Free Secondary Income Tax Calculator for New Zealanders
When you have more than one source of PAYE income, the second one is taxed using a secondary code (SB, S, SH, ST, or SA), set by the bracket your COMBINED income lands in.
Your secondary job
Based on $15,000 secondary income on the S code.
About our Secondary Income Tax Calculator
The secondary tax codeTax codeTwo-or-three-letter PAYE code (M, ME, S, SH, ST, etc.) that sets the tax taken each pay.View in glossary → most people end up on by default is the wrong one. Bank-and-payroll defaults send a high-earner with a small second job to S (17.5%) and a low-earner to ST (33%), and both end up paying or receiving back a meaningful adjustment at year-end. The right code is the one that matches the bracket your combined income lands in, and the difference is sometimes hundreds or thousands of dollars during the year.
The five secondary codes match the five income-tax brackets. SB at 10.5%S tax codeSecondary income tax code; flat 17.5% if total earnings stay in the second-bracket band.View in glossary →, S at 17.5%, SH at 30%SH tax codeSecondary tax code at 30% for people whose combined income lands in the fourth bracket.View in glossary →, ST at 33%ST tax codeSecondary tax code at 33% for people whose combined income lands in the fifth bracket.View in glossary →, SA at 39%. Pick the code by adding up your combined annual income across all PAYE jobs, then choosing the bracket that combined figure sits in.
The calculator computes the PAYE coming off your secondary income at the chosen code. Move the income slider to see how the deduction scales. Toggle between codes to see the difference between picking the right one and the default ST that most secondary-job employers default to.
How to use it
Enter the annual gross income from your secondary job (the slider works for a quick scan). Pick the secondary code that matches the bracket your combined income (main + secondary) lands in.
If you are unsure of the right code, work out your combined gross income first. SB if under $15,600, S up to $53,500, SH up to $78,100, ST up to $180,000, SA above $180,000.
The result panel returns the secondary PAYE deducted, the implied tax rate, and the net pay from the secondary job. ACC is calculated separately on take-home-pay calculators; the secondary-tax view shows income tax only.
Why use it
The secondary-tax conversation is one of the most-misunderstood parts of NZ pay. The flat-rate structure looks unusual to people who are used to bracketed PAYE, and the "secondary tax is high tax" myth has stuck around because most secondary-job employers default to the highest code (ST or SA) just to be safe.
The calculator settles the question with the actual numbers. A $14,000 weekend retail job for someone earning $58,000 in their main job lands them in the 30% bracket. The right code is SH at 30%. ST at 33% would over-tax the $14,000 by $420 a year, and that money sits with IRD until the year-end auto-assessment refunds it.
For people with three or more PAYE income sources (common in part-time and gig work), the same logic applies; every source after the main one uses a secondary code, with the rate set by where the running combined income lands.
The maths behind it
Net secondary pay = Secondary income × (1 − secondary code rate) Secondary tax codes apply a flat rate to the secondary income, with the rate matching the income-tax bracket your COMBINED total income falls into. SB applies if combined income stays in the 10.5% bracket. S for the 17.5% bracket. SH for the 30% bracket. ST for the 33% bracket. SA for the 39% bracket. The bank or payroll office of the secondary job applies the rate at source; no further PAYE maths is needed for that income source.
Worked example
Daria, primary teacher in Te Awamutu, with a $58,000 weekday job and a $14,000 weekend retail role.
Daria’s main income is $58,000 on the M code. Her weekend retail role pays $14,000 a year, taking combined income to $72,000.
$72,000 sits in the 30% tax bracket (above $53,500, below $78,100), so the right secondary code is SH (30%). The retail employer applies 30% to every dollar of her secondary income.
Tax on the $14,000 at the SH code: $4,200. Net secondary pay: $9,800. ACC adds another 1.75% on the $14,000, or about $245.
If Daria had let the retail employer use the default ST code (33%), she would pay $420 too much PAYE through the year and get the difference back in her year-end square-up. Picking the right code up front avoids the round trip.
Things to keep in mind
- The "right" code matches combined income. Pick the code by working out your combined gross income across all jobs, then matching the bracket. SB is for combined income up to $15,600. S is up to $53,500. SH is up to $78,100. ST is up to $180,000. SA is above $180,000.
- Wrong code triggers a square-up. Using a code that’s too high (e.g., ST when SH is correct) means overpaying through the year and getting a refund at year-end. Too low means underpaying and owing the difference. Either way, IRD reconciles at year-end automatically; the cash-flow effect is the only practical difference.
- Student loan adds an SL suffix. If you have a student loan, append SL to the secondary code (S SL, SH SL, etc.). The SL deduction is 12% of every dollar of secondary income above the secondary-income SL threshold (pro-rated weekly or fortnightly).
- KiwiSaver applies if elected. KiwiSaver deductions can apply to a secondary job if you have opted in. Each employer takes the contribution from their pay run, separately. The combined contribution can exceed the minimum 3.5% if you contribute on both jobs, which boosts your retirement balance but reduces take-home from each pay run.
- Independent Earner Tax Credit. IETCIETCIndependent Earner Tax Credit; small annual credit for low-to-mid earners with no Working for Families.View in glossary → is only available on the M tax code with the ME variant, and only if combined income stays in the IETC eligibility band ($24,000-$48,000 with phaseout to $70,000). Secondary income tax codes do not include the IETC.
NZ-specific notes
FAQs
Which secondary code should I use?
Add up your combined gross income across all jobs and pick the code that matches the bracket your combined total lands in: SB if under $15,600, S up to $53,500, SH up to $78,100, ST up to $180,000, SA above $180,000. The IRD’s online tax-code finder walks through this.
Why did my last secondary job take so much tax?
Most likely the employer used ST (33%) or SA (39%) by default, even though your combined income sat in a lower bracket. The simplest fix is to submit a new IR330 with the correct code on the next pay run. Tax already overpaid comes back in the year-end auto-assessment.
Does the calculator include ACC?
No, the secondary-tax calculator shows secondary-tax PAYE only. The ACC earner levy still applies to secondary income (1.75% in 2026/27, capped at $156,641 of total liable earnings). The take-home pay calculator combines all four standard deductions.
What if my main job is below the IETC threshold?
If your main job pays under $48,000 and you would normally qualify for the Independent Earner Tax Credit (ME code), adding a secondary job can push you out of the IETC eligibility band. The IETC fully phases out by $70,000 of combined annual income.
Does the wrong code cost me money?
Not in the long run. IRD’s auto-assessment at year-end reconciles whatever was deducted against what you actually owe. Wrong-code situations only affect cash flow during the year. Picking the right code keeps each pay run accurate and avoids surprises at year-end.
Are bonuses on a secondary job taxed differently?
Bonuses on either main or secondary jobs use the lump-sum method, taxed at the rate of the bracket your annualised income (including the bonus) sits in. The secondary-code rate does not apply to one-off lump-sum payments.
Can I use the M code on more than one job?
No. The M code applies to your main job only (the one with the higher or more regular income). Every other PAYE-deducted income source uses a secondary code. Using M on two jobs underpays tax during the year, with the shortfall caught up at year-end.
References & sources
- Inland Revenue, "Tax codes for individuals (IR330 list)". ird.govt.nz
- Inland Revenue, "Working out an employee’s tax code". ird.govt.nz
- Inland Revenue, "Tax rates for individuals (2026/27 brackets)". ird.govt.nz
- Inland Revenue, "End of the tax year (auto-assessment)". ird.govt.nz