Find out about: Tax rates and codes
When to use secondary tax codes and special tax codes
From 1 October 2008 personal income tax rates will change. For more information see the News and Updates article. We'll update this page when the changes take effect.
Secondary tax codes
If you have more than one job, you need to work out which job gives you the highest income. This job is your main job. For all other jobs, you should generally use a secondary tax code, which means secondary tax will be deducted from that income.
If you have a part-time job and are also receiving an income-tested benefit, you need to use a secondary tax code for your part-time job.
The secondary tax rates are as follows:
- 'S' tax code is taxed at 22.4% (21% tax and 1.4% earners' levy)
- 'SH' tax code is taxed at 34.4% (33% tax and 1.4% earner's levy)
- 'ST' tax code is taxed at 40.4% (39% tax and 1.4% earners' levy)
- 'S SL' tax code is taxed at 32.4% (21% tax, 1.4% earners' levy and 10% student loan)
- 'SH SL' tax code is taxed at 44.4% (33% tax , 1.4% earners' levy and 10% student loan)
- 'ST SL' tax code is taxed at 50.4% ( 39% tax, 1.4% earners' levy and 10% student loan)
For more information on what tax code you should use, see the Tax code declaration (IR330) form.
Special tax codes
A special tax code is a tax deduction rate worked out to suit your individual circumstances. If you usually receive a large income tax/student loan bill or refund, it's a good idea to apply for a special tax code, which ensures you pay the right amount of tax as you go.
For more information about special tax codes, see our guide How to tell if you need a special tax code or deduction rate (IR23G).
Date published: 10 Jun 2008
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