Code picked by
combined income
all jobs, whole tax year
Most common
S / SH
17.5% / 30%
No code given
45%
no-declaration rate
ACC levy
1.75%
on top, every job
2026/27 tax year (1 April 2026 to 31 March 2027). Codes and rates checked against Inland Revenue in September 2026.
Check the tax on your combined income
Enter both jobs added together to see the real tax, then compare with what both payslips take.
Secondary tax codes for 2026/27
| Combined annual income | Code | Tax taken from the second job |
|---|---|---|
| $0 to $15,600 | SB | 10.5% + ACC levy |
| $15,601 to $53,500 | S | 17.5% + ACC levy |
| $53,501 to $78,100 | SH | 30% + ACC levy |
| $78,101 to $180,000 | ST | 33% + ACC levy |
| $180,001 and over | SA | 39% + ACC levy |
Source: Inland Revenue, tax codes for individuals. Add "SL" if you have a student loan.
Why a second job looks overtaxed (and when it really is)
Your primary code (M, or ME if you qualify for the independent earner tax credit) runs your main job through the full bracket ladder. The first $15,600 is taxed at 10.5%, the next slice at 17.5%, and so on. The second employer doesn't know what your main job pays. So the secondary code skips the ladder and applies the rate for where your combined income tops out.
Four scenarios, income tax only, calculated with our 2026/27 NZ engine:
| Scenario | Jobs | Code | Taken in the year | Tax owed | Difference |
|---|---|---|---|---|---|
| Right code, higher combined income | $60,000 + $15,000 | SH | $14,721 | $14,721 | Exact |
| Right code, low main job | $12,000 + $10,000 | S | $3,010 | $2,758 | $252 overpaid |
| Code too low (chose S instead of SH) | $60,000 + $15,000 | S | $12,846 | $14,721 | $1,875 underpaid |
| No tax code declaration (ND) | $60,000 + $15,000 | ND | $16,971 | $14,721 | $2,250 overpaid |
The first row is the common case. SH takes 30% of the second job, which feels like a lot, but it is exactly the tax on those dollars. Nothing to fix.
The second row is genuine overtaxing. A student or part-timer earning $12,000 in the main job doesn't use the whole 10.5% band, but the second job is still taxed at 17.5%. That costs $252 until the year-end refund, or a tailored tax code fixes it now.
The last two rows are code mistakes. Choosing S when your combined income is in SH territory leaves you with a bill of about $1,875. Giving no code means 45% and $2,250 of your money held until the refund arrives.
How to fix secondary tax that's wrong
| Problem | Fix |
|---|---|
| No code, or ND on your payslip | Give your employer an IR330 today. Future pays switch to the right code; the 45% already taken comes back after 31 March. |
| Combined income moved into a new band (a raise, more shifts) | Update the secondary code on an IR330 so you don't face a bill. |
| Main job under $15,600, or very uneven hours | Apply for a tailored tax code in myIR (IR23BS). You get a certificate with your own rate. |
| Student loan deductions look too high | Ask about a special deduction rate if your total income is below the repayment threshold. |
| Wrong job marked as primary | Move M or ME to the higher-paying job and a secondary code to the other. |
Whatever happens in the year, Inland Revenue squares it up after 31 March. If all your income had PAYE taken, it assesses you automatically and refunds any overpayment or sends a bill (about tax codes). The code only decides whether you get the money back during the year or in winter.
For employers and agencies taking on second-job staff
- Get an IR330 before the first pay run. Without it you must deduct at 45%, and new casual staff often quit over the first payslip.
- You can't choose the code for them, but you can point them to IRD's code guide or this page.
- A tailored tax code certificate overrides the standard code. Apply it from the next pay after you receive it.
Secondary tax questions
Which secondary tax code should I use for my second job?
Add up what you expect to earn from all your jobs this tax year (1 April to 31 March). Up to $15,600 use SB, $15,601 to $53,500 use S, $53,501 to $78,100 use SH, $78,101 to $180,000 use ST, and above $180,000 use SA. Put your primary code, M or ME, on the job that pays the most.
Why does my second job look overtaxed?
Because a secondary code takes a flat rate from every dollar, with no low bands. Your main job already used those. If you earn $60,000 and $15,000, the second job's 30% looks brutal next to the main job's average rate, but 30% is exactly what you pay on those extra dollars. It is only genuinely overtaxed when your main job pays less than $15,600 a year, or when your code is wrong.
What happens if I don't give my second employer a tax code?
They must deduct at the no-declaration rate of 45% (ND), plus ACC levy. You get the excess back after the tax year ends, but that can be months of your money. Fill in an IR330 on your first day, or change it in myIR.
Will I get a refund if I paid too much secondary tax?
Yes. If all your income had PAYE deducted, Inland Revenue works out your tax automatically after 31 March and refunds any overpayment, usually from late May. Check your bank account details are up to date in myIR.
Can I get a lower rate on my second job?
Yes, with a tailored tax code. If the standard codes will take too much (or too little), apply in myIR or on an IR23BS. Inland Revenue sends a certificate with your own rate, usually within 10 working days, and you give it to your employer.
I have a student loan. What changes on a second job?
Use the secondary code with SL, for example S SL. Student loan repayments on secondary income are taken at 12% of everything you earn there, with no threshold, because the repayment threshold is applied in your main job. A special deduction rate can lower it if your total income is under the threshold.
My second job pays more than my first. Which one is primary?
Whichever you choose, but put M or ME on the one that pays the most. The primary code gives the low bands to that job. Getting it the wrong way round usually means more tax taken during the year.
Does secondary tax apply to contractors or self-employed income?
No. Secondary codes are for salary and wages from a second employer. Schedular payments to contractors use their own withholding rate (IR330C), and self-employed income is taxed through your return, often with provisional tax.
Methodology and limits
Codes, thresholds and the 45% no-declaration rate come from Inland Revenue's pages on tax codes, secondary tax codes and tailored tax codes, checked in September 2026. Tax figures are PayMetric Labs' own modeled estimates from our 2026/27 engine (10.5% to 39% brackets).
The scenarios treat each job as a steady full-year income and leave out ACC levy (a flat 1.75% on both jobs), KiwiSaver, student loan and the independent earner tax credit. Real PAYE is worked out per pay period, so payslips can differ slightly. This is general information, not tax advice.