NZ Tax Code ME
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 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 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.
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 $66,000 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).