New Zealand Secondary Tax Calculator
2026/27 tax year • PAYE • ACC • Student Loan • KiwiSaver
💡 Deducted from gross pay. Employer minimum contribution also 3.5% for default members.
ℹ️ Primary income uses progressive PAYE. Side income uses flat secondary rate.
Adds up to $521.43/year if you contribute $1,042.86+ annually.
What is my secondary tax code?
In New Zealand, if you earn income from more than one source—such as a side hustle, a part‑time job, or freelancing on top of your main employment—you generally need to use a secondary tax code for that extra income.
The IRD uses these codes to estimate the correct amount of tax to deduct from your second job, helping you avoid a large tax bill (or unexpected underpayment) at the end of the year. To find your code, you look at your total expected income from all sources for the tax year.
For 2026, the secondary tax codes are:
- SB: Combined income up to $15,600 (taxed at 10.5%)
- S: Combined income between $15,601 and $53,500 (taxed at 17.5%)
- SH: Combined income between $53,501 and $78,100 (taxed at 30%)
- ST: Combined income between $78,101 and $180,000 (taxed at 33%)
- SA: Combined income over $180,001 (taxed at 39%)
Note: If you have a student loan, simply add “SL” to the end of your code (for example, SH SL). This tells your employer to deduct student loan repayments as well as PAYE tax.
Why am I taxed so much on my second job?
It often feels like you are being penalised for working hard, but a secondary tax code is not a penalty. New Zealand uses a progressive tax system, which means the more you earn, the higher your tax rate becomes on the top portion of your income.
Because your primary employer already uses up the lower, cheaper tax brackets (like the 10.5% and 17.5% tiers), the income from your side hustle usually sits entirely in a higher tax bracket. The flat rate applied to your secondary code is simply IRD’s way of making sure you pay the correct progressive rate on that top slice of income. (If you want to see how this progressive system affects your main salary, check out our [Link: 2026 Income & Tax Calculator]).
Will I get a tax refund for my side hustle?
You may get a refund, especially if your secondary tax code causes a slight overpayment across the year. Secondary codes apply a flat percentage to your second income, which does not always line up perfectly with the exact progressive tax brackets once everything is added together.
As a result, many people end up paying a little too much tax on their side income during the year. When the tax year ends on 31 March, any overpayment is calculated and may be refunded to you. Enter your primary and side hustle income into the calculator above to reveal your estimated end-of-year refund.
Disclaimer: The information and calculator on this page are for general educational purposes only and are based on current Inland Revenue guidance about New Zealand tax codes and rates. They do not take into account your full personal circumstances and are not financial or tax advice. For advice about your specific situation, tax code, or potential refund, you should contact a qualified tax professional or Inland Revenue directly.