How to pick your tax code
Your tax code tells your employer how much tax to take from each pay. You give it to them on an IR330 form when you start a job. The right code depends on three things:
- Is it your main job? Your main job is the one that pays the most. It uses M or ME. Every other job uses a secondary code.
- How much do you earn? ME is only for incomes from $24,000 to $70,000. Secondary codes are set by your total income from all jobs.
- Do you have a student loan? If you have a New Zealand student loan, add SL to the end of the code.
Every NZ tax code and what it means
| Code | Who it's for |
|---|---|
| M | Your main or highest-paying job. Also the code for a main benefit. |
| ME | Main job, NZ tax resident, income $24,000 to $70,000, and no Working for Families, main benefit, NZ Super, Veteran's Pension or overseas equivalent. |
| SB | Second job, total income up to $15,600. |
| S | Second job, total income $15,601 to $53,500. |
| SH | Second job, total income $53,501 to $78,100. |
| ST | Second job, total income $78,101 to $180,000. |
| SA | Second job, total income over $180,000. |
| … SL | Added to M, ME, SB, S, SH, ST or SA if you have a New Zealand student loan. |
| CAE | Casual agricultural workers hired day to day for up to 3 months, including shearers. |
| EDW | Election day workers. |
| NSW | Recognised seasonal worker visa holders and foreign fishing crew. |
| STC | You have a tailored tax code certificate from Inland Revenue. |
| WT | Contractors. They use the IR330C form instead. |
| ND | No declaration. Tax is taken at 45%. |
Secondary tax codes for a second job
A second job doesn't get the lower brackets. Instead, all of its pay is taxed at one flat rate. You pick the rate by adding up your expected income from all your jobs for the year.
| Total income from all jobs | Code | Rate on the second job |
|---|---|---|
| Up to $15,600 | SB | 10.5% |
| $15,601 – $53,500 | S | 17.5% |
| $53,501 – $78,100 | SH | 30% |
| $78,101 – $180,000 | ST | 33% |
| Over $180,000 | SA | 39% |
These bands match the income tax brackets. The flat rate is the top rate your total income reaches. With a student loan, 12% of all pay from the second job also goes to the loan, because the repayment threshold only applies to your main job.
Know your code? See what lands in your account each pay.
Take-home pay calculator →M or ME?
ME works the same as M, plus it gives you the independent earner tax credit. That's $10 a week ($520 a year) if you earn $24,000 to $66,000. It drops by 13c for every dollar over $66,000 and is gone at $70,000. If you get Working for Families, a main benefit, NZ Super or a Veteran's Pension, use M.
What happens with no tax code
If you don't give your employer an IR330, they have to use ND, the non-declaration code. Tax comes out at 45%, plus the ACC earners' levy.
Questions people ask
What is tax code M?
M is the code for your main or highest-paying job. Tax comes out using the normal brackets, from 10.5% to 39%. It's also the code for a main benefit. Add SL if you have a New Zealand student loan.
What's the difference between M and ME?
Both are main-job codes. ME also gives you the independent earner tax credit, up to $10 a week. You can use ME if you're an NZ tax resident earning $24,000 to $70,000 and you don't get Working for Families, a main benefit, NZ Super or a Veteran's Pension.
What tax code should I use for a second job?
A secondary code, chosen by your total income from all jobs: SB up to $15,600, S from $15,601 to $53,500, SH from $53,501 to $78,100, ST from $78,101 to $180,000, and SA over $180,000. Add SL if you have a student loan.
What is secondary tax?
Secondary tax is the flat rate taken from a second job. Your main job uses the tax brackets, so the second job is taxed at the top rate your total income reaches: 10.5%, 17.5%, 30%, 33% or 39%.
What happens if I don't give my employer a tax code?
Your employer must use the ND code and take tax at 45%, plus the ACC earners' levy.
What does SL mean on a tax code?
SL means you have a New Zealand student loan. It tells your employer to take student loan repayments as well as tax. It goes on the end of M, ME, SB, S, SH, ST or SA.
Sources: Inland Revenue, IR330 Tax code declaration (August 2026), Tax codes for individuals, Independent earner tax credit and Repaying my student loan. Rates checked October 2026. This is an estimate, not tax advice.