NZ Tax Codes Explained 2025-26 & 2026-27: M, ME, M SL, SB, S, SH, ST, SA List
A complete New Zealand tax codes list for 2025-26 and 2026-27 — what M, ME, M SL, SB, S, SH, ST, SA and WT mean, which one to use, and how to update your tax code with your employer.
Published 2 March 2026 · Reviewed by NZTaxTools editorial review
Your tax code tells your employer how much PAYE to deduct from your pay. Using the wrong tax code can result in too much or too little tax being withheld — leading to a surprise bill or an unnecessary wait for a refund. Here’s what each code means.
Primary Employment Codes
These codes are for your main job (the one where you earn the most):
| Code | Meaning |
|---|---|
| M | Standard primary employment code |
| ME | Primary employment + IETC (Independent Earner Tax Credit) |
| M SL | Primary employment + student loan |
| ME SL | Primary employment + student loan + IETC |
M is the most common code. If your annual income is between $24,000 and $70,000 and you don’t receive Working for Families or a main benefit, use ME to get the IETC applied automatically.
IRD writes the student-loan codes with a space (e.g. M SL, ME SL) on the IR330 form. Some older payslips and systems use the concatenated form (ML, MLE) — they mean the same thing.
Secondary Employment Codes
If you have a second job (or more), use one of these codes for the additional employment:
| Code | Income range it suits |
|---|---|
| SB | If total annual income is $15,600 or less |
| S | If total annual income is $15,601–$53,500 |
| SH | If total annual income is $53,501–$78,100 |
| ST | If total annual income is $78,101–$180,000 |
| SA | If total annual income is over $180,000 |
Secondary codes apply a flat withholding rate based on your expected total income across all jobs. This ensures enough tax is withheld overall.
| Code | Tax rate |
|---|---|
| SB | 10.5% |
| S | 17.5% |
| SH | 30% |
| ST | 33% |
| SA | 39% |
Student Loan Codes
If you have a student loan, your tax code must reflect this so loan repayments are deducted:
- Add SL to your primary code (e.g., M becomes M SL, ME becomes ME SL)
- For secondary employment with a student loan, add SL to the secondary tier — SB SL, S SL, SH SL, ST SL, or SA SL
The student loan deduction rate for NZ-based borrowers is 12% of income above the repayment threshold ($24,128 for 2025-26).
Special Codes
| Code | Use |
|---|---|
| NSW | No student loan deduction for secondary work (if your primary job covers the threshold) |
| CAE | Casual agricultural employee |
| EDW | Election day worker |
| WT | Withholding tax for schedular payments |
How to Choose the Right Code
- One job, no student loan: Use M (or ME if income is $24,000–$70,000)
- One job, with student loan: Use M SL (or ME SL for IETC)
- Two jobs, no student loan: Use M for main job, then SB/S/SH/ST/SA for the secondary job based on your total income
- Two jobs, with student loan: Use M SL for main job, then SB SL / S SL / SH SL / ST SL / SA SL for the secondary job
How to Update Your Tax Code
Complete an IR330 form (Tax code declaration) and give it to your employer. You can:
- Download the form from the IRD website
- Complete it through myIR
- Ask your employer for a copy
Your employer must apply the new tax code from the next pay period after receiving the form.
Common Mistakes
- Using M for a second job: This undertaxes your secondary income, leading to a year-end bill
- Not adding the student loan indicator: You’ll miss compulsory repayments and may owe a lump sum
- Forgetting to update after a pay rise: If your income crosses a threshold, your secondary code may need to change
Related Tools
- Take-Home Pay Calculator — See how your tax code affects your take-home pay
- Income Tax Calculator — Full PAYE breakdown by bracket
Sources
Primary sources