYE — you do not need to claim it at year-end. The saving is $0 below $24,000 or above $70,000, and is tapered between $48,000 and $70,000.
Can I use ME if I'm also on NZ Super?
No. NZ Super makes you ineligible for IETC. You should use M on your employment income. NZ Super itself is paid under a separate tax code (M or M SL depending on student-loan status).