Tax & Income guide · New Zealand
NZ Student Loan Repayment Threshold — 2026 Guide
Use the current New Zealand student-loan threshold by pay period, including uneven earnings, secondary jobs and the situations where an approved special rate can 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
Payroll does not wait for your annual total
The annual threshold is $24,128 for 1 April 2026 to 31 March 2027.
Main-job payroll uses $464 weekly, $928 fortnightly, $1,856 four-weekly or $2,010.66 monthly.
A high week can create a deduction even when a worker expects modest annual income, because periods are not automatically averaged.
Student-loan pay-period thresholds for the 2027 tax year
The annual threshold is $24,128 for 1 April 2026 to 31 March 2027. Payroll uses the matching period figure instead of waiting for year end.
| Check | Threshold | Repayment on $600 gross | Calculation |
|---|---|---|---|
| Weekly | $464.00 | $16.32 | 12% × ($600 − $464) |
| Fortnightly | $928.00 | Not comparable | Use fortnightly gross |
| Four-weekly | $1,856.00 | Not comparable | Use four-weekly gross |
| Monthly | $2,010.66 | Not comparable | Use monthly gross |
Match the threshold to the pay cycle
For weekly main income, subtract $464 from gross pay and apply 12% to the remaining complete dollars. At $600 gross, that gives $16.32: ($600 − $464) × 12%. A fortnightly employee must use $928 against the fortnightly gross amount instead.
Do not divide a monthly threshold by four or reuse the annual amount directly on a payslip. Inland Revenue sets specific period figures because months and weeks do not align neatly.
Read the related student loan deductions guideRead the related secondary tax guideRead the related salary after tax guide
A busy week can trigger a deduction on irregular income
Consider a casual employee earning $300 one week and $700 the next. The first week sits below $464; the second creates a deduction on $236. Payroll does not carry the unused $164 from week one forward to soften week two.
This surprises workers whose annual estimate remains close to the threshold. A deduction is based on the period result unless an approved exemption or different rule applies.
The threshold is normally used once, at the main job
Secondary salary or wages generally face 12% deductions without another threshold. The logic is that the main income source has already received the allowance.
Where main income is below the period threshold, a borrower may qualify for a special deduction rate so unused threshold can be recognised against secondary earnings. Apply through Inland Revenue; the second employer cannot make up a rate.
Annual thresholds still matter outside ordinary payroll
Self-employed income and other adjusted net income can create an end-of-year repayment obligation. That calculation is not the same as adding up what an employer should have withheld each week.
Likewise, overseas-based borrowers face different interest and repayment rules. This page is for New Zealand salary-and-wage threshold mechanics; it should not be used to plan overseas obligations.
Frequently asked questions
What is the student-loan threshold for 2026/27?
It is $24,128 for the tax year from 1 April 2026 to 31 March 2027.
What is the weekly threshold?
The main-income weekly threshold is $464.
Is the threshold based on gross or net pay?
It is applied to gross salary or wages for the relevant period, before PAYE and KiwiSaver are removed.
Does unused threshold carry to the next payday?
Not in an ordinary main-job payroll calculation. Each pay period is assessed using its matching threshold.
Does a second job receive another threshold?
Generally no. A special deduction rate may help where the main job does not use the full threshold.
Does this threshold apply to overseas borrowers?
No. Overseas-based borrowers have separate interest and repayment obligations.
Put the guide into practice
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Test your own numbers, compare scenarios and return to the guide to check assumptions and limitations.