Student Loan Repayment Threshold 2026–27
The New Zealand student loan repayment threshold is $24,128 a year for 2026–27. Employers apply it per pay period: $464.00 a week, $928.00 a fortnight, $1,856.00 every four weeks and $2,010.66 a month. Earnings above the threshold carry a 12% deduction.
The threshold for every pay frequency
| Pay frequency | Threshold per pay | Annual equivalent | Deducted on $200 above |
|---|---|---|---|
| Weekly52 pays a year | $464.00 | $24,128.00 | $24.00 |
| Fortnightly26 pays a year | $928.00 | $24,128.00 | $24.00 |
| Four-weekly13 pays a year | $1,856.00 | $24,128.00 | $24.00 |
| Monthly12 pays a year | $2,010.66 | $24,127.92 | $23.92 |
Every figure in the second column is $24,128 divided by the number of pays in the year. The last column is 12% of $200 in every row, which is the point: the threshold decides whether a deduction happens, and the rate decides how big it is.
Why the monthly threshold is $2,010.66
$24,128 does not divide evenly by twelve. The exact quotient is 2010.6667, and Inland Revenue truncates to cents rather than rounding, which gives $2,010.66. Weekly, fortnightly and four-weekly all divide cleanly, so only the monthly figure carries the remainder.
The consequence is small and entirely real. Twelve monthly thresholds add to $24,127.92, which is $0.08 below the annual threshold of $24,128. A monthly-paid borrower therefore gets $0.08 less threshold across the year than a weekly-paid one, and pays $0.01 more in student loan deductions for the same salary.
Nobody is going to notice $0.01. It is here because it explains why a calculator that divides the annual threshold by twelve disagrees with a payslip, and because the same truncation rule runs through every other figure your payroll system produces.
The threshold is per pay period, not per year
Your employer has no way of knowing what you will earn for the year. It knows what it is paying you this period, so it applies the threshold for that period and moves on. Three things follow from that, and all three surprise people.
- A big week triggers a deduction even in a small year. One week of $964.00 produces a deduction of $60.00, whether or not the other 51 weeks were paid at all.
- A quiet period is not carried forward. Unused threshold from a week under $464.00 does not roll into the next week. Each period stands alone.
- Irregular income over-collects across the year. Inland Revenue reconciles it after 31 March, and an over-deduction comes back as part of your New Zealand tax refund.
If you expect to stay under the annual threshold
Full-time students who expect to earn less than $24,128 for the year can apply to Inland Revenue for a repayment deduction exemption. It tells your employer to stop deducting, so the money stays with you during the year instead of coming back after 31 March. If your income then goes above the threshold, the exemption ends and the shortfall is collected.
Common questions
What is the student loan repayment threshold in NZ?
$24,128 a year for 2026–27. Earnings above it carry a 12% deduction. Your employer applies the threshold to each pay period, not to the year: $464.00 a week, $928.00 a fortnight or $2,010.66 a month.
What is the weekly student loan repayment threshold?
$464.00 for 2026–27. Gross weekly pay at or below that produces no deduction. A week of $664.00 gives a deduction of $24.00.
What is the monthly student loan repayment threshold?
$2,010.66. It is $24,128 divided by twelve and truncated to cents, which is why twelve of them add to $24,127.92 rather than to the annual figure exactly.
Does the repayment threshold apply to a second job?
No. It is an allowance against your main job only. A second job is charged 12% from the first dollar. student loan repayments.
Does the repayment threshold change every year?
It is set for each tax year, and any change takes effect on 1 April. For 2026–27 it is $24,128. When the annual figure moves, every pay-period figure moves with it. the New Zealand tax year.
Is this the same as a tax-free threshold?
No. New Zealand has no tax-free threshold. Income tax starts at 10.5% on your first dollar and the ACC earners' levy applies from the first dollar too. The $24,128 figure changes the student loan deduction and nothing else.
Where these figures come from
2026–27 tax year (1 April 2026 – 31 March 2027). Last verified 30 July 2026.
Related
- student loan repaymentsHow the 12% deduction works, and what SLCIR means
- student loan repayment calculatorYour repayment per pay period, and years to clear
- the student loan suffixThe switch that turns the deduction on
- how to read a New Zealand payslipWhere the deduction appears each period
- the New Zealand tax yearThe threshold resets on 1 April