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Secondary employment + student loan

NZ Tax Code SB SL

Secondary job + student loan (combined income ≤ $15,600) (2025-26).

Take-home on SB SL — 2025-26 IRD rates

Annual deductions for someone paid on code SB 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
$5,000 $525 $84 $600 $3,792 24.2%
$10,000 $1,050 $167 $1,200 $7,583 24.2%
$15,000 $1,575 $251 $1,800 $11,375 24.2%

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 SB SL?

Use SB SL on your non-main job when your TOTAL annual income from all jobs is $15,600 or less AND you have an NZ student loan. Deductions: 10.5% income tax + 12% student-loan repayment from the first dollar on this job. Total deduction on this job: 22.5% from $1.

When to switch from SB SL

  • S SL Combined income is $15,601–$53,500.
  • SB Student loan is paid off.

Common mistakes with SB SL

  • Unlike the primary SL codes (M SL / ME SL), secondary SL codes deduct 12% from the FIRST dollar earned on that job — there is no per-pay threshold.
  • If your combined income is only ~$15k, you will overpay on the secondary job — IRD refunds the excess SL at the end of the tax year if you file an IR3 or get an auto-assessment.

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

Why does my SL come out at 12% from $1 on my second job?

Because you get only ONE student-loan threshold per year, and it is applied to your primary job. Secondary jobs deduct 12% from the first dollar to avoid under-collection across multiple employers.

Can I request an SL repayment deduction rate reduction?

Yes. If you can prove you will over-repay, you can apply to IRD for a "Special Deduction Rate" (SDR) under section 37 of the Student Loan Scheme Act. Approval is granted case-by-case.

Last updated 1 May 2026Tax year 2025-26

Data sources: Inland Revenue (ird.govt.nz)

This tool is general information only, not financial advice.

Reviewed by NZ Tax Tools Editorial Desk

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