Secondary tax code NZ: SB, S, SH, ST and SA
A secondary tax code NZ tells the second payer which flat rate to deduct because your extra earnings may have pushed you into a higher tax bracket. Inland Revenue (IRD) uses five Inland Revenue secondary tax code letters: SB, S, SH, ST, and SA. The letter is not chosen from the second job alone. It is chosen from your estimated annual total income from all sources.
This guide is for the 2026/27 tax year (1 April 2026 to 31 March 2027). It is for a cafe barista picking up supermarket shifts, a teacher tutoring after school, and anyone on a Work and Income benefit who also has wages. Figures are working papers. GSTCalc.nz is not Inland Revenue. Ads may fund this free site. This is not tax advice.
What is the secondary tax code in NZ?
What is secondary tax code NZ in plain words: it is the tax code secondary income uses when you already have a main or highest source. Inland Revenue’s what tax code should I use page is blunt. You only have 1 main income, which is your highest income source. All other income is secondary income. Any tax code you select is based on the type and level of your expected annual income.
The NZ secondary tax code exists because each payer has no way of knowing the total amount of income you will earn in a year. Using secondary tax codes lets your payer know the right amount of tax to deduct from your secondary source of income. That helps you pay the right amount of tax, so you do not overpay during the year or end up with a tax bill at the end of the tax year (31 March).
Source: Inland Revenue secondary tax codes, what tax code should I use, and Tax code declaration IR330 (August 2026). Employer wage records and payday filing sit on the PAYE and payslips hub. Dollar take home on a chosen code sits on the PAYE calculator, which can act as a secondary tax code calculator when you pick SB, S, SH, ST, or SA. This page stays on which letter to write on IR330.
Tax code for secondary job NZ: SB, S, SH, ST, SA
The tax code for secondary job NZ is the letter that matches Inland Revenue’s secondary tax codes and rates table. The secondary tax NZ code, and the code for secondary tax, is not a penalty. Inland Revenue’s tax rates for individuals page: if you have more than one source of income, you pay secondary tax. This helps you pay the right amount of tax so you do not get a bill at the end of the year. The amount of secondary tax you pay depends on the secondary tax code you give your employer or payer.
Secondary tax code rates NZ, from Inland Revenue (before ACC levies):
| Estimated annual total income from all sources | Secondary tax code | Secondary tax code rate (before ACC levies) | With student loan |
|---|---|---|---|
| 0 to $15,600 | SB | 10.5% | SB SL |
| $15,601 and $53,500 | S | 17.5% | S SL |
| $53,501 and $78,100 | SH | 30% | SH SL |
| $78,101 and $180,000 | ST | 33% | ST SL |
| $180,001 and over | SA | 39% | SA SL |
Source: Inland Revenue tax rates for individuals and the IR330 secondary income flowchart (August 2026). The same bands appear on the about tax codes page. That Inland Revenue secondary tax code table is the live IRD secondary tax code list. Do not use a 2018 blog that still lists $14,000, $48,000, or $70,000 as the live cuts.
Pull highlight: Inland Revenue’s table header is estimated annual total income from all sources. The tax code for secondary income is not “whatever the second job pays on its own”.
Main code (highest source)
Progressive layers on that payer. IR330 flowchart: M, ME, M SL, or ME SL in the usual salary path. Inland Revenue may change an unsuitable code, including using M on 2 sources at the same time.
Secondary job tax code NZ
The tax code secondary job NZ is a flat secondary tax code rate from the first dollar on that stream. ACC earners levy still sits in PAYE for employees. Inland Revenue’s about tax codes page: all employees must pay an ACC earners levy, collected with PAYE, currently $1.75 for each $100 of income up to $156,641. The IRD secondary income tax code is still SB, S, SH, ST, or SA on that payer.
Tax code for secondary income: who else uses it
The tax code for secondary income NZ is not only a second employer. Inland Revenue’s secondary tax codes page lists pay, a benefit, pension, or other taxable payment such as Student Allowance, an ACC compensation payment, or paid parental leave. Every time you get a new source of income you must let your payer know the right tax code. If you are getting an income tested benefit, NZ Super, or Veteran’s pension, you need to give MSD a tax code. If you are getting ACC payments, let ACC know. The tax code secondary income on that extra source is still taken from total income, not from the extra job alone.
Inland Revenue: are you receiving a main benefit from MSD? The income portion of an income tested benefit from MSD is always coded as M. This means any other income must have a secondary tax code. That is the tax code secondary income path for a cleaning job beside a benefit. IR330 note 1: if you choose a secondary code of S or S SL you may earn more from your secondary job than your main benefit and pay more tax than you need to. You can apply for a tailored tax code (enter STC on IR330 if you hold a certificate).
Schedular payments are not this table. Inland Revenue: use the WT tax code for income from schedular payments, on IR330C, not IR330. That path is the Withholding and Schedular hub and the withholding tax calculator. Interest and dividends do not use a secondary tax code: the payer deducts resident withholding tax.
Tax code secondary student loan
A tax code secondary student loan is the secondary letter plus SL. Inland Revenue’s salary and wages student loan page: you must add SL to your tax code so the employer deducts repayments. The repayments depend on how much you earn and if it is your main or secondary income. A secondary tax code with student loan does not get the pay period repayment threshold on that job. Inland Revenue: the repayment threshold does not apply to secondary jobs because it has already been taken into account with your main job. This means you repay 12% of every dollar you earn from your secondary job to your student loan. Inland Revenue’s example: if you earn $200 a week before tax in a secondary job, your repayment will be $24 ($200 times 12%).
For the 2026 tax year Inland Revenue states the annual repayment threshold is $24,128, with pay period lines of $464 weekly, $928 fortnightly, $1,856 every 4 weeks, and $2,010.66 monthly. Those thresholds sit on the main SL code (M SL or ME SL), not on SH SL. If the main job earns less than the pay period repayment threshold, you can apply in myIR for a student loan special deduction rate, and Inland Revenue says that application is for people who use the SB SL or S SL tax code for the secondary job. Reapply each quarter. Dollar checks on the 12% slice can use the student loan repayment calculator.
Weekly pay before tax: $200
Rate on a secondary job: 12% of every dollar
Deduction: $200 × 12% = $24
Use case: Hamilton supermarket and cafe
Situation: Hypothetical barista’s highest source is the cafe. They pick up supermarket shifts. Expected annual PAYE income from both jobs sits between $15,601 and $53,500. Codes: cafe keeps the main IR330 code. Supermarket gets tax code secondary: S, or S SL if there is a student loan. Action: complete a new IR330 for the supermarket before the first pay. If no form is given, IR330 says the employer must deduct at the non notified rate of 45% (plus earners levy).
Use case: Wellington teacher who tutors
Situation: Hypothetical teacher’s total PAYE income from salary plus tutoring is expected between $78,101 and $180,000. Codes: school keeps the main code. Tutoring employer gets ST, or ST SL with a student loan. That is the tax code for secondary job on the smaller source, even if the hourly rate looks low. Action: if income drops or rises mid year, IR330 says you may need a new code. Hand a fresh form to the payer.
Trap: two lots of M, or picking the letter from the second job only
PersonalFinanceNZ threads treat secondary PAYE as a penalty on the second job. Inland Revenue taxes layers of total income. Using M on two jobs at the same time is the example Inland Revenue gives of a wrong code: Inland Revenue may ask the employer to change it. Become Wealth copy that treats SB as a freelance or side hustle code is wrong: SB is the 0 to $15,600 total income band. Wise copy that ties SB to the second job paying under $15,600, rather than total income from all sources, does not match Inland Revenue’s table header. Kiwi Personal Tax posts from 2018 still using $14,000, $48,000, and $70,000 are stale. MoneyHub’s ST band starting at $78,001 does not match Inland Revenue’s $78,101. Contractor invoices are not a secondary tax code: they are WT on IR330C, or income tax on an IR3 for a self employed sole trader.
What people get stuck on
r/newzealand asks if a second job is “worth it” because secondary tax looks high. Inland Revenue’s design is to stop you underpaying when two payers each start at the bottom layer. After 31 March the account is squared. Geekzone still quotes old student loan thresholds: use Inland Revenue’s $24,128 annual line for the 2026 tax year, not a $19,900 forum figure. If payroll keeps flipping your main salary to S because a tiny extra source exists, Inland Revenue’s about tax codes page says they may change an unsuitable code and notify you. Talk to Inland Revenue if you disagree. Employer payday filing still sits on PAYE and payslips. GST on a side trade is a different clock: GST Basics Guide.
IR330, 45 percent, and changing the code
The tax code secondary path always ends on paper or myIR as an IR330. Inland Revenue’s about tax codes page: if you do not give your employer an IR330, they will deduct tax from your pay at the non declaration rate of 45%. IR330 August 2026 uses the same 45 percent (plus earners levy) if sections 1, 2, and 3 are not completed. Employers must keep the completed IR330 for 7 years following the last wage payment. When an employee gives this form, the employer must change their tax code, even if they have been given different advice in the past.
If your tax code changes, give a new IR330. Inland Revenue’s example: you may move from an M SL tax code to an M tax code when you pay off your student loan. What tax code should I use also lists taking out a student loan, a change in expected annual income, changing jobs, or starting a second job as reasons to choose a new code. Follow the flowchart on pages 2 and 3 of IR330, or Inland Revenue’s tax code tool on the what tax code should I use page.
Frequently asked questions
What is the tax code for secondary income in NZ?
There is no single code. Inland Revenue’s secondary tax codes and rates table uses estimated annual total income from all sources: SB 10.5% (0 to $15,600), S 17.5% ($15,601 and $53,500), SH 30% ($53,501 and $78,100), ST 33% ($78,101 and $180,000), SA 39% ($180,001 and over), before ACC levies.
What is the tax code for a secondary job if I have a student loan?
Add SL to the secondary code: SB SL, S SL, SH SL, ST SL, or SA SL. Inland Revenue says the repayment threshold does not apply to secondary jobs, so you repay 12% of every dollar from that job. IRD’s example: $200 a week before tax times 12% equals $24.
What is the tax code for secondary tax if I get a main benefit?
Inland Revenue: the income portion of an income tested benefit from MSD is always coded as M. Any other income must have a secondary tax code. IR330 note 1: if you choose S or S SL you may earn more from the secondary job than the benefit and pay more tax than you need; you can apply for a tailored tax code.
Is secondary tax extra tax on a second job?
No. Inland Revenue taxes each layer of your total annual income at a different rate. A secondary code tells the second payer which layer to use because that payer cannot see your other jobs. After 31 March, Inland Revenue squares PAYE against your actual total. Overpay and you can get a refund. Underpay and you can get a bill.
Last verified 14 September 2026 against Inland Revenue secondary tax codes, about tax codes, what tax code should I use, tax rates for individuals, Tax code declaration IR330 (August 2026), student loan repayments from salary or wages, and student loan special deduction rate. GSTCalc.nz is a free New Zealand publisher of tax calculators and guides. Ads may fund the site. We are not Inland Revenue and this is not tax advice.
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