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Find out about: Tax rates and codes
- Codes for your main source of income
- Codes for your secondary source of income
- Tax codes if you're receiving an income-tested benefit
- Other codes
Your tax code depends on how many sources of income you have, and whether you have a student loan. Use the following table to work out your tax code and for more detail see the Tax code declaration (IR330).
It's your responsibility to make sure you use the right tax code.
Use this table to help work out your tax code for your main source of income.
|If you ...||then your main tax code is ...||and if you have a student loan your tax code is ...|
|Note||Student loan borrowers using a main job tax code - from 1 April 2012|
If you have a student loan you're required to use a main tax code that includes "SL" unless you have a repayment deduction exemption.You'll need to change your main tax code to one that includes "SL" from 1 April 2012, by completing the Tax code declaration (IR330) and then giving it to your employer. Your employer will only make repayment deductions if your pay period gross earnings are more than the pay period repayment threshold. Your employer won't make any deductions if you don't earn over the threshold ($367 or less per week).
Use these codes for any income you receive from a second job or another source.
|If you have a second job and your total annual income is...||then your secondary tax code is ...||and if you have a student loan your tax code is ...|
|$14,000 or less||SB||SB SL - see "Note 1" below|
|between $14,001 and $48,000||S||S SL - see "Note 1" below|
|between $48,001 and $70,000||SH||SH SL|
|over $70,000||ST||ST SL|
|Note 1||Student loan borrowers using SB SL or S SL|
If the secondary tax code you choose for your circumstances is SB SL or S SL and your gross income from your main job is less than $367 per week, the 12% standard student loan deductions for your secondary income may be too high. You may qualify for a student loan special deduction rate.
|Note 2||Student loan borrowers using secondary job tax codes|
From 1 April 2012, if you have a student loan, you're required to use a secondary tax code including "SL" on your secondary income unless you have a repayment deduction exemption.
If you're not already using a secondary "SL" code, you'll need to change it to one that does by completing the Tax code declaration (IR330) and giving this to your employer.
If you're receiving an income-tested benefit your tax code is M. If you're working at the same time, you must use a secondary tax code for your other income. If you have a student loan, you must select a secondary tax code that includes "SL".
Sometimes using a secondary tax code could mean that you pay more tax than you need to. You can apply for a special tax code on your secondary income, so that the right amount of tax is deducted during the year. If you have a student loan, the secondary tax code could also mean you have too much deducted for your student loan. You can also apply for a special deduction rate for your student loan deductions.
Other codes that you may need to use include:
- WT for schedular payments
- CAE for the earnings of casual agricultural employees
- EDW for the earnings of election day workers
- NSW for the earnings of non-resident seasonal workers
- STC for a special tax code. This is a tax rate worked out to suit your individual circumstances. For example:
- you have a second job or other income over and above your main job
- receiving a benefit or ACC and working at the same time, or
- receiving an overseas pension that's taxable in New Zealand.
Note Special tax codes for student loan borrowers
From 1 April 2012, you won't be able to use a special tax code to change the amount of your student loan repayment deductions from your salary or wages. However, you may be able to use one of the following:
Student loan special deduction rates for secondary income
If the secondary tax code you choose for your circumstances is SB SL or S SL and your gross income from your main job is less than $367 per week, the 12% standard student loan deductions for your secondary income may be too high.
If you are working and studying full-time, and think you'll earn under the annual repayment threshold of $19,084 for the tax year, you can apply for a repayment deduction exemption so you won't need to have student loan repayment deductions from your salary or wages. A repayment deduction exemption means you won't have to use student loan tax codes.
Making extra repayments through your salary or wages
You can ask your employer to make extra student loan deductions from your salary or wage if you want to pay more than you need to