New Zealand Tax Codes 2026–27

Q: What is the most common tax code in New Zealand?

M is the most common tax code. It applies to your highest-earning job when you have no student loan and are not claiming the independent earner tax credit. Adding a student loan makes it M SL; claiming the credit makes it ME.

Q: Do the published secondary tax rates include the ACC levy?

Yes. The secondary code rates New Zealand employers apply. 12.25%, 19.25%, 31.75%, 34.75% and 40.75%. Are income tax plus the 1.75%{" "}ACC earners' levy. The income tax component alone is 10.5%, 17.5%, 30%, 33% and 39%.

Q: Is MSL or ML a New Zealand tax code?

No. There is no ML or MSL code. The student loan suffix is written with a space: M SL and ME SL. Payroll systems accept the spaced form, and the IR330 has a separate student loan question rather than a combined code.

Q: What happens if I use the wrong tax code?

Nothing happens immediately. Your employer just withholds the amount your code specifies. The difference surfaces at the end of the tax year, when Inland Revenue compares what was withheld against what you actually owed and issues either a refund or a bill. Fixing the code early keeps that number small.

Q: How many tax codes are there in New Zealand?

Eleven codes cover almost everyone: four main-income codes (M, M SL, ME, ME SL) and five secondary codes (SB, S, SH, ST, SA), plus WT for contractors on schedular payments and STC for a tailored rate. A handful of situational codes. CAE, EDW, NSW and ND. Cover casual agricultural work, election day work, seasonal workers and missing paperwork.

Every code an employer can put against your name, what it deducts, and how to tell which one is yours. Rates are current for the 2026–27 tax year (1 April 2026 – 31 March 2027).

Your tax code tells your employer how much PAYE to deduct. Most New Zealanders on one job use M, or M SL with a student loan. A second job uses a flat secondary code. SB, S, SH, ST or SA, chosen on your total income from every source, not on what the second job pays.

Main income codes

One of these goes on your highest-earning job. All four run the same progressive PAYE scale. 10.5% rising to 39%. Plus the 1.75% ACC earners' levy on earnings up to $156,641. What the code changes is what happens on top of that.

Main income tax codes and what each one adds
Code	Use it when	Student loan	IETC
M	Main income, no student loan	-	-
M SL	Main income with a student loan	12% over $24,128	-
ME	Main income, claiming the independent earner tax credit	-	$520 a year
ME SL	Main income, IETC and a student loan	12% over $24,128	$520 a year

There is no ML and no MSL. The student loan suffix is a separate token with a space in front of it, and payroll systems will reject the run-together forms. More on the SL suffix.

Secondary income codes

Every job after your main one is taxed at a single flat rate rather than through the progressive bands, because your employer cannot see what the other job pays. Pick the code by adding all your income together. Every job, plus any taxable benefit or pension, and finding the band that total lands in.

Secondary tax codes, rates, and rates with the student loan suffix
Code	Total income from all sources	Rate	With SL
SB	Total income up to $15,600	12.25%	24.25%
S	$15,601 – $53,500	19.25%	31.25%
SH	$53,501 – $78,100	31.75%	43.75%
ST	$78,101 – $180,000	34.75%	46.75%
SA	$180,001 and over	40.75%	52.75%

The rate column is what payroll actually deducts: income tax plus the 1.75% ACC earners' levy, already added together. The final column is the same code with a student loan attached - and that jump is bigger than most people expect, because student loan on a secondary job is 12% of every dollar with no threshold at all.

The student loan threshold belongs to one job only

The $24,128 a year repayment threshold ($464.00 a week) applies to your main job. On a second job with an SL suffix, the 12% starts at the first dollar. That is why an SH SL shift can lose 43.75% of its gross while the same money on your main job loses far less. secondary tax in New Zealand.

Other codes you might see

Contractor, situational and no-declaration tax codes
Code	Who it applies to	Rate
WT	Contractors paid a schedular payment. You choose the rate on an IR330C; no ACC levy, KiwiSaver or student loan comes out at source.	Your choice, min 10%
CAE	Casual agricultural employee. Day-to-day seasonal work with no ongoing expectation of employment. Shearing gangs, fruit picking, freezing works casuals.	19.25%
EDW	Election day worker. Engaged on an occasional basis for polling-day work. Used for that income only.	19.25%
NSW	Non-resident seasonal worker. Workers here under the Recognised Seasonal Employer scheme. A flat rate on every dollar.	12.25%
ND	No declaration. Not a code you choose. Your employer must apply it if you have not given them a completed IR330. Give them the form and it stops.	46.75%
STC	Special tax code. A rate Inland Revenue sets for your circumstances after you apply. Used when no standard code withholds the right amount.	Set by IRD

ND is the one to watch. It is not a choice, it is what payroll must apply when you have not handed in a completed IR330, and at 46.75% it is higher than any code you could legitimately be on. Hand in the form and the next pay run corrects itself.

How to work out which code is yours

Decide which job is the main one. It is the one paying you the most, not the one you have held longest. Everything else is secondary.
Add up your whole year. Every job, plus any taxable benefit, ACC weekly compensation or pension. This total is what picks your secondary code. A $8,000 weekend job attached to a $60,000 salary is taxed on the $68,000 total, not on the $8,000.
Check the student loan question. If you have a New Zealand student loan and are not fully repaid, add the SL suffix.
Check the independent earner tax credit. Between $24,000 and $70,000 total income, with no Working for Families, main benefit, NZ Super or Veteran's Pension, your main-income code becomes ME instead of M.
Put it on an IR330. Give the form to your employer, not to Inland Revenue. One form per employer.

If that is five decisions too many, what tax code am I.

Every code, in detail

what tax code am IFive questions, one answer
tax code MMain income, no student loan
tax code MEMain income with the $520 independent earner tax credit
the student loan suffixThe student loan suffix, and why MSL is not a code
secondary taxWhat a second job actually costs, and the square-up
Tax code S. 19.25%$15,601 – $53,500
Tax code SH. 31.75%$53,501 – $78,100
tax code WTContractors and schedular payments
the independent earner tax credit$520 a year, and the band almost everyone gets wrong
the IR330 tax code declarationFilled in, section by section
changing your tax codeWhere to find the one you are on, and how to switch

Common questions

What is a tax code in New Zealand?

A tax code is a short letter code you give your employer on an the IR330 tax code declaration. It tells payroll which PAYE rate to withhold, whether to deduct student loan repayments, and whether you are claiming the independent earner tax credit. It does not change how much tax you owe for the year, only how much is taken each payday.

What is the most common tax code in New Zealand?

M is the most common code. It applies to your highest-earning job when you have no student loan and are not claiming the independent earner tax credit. Adding a student loan makes it M SL; claiming the credit makes it ME.

Do the published secondary tax rates include the ACC levy?

Yes. The secondary rates your employer applies - 12.25%, 19.25%, 31.75%, 34.75% and 40.75%, are income tax plus the 1.75% ACC earners' levy. The income tax component on its own is 10.5%, 17.5%, 30%, 33% and 39%. Most sites quote one set and label it the other.

Is MSL or ML a New Zealand tax code?

No. There is no ML or MSL code. The student loan suffix is written with a space. M SL and ME SL. See the SL suffix explained.

What happens if I use the wrong tax code?

Nothing happens immediately. Payroll simply withholds what your code says. The difference surfaces at the end of the tax year, when Inland Revenue compares what was withheld against what you actually owed and issues a refund or a bill. Fixing the code early keeps that number small. How to change your tax code.

How many tax codes are there in New Zealand?

Eleven cover almost everyone: four main-income codes, five secondary codes, WT for contractors and STC for a tailored rate. The rest, CAE, EDW, NSW and ND - are situational, and ND is not one you can choose.

Where these figures come from

2026–27 tax year (1 April 2026 – 31 March 2027). Last verified 30 July 2026.

New Zealand PAYE tax ratesIncome tax and the ACC levy combined into one rate
New Zealand tax bracketsThe progressive bands behind the main-income codes
how to read a New Zealand payslipWhere your tax code appears, line by line
what is PAYEWhat your employer withholds, and why
student loan repayments12% of every dollar over $24,128
ACC earners' levyThe 1.75% inside every code on this page