NZ Tax Codes Explained 2025-26 & 2026-27
Complete NZ tax codes list for 2025-26 & 2026-27 — what M, ME, M SL, SB, S, SH, ST, SA and WT mean, and how to update your code with payroll.
Published 2 March 2026 · Reviewed by NZTaxTools editorial review · 5 min read
- M / ME
- Main-job codes
- 12%
- Student loan (SL) rate
- 10.5–39%
- Secondary code rates
ME adds the IETC at $24k–$70k
above $24,128 (2025-26)
SB, S, SH, ST, SA by total income
Calculate your PAYE and take-home pay
Enter your salary and tax code below to see PAYE, ACC, KiwiSaver and student loan deducted from each pay — so you can check the code above is giving the right result.
Your tax code tells your employer how much PAYE to deduct from your pay. Using the wrong tax code can result in too much or too little tax being withheld — leading to a surprise bill or an unnecessary wait for a refund. Here’s what each code means.
Primary Employment Codes
These codes are for your main job (the one where you earn the most):
| Code | Meaning |
|---|---|
| M | Standard primary employment code |
| ME | Primary employment + IETC (Independent Earner Tax Credit) |
| M SL | Primary employment + student loan |
| ME SL | Primary employment + student loan + IETC |
M is the most common code. If your annual income is between $24,000 and $70,000 and you don’t receive Working for Families or a main benefit, use ME to get the IETC applied automatically.
IRD writes the student-loan codes with a space (e.g. M SL, ME SL) on the IR330 form. Some older payslips and systems use the concatenated form (ML, MLE) — they mean the same thing.
Secondary Employment Codes
If you have a second job (or more), use one of these codes for the additional employment:
| Code | Income range it suits |
|---|---|
| SB | If total annual income is $15,600 or less |
| S | If total annual income is $15,601–$53,500 |
| SH | If total annual income is $53,501–$78,100 |
| ST | If total annual income is $78,101–$180,000 |
| SA | If total annual income is over $180,000 |
Secondary codes apply a flat withholding rate based on your expected total income across all jobs. This ensures enough tax is withheld overall. For a closer look at how each secondary code works and how to pick the right one, see secondary tax codes SB, S, SH, ST and SA explained.
| Code | Tax rate |
|---|---|
| SB | 10.5% |
| S | 17.5% |
| SH | 30% |
| ST | 33% |
| SA | 39% |
For a full breakdown of all New Zealand PAYE rates and brackets across every income level, see our tax rates guide.
Student Loan Codes
If you have a student loan, your tax code must reflect this so loan repayments are deducted:
- Add SL to your primary code (e.g., M becomes M SL, ME becomes ME SL)
- For secondary employment with a student loan, add SL to the secondary tier — SB SL, S SL, SH SL, ST SL, or SA SL
The student loan deduction rate for NZ-based borrowers is 12% of income above the repayment threshold ($24,128 for 2025-26).
Special Codes
| Code | Use |
|---|---|
| NSW | Non-resident seasonal worker (Recognised Seasonal Employer horticulture/viticulture scheme, or foreign crew on a fishing vessel in NZ waters) — flat 12.25% final withholding (includes ACC earner’s levy), no tax return required |
| CAE | Casual agricultural employee (shearers, shearing shed-hands, day-to-day farm work up to 3 months) — flat 19.25% (includes ACC earner’s levy) |
| EDW | Election day worker (casual work for advance voting and election day only) — flat 19.25% (includes ACC earner’s levy) |
| WT | Withholding tax for schedular payments — rate varies by activity, see schedular payments |
How to Choose the Right Code
- One job, no student loan: Use M (or ME if income is $24,000–$70,000)
- One job, with student loan: Use M SL (or ME SL for IETC)
- Two jobs, no student loan: Use M for main job, then SB/S/SH/ST/SA for the secondary job based on your total income
- Two jobs, with student loan: Use M SL for main job, then SB SL / S SL / SH SL / ST SL / SA SL for the secondary job
Use our PAYE calculator to see exactly how each code affects your weekly, fortnightly, and monthly take-home pay.
How to Update Your Tax Code
Complete an IR330 form (Tax code declaration) and give it to your employer. You can:
- Download the form from the IRD website
- Complete it through myIR
- Ask your employer for a copy
Your employer must apply the new tax code from the next pay period after receiving the form.
Common Mistakes
- Using M for a second job: This undertaxes your secondary income, leading to a year-end bill
- Not adding the student loan indicator: You’ll miss compulsory repayments and may owe a lump sum
- Forgetting to update after a pay rise: If your income crosses a threshold, your secondary code may need to change
If a wrong code left you under-taxed across the year, you’ll square it up when you file — see the IR3 2025-26 filing hub for how to lodge and settle (or claim a refund).
Related Tools
- Take-Home Pay Calculator — See how your tax code affects your take-home pay
- Income Tax Calculator — Full PAYE breakdown by bracket
Sources
- Tax codes for individuals — IRD
- IR330 tax code declaration — IRD
- IR335 Employer’s guide — IRD (CAE/EDW/NSW flat rates)
Frequently asked questions
What tax code should I use for my main job?
Use M for your main job — or ME if your annual income from all sources is $24,000–$70,000 and you don't receive Working for Families or a main benefit. Add SL for a student loan, e.g., M SL or ME SL.
Which secondary tax code matches my income?
SB if total annual income is $15,600 or less, S for $15,601–$53,500, SH for $53,501–$78,100, ST for $78,101–$180,000, and SA for income over $180,000. Add SL for a student loan.
How do I change my tax code?
Complete an IR330 (Tax Code Declaration) and give it to your employer. The new code applies from the next pay period after they receive the form.
What happens if I use the wrong tax code?
Using M on a second job undertaxes that income, leading to a year-end tax bill. Missing the SL indicator means you'll skip compulsory student loan repayments and may owe a lump sum at year end.
Are ML and M SL the same code?
Yes. IRD's IR330 writes the modern code with a space (M SL or ME SL). Some older payslips and payroll systems use the concatenated form (ML or MLE). They mean the same thing.
What is the SL in M SL?
SL adds compulsory student loan repayments to your tax code. The deduction rate for NZ-based borrowers is 12% of income above the repayment threshold ($24,128 for 2025-26).
Primary sources
Related Calculators
Final pay calculator
Net pay when leaving a job — wages, holiday pay and redundancy
Insolvency employee claim
Priority cap for wages, holiday pay and redundancy when an employer fails
Take-home pay
Net pay after PAYE, ACC and KiwiSaver
Reverse salary calculator
Required gross salary to hit a target take-home
Salary raise calculator
Net take-home increase from a pay rise
All New Zealand calculators
Browse every nztax.tools calculator