How much will I repay?
Your employer works it out on each payslip. If your pay for that week, fortnight or month is over the threshold, they take 12% of the part above it:
| You’re paid | Threshold each pay |
|---|---|
| Weekly | $464 |
| Fortnightly | $928 |
| Monthly | $2,010.66 |
Example: you earn $1,000 a week. You repay 12% of the part over the $464 threshold:
| Slice of income | Rate | Amount due |
|---|---|---|
| First $464 (the threshold) | 0% | $0.00 |
| The other $536 | 12% | $64.32 |
| Repaid this week | $64.32 | |
Over a whole year:
| Salary | Repaid a year | About a fortnight |
|---|---|---|
| $50,000 | $3,104.64 | $119 |
| $60,000 | $4,304.64 | $166 |
| $80,000 | $6,704.64 | $258 |
The $24,128 threshold has been frozen, so it’s the same as last year. If you earn $24,128 or less, you don’t have to make repayments from your pay.
What about a second job?
On a second job you use a secondary code with SL (for example S SL). Then 12% of all your pay from that job goes to your loan, with no threshold, because the threshold is already used up by your main job.
If that takes too much, for example because your main job pays less than the threshold, you can ask IRD for a special deduction rate that fits your total income.
Other income
If you have income without SL deductions, such as self-employed profit, rent or interest, you may owe an end-of-year repayment on it, which IRD works out after the tax year ends. Self-employed borrowers may need to pay during the year too.
Living overseas
If you go overseas for more than 184 days, the rules change:
- Interest is charged, at 5.6% a year from 1 April 2026.
- Repayments are a fixed yearly amount set by your balance: $1,000 if you owe $1,000 to $15,000, rising by $1,000 for each $15,000 more, to $5,000 if you owe over $60,000. A balance under $1,000 is due in full.
- They’re due in two halves, on 30 September and 31 March.
Tell IRD when you leave, and keep your contact details up to date in myIR. Missed repayments attract late payment interest.
Tell your employer
Make sure your tax code includes SL. If it doesn’t, you won’t repay through your pay, and IRD may ask you to pay what you owe later.
See it in your pay
Turn on the student loan option in our PAYE calculator to see your take-home pay after repayments, or see how long your loan will take to clear with the student loan calculator. For the other codes, see NZ tax codes explained.