Secondary job + student loan (total PAYE income $53,501–$78,100) (2026-27).
Take-home on SH SL — 2026-27 IRD rates
Annual deductions for someone paid on code SH 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
$10,000
$3,000
$175
$1,200
$5,625
43.8%
$20,000
$6,000
$350
$2,400
$11,250
43.8%
$30,000
$9,000
$525
$3,600
$16,875
43.8%
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 SH SL?
Use SH SL on your non-main job when your TOTAL annual PAYE income (all jobs, NZ Super and benefits) is $53,501 to $78,100 AND you have an NZ student loan. Deductions on this job: 30% income tax + 12% SL = 42% from the first dollar.
When to switch from SH SL
S SLTotal PAYE income drops below $53,501.
ST SLTotal PAYE income rises above $78,100.
SHStudent loan is paid off.
Common mistakes with SH SL
⚠42% all-in is the highest effective deduction for most dual-job NZ workers. On a $20k secondary job, about $8,400 goes to IRD immediately.
⚠SH SL withholds 30% income tax on every dollar of this job. If your primary job pays less than $53,500, the part of this job's pay that takes your total up to $53,500 is taxed at a lower bracket rate, so income tax is over-withheld: IRD settles that at year-end (automatic assessment or IR3), or you can apply for a tailored tax code with IR23BS.
No — 42% is income tax + SL only. ACC earner's levy (1.75%, deducted on every dollar — the annual maximum does not apply to PAYE on regular secondary income) and KiwiSaver (3.5%/4%/6%/8%/10% optional) are deducted on top. All-in deductions for an ACC-paying, KiwiSaver-3.5%-contributing SH SL worker can reach ~47%.
Can I stop SL deduction on my secondary job only?
Only via an IRD-approved Special Deduction Rate (SDR). Without one, every SL-coded job deducts 12% from the first dollar on that job.
