How student loan repayments work
If you live in New Zealand and earn salary or wages, your employer takes student loan repayments out of your pay. Your tax code ends in SL so they know to do it.
The rule is simple. You repay 12 cents of every dollar you earn over the threshold. For 2026–27 the threshold is $24,128 a year. It hasn't changed from 2025–26.
Repayment thresholds 2026–27
Your employer uses the threshold for your pay period:
| Pay period | Threshold | Repayment |
|---|---|---|
| Weekly | $464 | 12% of pay over $464 |
| Fortnightly | $928 | 12% of pay over $928 |
| Four-weekly | $1,856 | 12% of pay over $1,856 |
| Monthly | $2,010.66 | 12% of pay over $2,010.66 |
| Yearly | $24,128 | 12% of income over $24,128 |
Worked example: $60,000 a year
- Over the threshold: $60,000 − $24,128 = $35,872
- Yearly repayment: $35,872 × 12% = $4,304.64
- Weekly pay is $1,153.85, so each week: ($1,153.85 − $464) × 12% = about $82.78
See your whole payslip, with tax, ACC and KiwiSaver too.
Take-home pay calculator →Second jobs
The threshold only applies to your main job. On a second job, 12% of all your pay goes to the loan, from the first dollar. Your secondary tax code ends in SL, such as S SL or SH SL. The tax code finder will tell you which one.
Interest
Your loan is interest-free while you're based in New Zealand. So every dollar you repay comes straight off the balance. That's why the calculator can work out a payoff date by dividing your balance by what you repay each year.
If you move overseas, it's different. Overseas-based borrowers are charged interest, at 5.6% in 2026–27. This calculator doesn't cover overseas-based loans.
Questions people ask
What is the student loan repayment threshold for 2026–27?
$24,128 a year. That's $464 a week, $928 a fortnight, $1,856 every four weeks or $2,010.66 a month. It's the same as 2025–26.
How much student loan comes out of my pay?
12% of everything you earn over the threshold. On $60,000 a year that's $4,304.64 a year, or about $82.78 a week.
Do I pay student loan on a second job?
Yes. On a second job, 12% of all your pay goes to the loan. The threshold doesn't apply to secondary income.
Is my student loan interest-free?
Yes, while you're based in New Zealand. Overseas-based borrowers are charged interest, at 5.6% in 2026–27.
How accurate is the payoff date?
It's a rough guide. It assumes your pay stays the same, you stay in New Zealand, and you make no other repayments. A pay rise would shorten it.
Is my information saved?
No. The sums run in your browser, and nothing you type leaves your device.
Sources: Inland Revenue, Repaying my student loan when I earn salary or wages and Student loan interest and fees. Rates checked October 2026. This is an estimate, not tax advice.