Tax & Income guide · New Zealand
Secondary Tax in New Zealand — Tax Codes Guide
Choose a New Zealand secondary tax code from total expected PAYE income, understand why a second job can look heavily taxed and know when a tailored code may help.
Reviewed 26 August 2026
Reviewed by KiwiTools editorial team — NZ calculator researchers; tax settings checked against Inland Revenue
General information only, not tax, financial, employment or legal advice. Check your tax code, agreement and current Inland Revenue guidance for your circumstances.
Key points
The second job is not punished
Secondary codes try to withhold the marginal tax likely to apply after all PAYE income is combined.
Choose the band from estimated total annual PAYE income—not the pay from the smaller job alone.
If the standard code persistently over- or under-withholds, a tailored code may be the cleaner answer.
Secondary tax-code bands for 2026/27
Choose from estimated total annual PAYE income, not the size of the second pay packet. Add SL when student-loan deductions apply.
| Check | Estimated total PAYE income | Rate before ACC | Code |
|---|---|---|---|
| SB | $0–$15,600 | 10.5% | SB or SB SL |
| S | $15,601–$53,500 | 17.5% | S or S SL |
| SH | $53,501–$78,100 | 30% | SH or SH SL |
| ST | $78,101–$180,000 | 33% | ST or ST SL |
| SA | Over $180,000 | 39% | SA or SA SL |
Why the second payslip starts at a higher-looking rate
Imagine a main job paying $62,000 and weekend work adding $8,000. If both employers started again at the bottom bracket, too little would be withheld because the first job has already used the lower bands. A secondary code treats the extra income as sitting on top of the main income.
The person’s final annual income tax is still calculated from combined taxable income. “Secondary tax” is withholding, not a permanent surcharge for working two jobs.
Read the related nz income tax brackets guideRead the related how paye works guideRead the related student loan repayment threshold guide
Choose the code from the combined annual estimate
Add expected salary, wages and other PAYE income for 1 April to 31 March. Then use Inland Revenue’s current code tool or IR330 flowchart. The familiar SB, S, SH, ST and SA bands correspond to estimated total PAYE income.
Use the main code for the highest regular PAYE source. If the weekend job grows and becomes the larger source, review both declarations instead of keeping the original labels through habit.
A refund is possible, but it is not the plan
A standard secondary band can withhold too much when income is irregular or lands close to a boundary. Inland Revenue reconciles reported income after year end, so an overpayment may be refunded. Under-withholding can leave tax to pay.
Waiting for a large refund means giving up cash flow during the year. If the mismatch is predictable, investigate a tailored tax code rather than deliberately choosing a code for the refund you hope to receive.
Student loans need their own solution
Borrowers add SL to the relevant secondary code, and secondary earnings normally face student-loan deductions without another threshold. That is separate from the income-tax rate attached to S or SH.
A tailored income-tax code cannot reduce student-loan deductions. Where the main job does not use the full threshold, the borrower may need a student-loan special deduction rate from Inland Revenue.
Frequently asked questions
Do I pay more tax overall for having a second job?
No special annual surcharge applies merely because income comes from two jobs. The secondary code aims to withhold at the rate likely to apply to combined income.
Which job should use my main tax code?
Normally the highest regular PAYE income source. Reassess if the relative earnings change.
Can I use M for both jobs?
Using two main codes can under-withhold because both employers may apply lower bands. Follow the IR330 flowchart for concurrent income.
Will secondary tax be refunded?
Only an actual overpayment is refunded after Inland Revenue assesses combined income. The whole amount withheld from the second job is not automatically returned.
When is a tailored tax code useful?
It can help where standard codes are likely to produce a material refund or bill because of multiple or unusual income sources.
Put the guide into practice
Continue with related KiwiTools calculators
Test your own numbers, compare scenarios and return to the guide to check assumptions and limitations.