Tax Code
A tax code is a code you provide to your employer (on an IR330 form) that determines how PAYE is calculated on your pay. Getting the right tax code is important — the wrong code can mean you over-pay or under-pay tax throughout the year.
Common tax codes include: M (main or only job), ME (main job, eligible for IETC), M SL (main job with student loan), S (secondary job), SH (secondary job, income over $53,501), ST (secondary job, income over $78,101), and SB (secondary job, income under $15,600). If you have a student loan, add 'SL' to your code.
If you don't provide a tax code, your employer must use the non-notification rate, which deducts tax at the highest rate. You can check which code is right for you using IRD's online tax code finder, or update your code through myIR at any time.
Related Terms
PAYE
PAYE (Pay As You Earn) is the system that New Zealand employers use to deduct income tax from employees' wages and salaries.
IRD
Inland Revenue Department (IRD), commonly known as Inland Revenue or simply IRD, is the New Zealand government agency responsible for collecting taxes, distributing social support payments, and enforcing tax compliance.
No-Notification Rate
If you start a new job without providing a completed IR330 tax code declaration form, your employer is legally required to apply the no-notification rate — the highest applicable withholding rate — to your pay.
Secondary Tax
If you have more than one job or income source, your secondary employer deducts tax using a secondary tax code.
Try the calculator
Use our free tool to see how tax code affects your tax.