Free Tax Code Picker for New Zealanders
A quick lookup for the most common NZ tax codes. The right code depends on whether the income is from your main job or a secondary one, plus your total annual income across all sources, plus IETC eligibility and student loan status.
Your situation
For your main job at $48k - $70k with no student loan, the common code is M.
About our Tax Code Picker
NZ tax codesTax codeTwo-or-three-letter PAYE code (M, ME, S, SH, ST, etc.) that sets the tax taken each pay.View in glossary → work in two layers. The main-job code (M or ME, with optional SL suffix) handles your primary PAYE income through the standard bracket-stepped calculation. Every other PAYE income source uses a secondary code (SB, S, SH, ST, or SA), set by the bracket your combined total income lands in.
The picker walks through the four questions: which job is this for (main or secondary)? What is your combined annual income across all jobs? Do you qualify for the Independent Earner Tax Credit? Do you have a student loan?
Picking the right code matters for cash flow during the year. The wrong code does not cost you in the long run (IRD reconciles at year-end), but it can leave you over- or under-paying by hundreds or thousands of dollars during the year.
How to use it
Pick whether the code is for your main job or a secondary job. For the main job, choose ME (or ME SL) if you qualify for IETC, or M (or M SL) otherwise. For a secondary job, pick the bracket your COMBINED gross income across all jobs lands in.
Add SL suffix if you have a student loan. The SL deduction applies on every pay run, at 12% of every dollar above the $24,128 annual threshold (pro-rated weekly or fortnightly).
The result panel returns the code (e.g., "SH SL"), the implied PAYE rate on the secondary income, and the maths the lender or employer will apply.
Why use it
The most common NZ tax-code mistake is on a secondary job, where employers default to ST or SA "to be safe" and the worker overpays for the year. The picker quickly identifies the right secondary code based on combined income, which avoids the overpay-then-refund cycle.
The same picker also handles the IETC decision. People earning between $24,000 and $48,000 with no Working for Families and no benefit get a small annual credit through ME or ME SL. Sticking with M when ME applies leaves the credit unclaimed in PAYE; it eventually arrives as a year-end refund, but using the right code through the year smooths the cash flow.
For workers with three or more PAYE income sources (multiple part-time jobs, gig work alongside a salaried role), the same logic scales: one main code, then a secondary code for each additional source. The combined-income test applies to the running total across all of them.
The maths behind it
Code = f(income source, total annual income, student loan status, IETC eligibility) NZ tax codes split first by income source (main job vs secondary), then by the bracket your combined income falls into. Add the SL suffix if you have a student loan. Use ME or ME SL for the Independent Earner Tax Credit if eligible. Main-job codes: M (standard), ME (with IETC). Secondary-job codes: SB (combined income up to $15,600 → 10.5%), S (up to $53,500 → 17.5%), SH (up to $78,100 → 30%), ST (up to $180,000 → 33%), SA (above $180,000 → 39%). Special-purpose codes: WT (contractor schedular payments), ND (non-declaration default, 45%).
Worked example
Beth, council librarian in Whakatāne, with a $48,000 main job and a $24,000 secondary teaching gig.
Beth’s combined income is $48,000 + $24,000 = $72,000. She has a student loan from her tertiary years, so SL applies on both jobs.
For the main job (the council role), the code is M SL. PAYE on $48,000 follows the standard bracket maths plus 12% of every dollar above $24,128 toward the student loan.
For the secondary teaching gig, $72,000 combined income sits in the 30% bracket (above $53,500, below $78,100). The right secondary code is SH SL. The teaching employer applies a flat 30% PAYE plus 12% student loan to her gross pay from that role.
If Beth had used the default ST SL code on the secondary job (33% PAYE), she would overpay by about $720 a year ($24,000 × 3% extra), with the difference refunded at the year-end auto-assessment.
Things to keep in mind
- Main job vs secondary job. You can only have ONE main-job code (M, M SL, ME, ME SL). Every other PAYE-deducted income source needs a secondary code. The "main" job is usually the higher-income or more regular source; the choice affects how IETC and student loan apply.
- Combined income drives the secondary code. Add up your gross income across all PAYE jobs first, then pick the secondary code that matches the bracket your combined total lands in. Picking by the secondary income alone (e.g., SB for a $14,000 second job) is a common mistake.
- Independent Earner Tax Credit (IETC). IETCIETCIndependent Earner Tax Credit; small annual credit for low-to-mid earners with no Working for Families.View in glossary → adds a small annual credit for low-to-mid earners with no Working for Families. Eligibility is income between $24,000 and $48,000 (full credit), with phase-out to $70,000. Use ME or ME SL on the main job to claim it through PAYE; otherwise IETC arrives as a year-end refund.
- Student loan SL suffix. Append SL to the relevant code if you have a student loan (M SL, ME SL, S SL, SH SL, ST SL, SA SL). The SL deduction applies on top of PAYE, at 12% of every dollar above the $24,128 annual threshold (pro-rated by pay frequency).
- Schedular payments and the WT code. Contractors paid through schedular payments (carpenters, drivers, IT consultants) use the WT code with a chosen rate (10.5% to 39%). The IR330C form sets the rate; the schedular-payments calculator works through the choice.
NZ-specific notes
FAQs
What happens if I pick the wrong code?
IRD reconciles at year-end. Wrong code means you either overpay (refund coming) or underpay (small bill at year-end) during the year. The cash-flow effect is the only practical difference; the total tax paid for the year is the same once squared up.
Can I claim IETC?
Yes if your annual income is between $24,000 and $48,000 (full credit) or between $48,000 and $70,000 (phase-out band), and you do not receive Working for Families, NZ Super, a Veteran’s Pension, or another major benefit. The full credit is around $520/year; use ME or ME SL on your main job to receive it through PAYE.
Do I need to update my code if I get a pay rise?
Only if the rise pushes your total combined income into a different bracket and you have a secondary job. For a single main-job earner, the M (or ME) code stays right regardless of bracket. For someone with a secondary job, a salary jump on the main job that pushes combined income across a bracket boundary means the secondary code should also be updated.
What about NZ Super?
NZ Super uses the M code if it is your only income source. If you also work, the smaller of the two incomes uses a secondary code. Some retirees with substantial part-time income put the work as the M-coded "main" income and Super on a secondary code.
How does the SL suffix work with secondary jobs?
The SL suffix on a secondary code (e.g., SH SL) means the 12% student loan deduction applies to the secondary income too. Since the SL threshold ($24,128) is annualised, the calculation pro-rates: a fortnightly SL threshold is around $928, so secondary fortnightly pay above that triggers the 12% deduction for that pay run.
What is the ND code?
ND stands for "no declaration". It applies when an employee does not provide an IR330 to their employer; the employer must use ND, which deducts at 45% (the highest rate). It is intended as a placeholder, not a permanent code; submit an IR330 with the right code as soon as possible to fix it.
Are tax codes different for casual workers?
No. Casual workers use the same M / ME / S / SH / ST / SA code system. The only difference is that fixed-term and "true casual" workers can be paid 8% PAYG holiday pay instead of accruing leave, but the income-tax code is the same.
References & sources
- Inland Revenue, "Tax codes for individuals". ird.govt.nz
- Inland Revenue, "Working out an employee’s tax code (online tool)". ird.govt.nz
- Inland Revenue, "Schedular payments". ird.govt.nz
- Inland Revenue, "End of the tax year (auto-assessment)". ird.govt.nz