How do I choose my code?
When you start a job, you fill in a tax code declaration (form IR330) and give it to your employer. Answer the questions on the form and it tells you which code to use.
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1 Is this job your main source of income?
- Yes → Go to question 2
- No → Use a secondary code (SB, S, SH, ST or SA), picked by your total income
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2 Do you earn $24,000 to $70,000 a year, with no Working for Families, benefit or NZ Super?
- Yes → Your code is ME
- No → Your code is M
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3 Do you have a student loan?
- Yes → Add SL to your code, e.g. M SL or S SL
- No → Keep the code you have
Codes for your main job
| Code | Use it if… |
|---|---|
| M | This is your main or only job |
| ME | As M, and you qualify for the independent earner tax credit |
| M SL | As M, and you have a student loan |
| ME SL | As ME, and you have a student loan |
ME gives you an extra $10 a week back if you earn between $24,000 and $70,000 a year and don’t get Working for Families, a benefit or NZ Super. Not sure if you qualify? Use M, and you’ll get the credit after the tax year ends if you’re entitled to it. Read more in the IETC explained.
Codes for a second job
Your second job uses a secondary code, picked by your total yearly income from all your jobs. Each code takes a flat rate from every dollar, including the ACC levy:
| Code | Total income from all jobs | Rate taken |
|---|---|---|
| SB | Up to $15,600 | 12.25% |
| S | $15,601 to $53,500 | 19.25% |
| SH | $53,501 to $78,100 | 31.75% |
| ST | $78,101 to $180,000 | 34.75% |
| SA | Over $180,000 | 40.75% |
With a student loan, add SL (for example S SL), and another 12% is taken for loan repayments.
What if I use the wrong code?
You’ll pay too much or too little tax during the year. After the tax year ends, IRD works it out: you’ll get a refund, or a bill if you didn’t pay enough. You can give your employer a new IR330 at any time to fix it.
If you don’t give your employer a code at all, they must use ND (no declaration), which takes 46.75% of your pay. So it’s worth filling in the form straight away.
When the standard codes don’t fit
A secondary code takes a flat rate from every dollar, which can be too much or too little. For example, if your second job takes your total income just over a threshold, the higher secondary rate applies to all of that job’s pay. You can apply to IRD for a tailored tax code with a rate that fits your total income.
A few other codes are for special cases, such as CAE for casual agricultural workers, EDW for election day workers and WT for schedular payments to contractors. If you’re on NZ Super or a benefit, you give Work and Income a tax code too: M if it’s your main income, or a secondary code if your job is.
See what your code means for your pay
Our PAYE calculator lets you choose tax code M or ME and add a student loan. For all the rates, see New Zealand tax rates 2026–27.