NZ Tax Code SB SL
Secondary job + student loan (total PAYE income ≤ $15,600) (2026-27).
Take-home on SB SL — 2026-27 IRD rates
Annual deductions for someone paid on code SB 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 |
|---|---|---|---|---|---|
| $5,000 | $525 | $88 | $600 | $3,788 | 24.3% |
| $10,000 | $1,050 | $175 | $1,200 | $7,575 | 24.3% |
| $15,000 | $1,575 | $263 | $1,800 | $11,363 | 24.3% |
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 SB SL?
Use SB SL on your non-main job when your TOTAL annual PAYE income (all jobs, NZ Super and benefits) is $15,600 or less AND you have an NZ student loan. Deductions: 10.5% income tax + 12% student-loan repayment from the first dollar on this job. Total deduction on this job: 22.5% from $1.
When to switch from SB SL
- S SL Total PAYE income is $15,601–$53,500.
- SB Student loan is paid off.
Common mistakes with SB SL
- ⚠Unlike the primary SL codes (M SL / ME SL), secondary SL codes deduct 12% from the FIRST dollar earned on that job — there is no per-pay threshold.
- ⚠If your total salary or wages for the year are below the $24,128 annual repayment threshold, you will have repaid more than the 12% of income above it, yet SB SL still deducts 12% from the first dollar of this job. That is the deduction the Student Loan Scheme Act 2011 requires on secondary earnings (s 37(1)(b)), so it is treated as full and final (s 64) and does not come back through an IR3 or automatic assessment when your income is all salary or wages. A special deduction rate for your unused repayment threshold (ss 42 and 45) is how to avoid it.
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
Why does my SL come out at 12% from $1 on my second job?
Because you get only ONE student-loan threshold per year, and it is applied to your primary job. Secondary jobs deduct 12% from the first dollar to avoid under-collection across multiple employers.
Can I request an SL repayment deduction rate reduction?
Yes. If you can prove you will over-repay, you can apply to IRD for a "Special Deduction Rate" (SDR) under sections 42 and 45 of the Student Loan Scheme Act 2011 (for an unused repayment threshold). Approval is granted case-by-case.