NZ Tax Code M SL
Primary-job code with student loan, no IETC (2026-27).
Take-home on M SL — 2026-27 IRD rates
Annual deductions for someone paid on code M SL. Numbers below include income tax, ACC earner's levy, and student loan (where applicable). KiwiSaver is not included — add your chosen rate on top.
| Annual gross | Income tax (PAYE) | ACC levy | Student loan | Take-home | Effective rate |
|---|---|---|---|---|---|
| $40,000 | $5,908 | $700 | $1,905 | $31,487 | 21.3% |
| $70,000 | $13,221 | $1,225 | $5,505 | $50,050 | 28.5% |
| $100,000 | $22,878 | $1,750 | $9,105 | $66,268 | 33.7% |
| $150,000 | $39,378 | $2,625 | $15,105 | $92,893 | 38.1% |
Source: IRD published 2026-27 tax brackets, ACC earner's levy 1.75%, student-loan rate 12% over $24,128. See full PAYE calculator for any income and pay period.
Who should use M SL?
Use M SL when this is your main job, you have an NZ government student loan, and you are not entitled to the Independent Earner Tax Credit: your annual income is under $24,000 or $70,000 or more, or you or your partner get Working for Families, you get a main benefit, NZ Super or a veteran's pension (or an overseas equivalent), or you are not NZ resident. Your employer deducts progressive income tax plus 12% student-loan repayment on the portion above the weekly / fortnightly threshold.
When to switch from M SL
- ME SL Your annual income is $24,000 to under $70,000 and none of the IETC exclusions apply (no Working for Families, main benefit, NZ Super or veteran's pension) — switch to pick up the IETC.
- M You pay off the student loan or IRD switches you to "finalised" status.
- S SL This stops being your main job. SL is the student loan repayment code and is always combined with your tax code, so a second job takes the secondary code for your total PAYE income plus SL (SB SL, S SL, SH SL, ST SL or SA SL).
Common mistakes with M SL
- ⚠Student-loan threshold is $24,128/year ($464/week / $928/fortnight) for 2026-27. On M SL the 12% only applies to the portion above this threshold.
- ⚠Unlike income tax, student-loan deductions on a primary code do NOT average across the year — they are taken from each pay based on the weekly / fortnightly threshold. Short hours in one week reduce SL that week but do not refund prior-week over-deductions automatically.
Unsure this is the right code? Use our tax-code checker wizard (2 to 3 questions), or jump to the full PAYE calculator for any income and pay period.
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Frequently asked questions
Does M SL deduct 12% from my first dollar?
No — on a primary code (M SL / ME SL), the 12% only applies to income above the $24,128 annual threshold ($464 per week or $928 per fortnight for 2026-27). Secondary SL codes (S SL, SH SL, etc) do deduct 12% from the first dollar on that job.
I paid off my loan. Can I switch back to M?
Check that your loan is fully repaid, then give your employer a new IR330 with the code that has no SL. IRD says that once you have paid off your loan you need to choose a new tax code and tell your employer.