New Zealand Tax Codes Explained (2026–27)

All New Zealand tax codes and rates for 2026–27

There is one main-income code family (M, ME and their SL versions), five secondary codes, and a handful of special codes for particular workers. Inland Revenue's payroll specification lists them all. The main-income codes use the progressive rates. Every other code is a flat rate applied to each dollar of that pay, and the ACC earners' levy (1.75% in 2026–27) is deducted on top of the tax rate shown below.

M and ME: the code for your main job

M is the default code for your main or only income. Payroll annualises each pay, works out the tax on that annual figure with the full rate scale (10.5% on $0–$15,600, 17.5% on $15,601–$53,500, 30% on $53,501–$78,100, 33% on $78,101–$180,000, 39% on $180,001 and over), adds the earners' levy, and spreads it back over the pay period. Because there is no tax-free threshold in New Zealand, M deducts tax from the first dollar.

ME is M with the independent earner tax credit (IETC) built in, so it deducts up to $10 a week less than M. You can only use ME on one source of income, and Inland Revenue's IR330 note 5 says you must not use it if you or your partner receive Working for Families, or you receive a main benefit, NZ Super, Veteran's Pension or an overseas equivalent.

If you receive a main benefit from Work and Income, the benefit itself is always coded M, so every job you hold alongside it needs a secondary code. NZ Super recipients change their tax code through the Ministry of Social Development rather than an employer.

Secondary tax codes SB, S, SH, ST and SA

A secondary code is chosen by your estimated total annual income from all sources, not by what the second job pays. The flat rate equals the top marginal rate you reach once everything is added up, so the extra income is taxed at the rate it actually falls into.

Worked example: Aroha earns $70,000 from her main job on code M and $250 a week from weekend work, $13,000 a year. Her total is $83,000, which falls in the $78,101–$180,000 band, so the IR330 flowchart points to ST. The second job adds $4,047 to her income tax for the year, because part of it is taxed at 30% and the rest at 33%.

Why the right secondary code can still give a small refund

In the example, ST slightly over-deducts because the first slice of Aroha's weekend pay really falls in the lower band. Inland Revenue's automatic assessment after 31 March squares this up and refunds the difference. Choosing a lower code to avoid that small refund is a false economy: S would leave a bill of about $1,772. If the gap is large every year, apply for a tailored tax code instead of guessing.

Re-check your secondary code whenever either income changes. A pay rise in the main job can move your total over $53,500 or $78,100, and the code that was right in April may be wrong by October.

ND: what happens if you do not give an IR330

If you do not complete sections 1, 2 and 3 of the IR330, your employer must deduct tax at the non-notified rate of 45% plus the earners' levy. Section 1 asks for your IRD number, so a form without one is not complete. On a $1,000 week that is $467.50 deducted under ND against $171.50 under M, a difference of $296.00 every week.

The excess is not lost. It counts as tax paid and comes back through your end-of-year assessment, but that can be many months away. The fix is simply to give your employer a completed IR330. Your employer must start using the new code once they receive it.

Student loan codes: adding SL

Adding SL tells payroll to deduct student loan repayments. On a main-job code (M SL or ME SL) the deduction is 12% of pay above the repayment threshold of $24,128 a year, which is $464.00 a week. On $900 a week that is $52.32. On a secondary code there is no threshold, so 12% comes off every dollar: S SL on a $300 week deducts $36.00.

IR330 note 6 warns that SB SL and S SL can over-collect if your main job pays less than the threshold. In that case you can apply for a special repayment deduction rate. Full-time students who expect to earn under the threshold may qualify for a repayment deduction exemption. Once the loan is repaid, give your employer a new IR330 moving from M SL to M.

Special codes: CAE, EDW, NSW, STC and WT

CAE is for casual agricultural employees doing seasonal work day to day for up to three months, with no other income in that time. EDW is for temporary election workers during the two-week advance voting period and election day. Both take 19.25% of each pay, which is 17.5% tax plus the levy. NSW covers recognised seasonal workers in horticulture and viticulture, and foreign fishing crew, at 10.5% plus the levy with no thresholds.

STC means you hold a tailored tax code certificate. Inland Revenue issues it when the standard codes would leave you with a regular bill or refund, for example several jobs, a benefit while working, or business losses carried forward against wages. Apply in myIR or on the IR23BS form. A tailored code lasts until 31 March at most. Inland Revenue's payroll specification says that when it expires without a replacement certificate or new IR330, your employer goes back to the code on your previous IR330, or the no-notification rate if you never gave one.

WT is not on the IR330. Contractors paid schedular payments give the payer the Tax rate notification for contractors (IR330C) and choose their own rate. Most can pick any rate down to 10%. ACC earners' levy, KiwiSaver and student loan deductions do not apply to WT payments. Contractors pay the levy on their ACC invoice and settle any remaining tax through their IR3 return.

How to change your tax code

You change a code by filling in a new IR330 and giving it to your employer, or to Work and Income for a benefit, student allowance or NZ Super. Your employer must use the code on the most recent form even if they had different advice before, and must keep the form for seven years after your last pay.

• You start a second job or one of your incomes rises or falls enough to cross a band.
• You take out a student loan or pay one off (add or remove SL).
• You become eligible or ineligible for ME, for example your income moves past $70,000, or you start receiving Working for Families.
• You move from a benefit to a job, or ACC weekly compensation becomes larger than your wages (ACC can be your main or secondary income).
• Inland Revenue tells you or your employer the code is wrong. It does this when, for example, M is used on two jobs at once.