NZ Tax Codes Explained
A tax code tells your employer how much tax to take from your pay. Use M for your main job (or M SL if you have a student loan). Use a secondary code (SB, S, SH, ST or SA) for every other job, chosen by your total yearly income from all jobs. Add SL to any code if you have a student loan. Use ME instead of M only if you qualify for the independent earner tax credit.
What is a tax code?
A tax code is a short code you give each employer on an IR330 form. It tells payroll which tax rates to use for you. The right code means the right amount of tax comes out of every pay. The wrong code can leave you with a tax bill at the end of the year, or with less money in your pocket than you should have.
Find Your NZ Tax Code in 30 Seconds
Answer a couple of quick questions and we will show you the tax code to give your employer.
Do you have a student loan?
Your main job, with no student loan repayments.
What is your total yearly income from all your jobs?
Do you have a student loan?
A secondary code is picked from your total income from all jobs, not just this one.
| Total yearly income from all jobs | Your secondary code | Tax rate on this job |
|---|---|---|
| $0 – $15,600 | SB | 10.5% |
| $15,601 – $53,500 | S | 17.5% |
| $53,501 – $78,100 | SH | 30% |
| $78,101 – $180,000 | ST | 33% |
| Over $180,000 | SA | 39% |
Not sure? Check your payslip or ask your employer. This quiz is general information for the 2026/27 tax year and is not tax advice. Confirm your tax code with Inland Revenue (ird.govt.nz).
Which tax code do I use?
|
Your situation |
Code |
|---|---|
|
One job, no student loan |
M |
|
One job, with a student loan |
M SL |
|
One job, you qualify for the independent earner tax credit |
ME |
|
ME and a student loan |
ME SL |
|
Second job (not your highest paying), no student loan |
SB, S, SH, ST or SA, by total income |
|
Second job, with a student loan |
The same code with SL on the end, for example SH SL |
Main job tax codes
- M: your main or highest source of income.
- M SL: the same, with student loan repayments taken out.
- ME: main income when you also qualify for the independent earner tax credit (IETC). It is generally for people with income in a middle range who do not receive certain benefits, Working for Families or NZ Super. Check the eligibility rules on ird.govt.nz before choosing ME.
- ME SL: ME with a student loan.
Only one job can use M or ME. Every other job must use a secondary code.
Secondary tax codes
A secondary code is flat. It is picked using your total estimated income from all jobs for the year, not just the second job.
|
Code |
Total yearly income from all sources |
Tax rate on the secondary income |
|---|---|---|
|
SB |
$0 – $15,600 |
10.5% |
|
S |
$15,601 – $53,500 |
17.5% |
|
SH |
$53,501 – $78,100 |
30% |
|
ST |
$78,101 – $180,000 |
33% |
|
SA |
Over $180,000 |
39% |
The codes line up with the income tax brackets. See our NZ Tax Brackets guide.
Example
You earn $50,000 from your main job and $15,000 from a weekend job. Total income is $65,000, which falls in the $53,501 – $78,100 range, so the weekend job should use SH (30%). If you used M for the weekend job as well, too little tax would be taken out and you would likely face a bill.
Student loan codes (SL)
Add SL to the end of your code if you have a student loan: M SL, ME SL, SB SL, S SL, SH SL, ST SL, SA SL. On a main job, repayments are 12% of pay above the student loan threshold. On a secondary job with an SL code, repayments are taken from all of the pay from that job. See our Student Loans guide.
Other codes you might see
- CAE: casual agricultural employees.
- EDW: election day workers.
- NSW: non-resident seasonal workers.
- WT: withholding tax on schedular payments, such as some contractors.
- STC: special tax code, only with a certificate from IRD.
What happens if you do not give a tax code?
If your employer does not have a tax code for you, they must use a much higher default rate (currently 45%). Give them your code and IRD number as soon as you start.
Common mistakes
- Using M for a second job.
- Forgetting SL after getting a student loan, or keeping SL after it is paid off.
- Not changing your secondary code after a big pay rise or a second job ends.
- Using ME without checking you qualify.
How to change your tax code
- Fill in a new tax code declaration (IR330) for your employer, or use IRD’s online form in myIR.
- Give it to your employer or payroll.
- Check your next payslip shows the new code.
- If you only found out late, ask IRD whether a correction is needed.
Frequently asked questions
Related calculators and guides
Disclaimer
This guide is general information for the 2026/27 tax year and is not tax advice. Confirm your situation with Inland Revenue (ird.govt.nz) or a tax professional.