Work out your tax code
Special tax codes
A special tax code or deduction rate is a tax deduction rate worked out to suit your individual circumstances. You may want to get a special tax code if the regular tax codes will result in you paying either not enough or too much tax or student loan repayment.
A special tax code or deduction rate could help if you:
- have a second job or other income over and above your main job
- are a beneficiary or receiving ACC and working
- receive an overseas pension that is taxable in New Zealand
- have business losses from a previous year to carry forward but you're earning a salary or wage now
- have a student loan and you will overpay your minimum repayments using the normal tax and repayment rates
- have a student loan and you want to pay it off faster.
- have had a large tax refund or bill in the past and your current circumstances are the same.
If you decide that a special tax code is right for you, go to "Forms and guides" and complete the Special tax code/student loan special repayment deduction rate application - 2009 (IR23BS) .
For more information about special tax codes, see our guide How to tell if you need a special tax code or deduction rate (IR23G) - go to "Forms and guides". You don?t have to wait till the start of a new tax year to apply.
Once we receive your application
We'll calculate the correct rate of tax and student loan repayments for your situation. The rate may be higher or lower than would have been deducted with the standard repayment codes. It will be the right rate for your particular situation, meaning you won't end the year with a large tax refund or bill.
We'll send you a Special tax code or deduction rate (IR23) certificate that you need to sign before handing to your employer. This tells them the rate of tax to deduct from your pay.
Note
This rate is based on your estimates and may not be the final amount you owe. Final tax can only be worked out on the actual figures shown when you receive your personal tax summary or file your individual tax return (IR 3) at the end of the tax year.
If your circumstances change
Once you have a special tax code certificate (IR23) you need to tell us of any changes in your circumstances. We'll work out a new special tax code or deduction rate to suit your new situation.
Changes in your circumstances may include:
- starting a new job
- having paid off your student loan
- an increase or decrease in pay
- ceasing a job.
Note
We've provided this decision tree to help you work out your tax code. We welcome your feedback on how useful you found it.
Date published: 01 Jul 2008
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