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Secondary employment + student loan

NZ Tax Code SH SL

Secondary job + student loan (combined $53,501–$78,100) (2025-26).

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

Annual deductions for someone paid on code SH 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
$10,000 $3,000 $167 $1,200 $5,633 43.7%
$20,000 $6,000 $334 $2,400 $11,266 43.7%
$30,000 $9,000 $501 $3,600 $16,899 43.7%

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 SH SL?

Use SH SL on your non-main job when your TOTAL annual income from all jobs is $53,501 to $78,100 AND you have an NZ student loan. Deductions on this job: 30% income tax + 12% SL = 42% from the first dollar.

When to switch from SH SL

  • S SL Combined income drops below $53,501.
  • ST SL Combined income rises above $78,100.
  • SH Student loan is paid off.

Common mistakes with SH SL

  • 42% all-in is the highest effective deduction for most dual-job NZ workers. On a $20k secondary job, about $8,400 goes to IRD immediately.
  • If your primary job straddles the $53,501 threshold, check whether any of your secondary income should be at 33% instead of 30% — request an STC via IR23BS if so.

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

Is 42% the real rate after ACC and KiwiSaver?

No — 42% is income tax + SL only. ACC earner's levy (1.67%, capped) and KiwiSaver (3%/4%/6%/8%/10% optional) are deducted on top. All-in deductions for an ACC-paying, KiwiSaver-3%-contributing SH SL worker can reach ~47%.

Can I stop SL deduction on my secondary job only?

Only via an IRD-approved Special Deduction Rate (SDR). Without one, every SL-coded job deducts 12% from the first dollar on that job.

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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