Tax codes and your end-of-year tax refund or bill

Inland RevenueVerified 14 Oct 2026Official pages checked daily

If you get wages, a benefit or a pension in New Zealand, you must tell the payer your tax code on an IR330 form. The payer uses this code to take tax from each payment. If you choose the wrong code, you may have to pay more tax at the end of the year, or you may get a refund. The tax year ends on 31 March. If tax has already been taken from all your income, Inland Revenue (IRD) works out your tax for you and sends you an income tax assessment. If you have income that has not been taxed, you must file an IR3 return yourself.

Key facts

Tax code for your main income: Use 1 main tax code for your main income (the one that pays the most). This is usually M. If you have a student loan, use M SL.¹
When you can use ME: You have only 1 job and earn between NZ$24,000 and NZ$70,000 a year; or your main job pays more than NZ$24,000 and all your income together is between NZ$24,000 and NZ$70,000. Use ME for your main job (ME SL if you have a student loan).³
When you cannot get IETC (cannot use ME): You or your partner get Working for Families; or you get an income-tested benefit, NZ Super, Veteran's Pension, or a similar payment from overseas.²
IETC amount (the tax credit linked to the ME code): Yearly income before tax of NZ$24,000–NZ$66,000: NZ$10 a week. NZ$66,001–NZ$70,000: reduced by 13 cents for every NZ$1 over NZ$66,000. Up to NZ$520 a year.²
Tax codes for secondary income (based on your total income for the year from all sources): NZ$0–NZ$15,600: SB (10.5%). NZ$15,601–NZ$53,500: S (17.5%). NZ$53,501–NZ$78,100: SH (30%). NZ$78,101–NZ$180,000: ST (33%). NZ$180,001 and over: SA (39%). These rates do not include the ACC levy.¹
If you do not give an IR330: Your employer must take tax at the non-declaration rate of 45%.¹
Income tax rates: NZ$0–NZ$15,600: 10.5%. NZ$15,601–NZ$53,500: 17.5%. NZ$53,501–NZ$78,100: 30%. NZ$78,101–NZ$180,000: 33%. NZ$180,001 and over: 39%.¹
ACC earners' levy: NZ$1.75 for every NZ$100 of income, on income up to NZ$156,641. It is taken together with PAYE.¹
Tax year: 1 April to 31 March the next year.⁴
When the automatic income tax assessment arrives: If you use myIR: between the last weekend of May and the end of July.⁴
When to pay a tax bill: Most people must pay by 7 February in the year after they get the bill. For example, a bill for the tax year 1 April 2024 – 31 March 2025 is due on 7 February 2026.⁴
When you must file an IR3: You had more than NZ$200 (before tax) of income in the tax year that IRD does not know about, even if it was only for part of the year.⁵
IR3 due date: 7 July (unless you have a tax agent or an approved extension).⁵

Who is this for, and what are the requirements?

You must give the payer a tax code if you get taxable income such as a salary or wages, a Work and Income benefit, NZ Super, Veteran's Pension, Student Allowance, ACC compensation or paid parental leave.
You need a separate IR330 for each source of income. You can choose only 1 tax code for each source.
Your main job (the one that pays the most) uses a main tax code (M, ME and so on). All your other income uses a secondary tax code (SB, S, SH, ST, SA).
ME is only for New Zealand tax residents who are in the IETC income range and whose family does not get Working for Families or the other payments listed above.
If tax has already been taken from all your income (wages, bank interest, PIE income such as KiwiSaver, NZ Super, benefits and so on), you usually do not need to file a return. IRD works out your tax automatically.
If you have income that has not been taxed (for example, rental income or self-employed income) and it is more than NZ$200, you must file an IR3. If you are not a New Zealand tax resident, you file an IR3NR instead.

How do I do it? Steps and process

Work out which income is your main income
You can have only 1 main income. It is the one that pays you the most. Your main income usually uses M. If you qualify for IETC, use ME. If you have a student loan, add SL (M SL or ME SL).
Choose a secondary tax code based on your total income for the year
If you have two jobs, or a job plus a benefit or pension, your second income uses a secondary tax code. Do not choose it based on how much the second job pays. Instead, estimate your total income for the year from all sources, then use the SB / S / SH / ST / SA table to choose.
Fill in an IR330 and give it to the payer
Download the Tax code declaration - IR330 from the IRD website (your employer or Work and Income can also give you one). Fill it in and give it to your employer. If you get a benefit, NZ Super, Veteran's Pension or Student Allowance, give it to Work and Income. Pages 2 and 3 of the form have a flowchart to help you choose your tax code. The IRD website also has an online tool.
Change your tax code when your situation changes
Fill in a new IR330 and give it to the payer if you start or finish paying a student loan, expect your yearly income to change, change jobs or start a second job, or start or stop qualifying for ME. If your main job pays less than NZ$24,000 a year but your total income is between NZ$24,000 and NZ$70,000, you can get IETC at the end of the year, or apply for a tailored tax code.
Wait for your income tax assessment after the tax year ends
The tax year ends on 31 March. From April to late May, employers, banks and investment providers send your income details to IRD. If you use myIR, you usually get your income tax assessment between the last weekend of May and the end of July. If you do not use myIR, a letter will come by post a bit later. When you get it, check it in myIR. If something is missing or wrong, tell IRD so they can correct it.
Get your refund or pay your tax bill
If you have a refund, IRD pays it when they process your assessment. The timing is different for each person. If you have tax to pay, most people must pay it by 7 February in the year after they get the bill.
File an IR3 yourself if you need to
If you had more than NZ$200 of untaxed income, you must file an Individual income tax return - IR3. If you use myIR, you will get an email to remind you. If you also have income that payers report to IRD (such as wages, interest or KiwiSaver), wait until June when all the information is in before you file. If you do not have a tax agent or an extension, file by 7 July at the latest.

What documents do I need?

Tax code declaration - IR330: one for each source of income, given to your employer or Work and Income
Your IRD number
A myIR account: to see your income tax assessment, correct details and file an IR3
If you file an IR3: the amounts and sources of your untaxed income, and records of expenses you can claim

What should I watch out for?

The most common mistake is using M for two jobs. If IRD sees you using M for two income sources at the same time, they will tell your employer to change your tax code and will also tell you. If you do not change it, you will probably have tax to pay at the end of the year.
Whether you choose S or SH for a second job depends on where your total income for the year falls, not on how much the second job pays.
If you use ME and your family starts getting Working for Families, or your income for the year will go over NZ$70,000, change back to M (or M SL). IETC works by whole months: if you get Working for Families or one of the other listed payments at any time in a month, you cannot get IETC for that whole month.
If you do not give an IR330, your employer will take 45% tax. Give it to your employer as soon as you start the job.
If you often have tax to pay or get a large refund at the end of the year, think about applying for a tailored tax code (STC).
To get your refund sooner, check that your email, address and bank account details in myIR are up to date.
If you have untaxed income such as rental income, self-employed income or overseas income, you must file an IR3 for that year, even if the income stopped part way through the year.
This guide is based only on official IRD information. It is not personal tax advice. If you are unsure, use IRD's online tools or contact IRD.

What has changed recently?

2024-07-31
The income range for IETC (ME tax code) is now NZ$24,000 to NZ$70,000. Older information showing an upper limit of NZ$48,000 is out of date.Source: ird.govt.nz ↗

Common questions

I have two jobs. Should I use tax code S or SH for my second job?

It depends on your total income for the year from all sources, not on how much the second job pays. Use S if your total income is NZ$15,601–NZ$53,500. Use SH if it is NZ$53,501–NZ$78,100. Your main job (the one that pays the most) uses a main code such as M. Pages 2 and 3 of the IR330 have a flowchart to help you choose.

What is the difference between the M and ME tax codes, and can I use ME?

M is the usual code for your main income. ME also gives you the IETC tax credit of up to NZ$520 a year. You can use ME if you are a New Zealand tax resident and your income is between NZ$24,000 and NZ$70,000 a year. You cannot use it if your family gets Working for Families, or you get an income-tested benefit, NZ Super, Veteran's Pension or a similar overseas payment.

I didn't fill in an IR330 when I started my job and 45% tax was taken from my pay. What can I do?

Fill in a Tax code declaration - IR330 and give it to your employer as soon as possible. Without it, your employer must take tax at the non-declaration rate of 45%. After the tax year ends on 31 March, IRD works out your tax. If too much tax was taken, you may get a refund.

Does Inland Revenue refund my tax automatically after 31 March, and when will I get it?

Yes, if tax has already been taken from all your income, IRD works out your tax automatically. If you use myIR, your income tax assessment usually comes between the last weekend of May and the end of July. Without myIR, a letter comes by post a bit later. IRD pays any refund when they process your assessment, and the timing is different for each person.

I got a tax bill from IRD. When do I have to pay it?

Most people must pay by 7 February in the year after they get the bill. For example, a bill for the tax year 1 April 2024 – 31 March 2025 is due on 7 February 2026. Check your assessment in myIR first, and tell IRD if something is missing or wrong.

My family gets Working for Families. Can I still use the ME tax code?

No. If you or your partner get Working for Families, you cannot get IETC, so you cannot use ME. Fill in a new IR330 and change back to M (or M SL if you have a student loan). IETC works by whole months, so getting Working for Families at any time in a month means no IETC for that whole month.

I have rental income or I'm self-employed. Do I need to file an IR3?

Yes, if your untaxed income, such as rental or self-employed income, was more than NZ$200 in the tax year. You must file an Individual income tax return - IR3 by 7 July, unless you have a tax agent or an approved extension. If you also have wages, interest or KiwiSaver, wait until June before you file. If you are not a New Zealand tax resident, file an IR3NR instead.

Do I need to apply for a tax refund in New Zealand?

Usually no. If tax has already been taken from all your income, IRD works out your tax automatically and pays any refund when they process your assessment. To get it sooner, keep your email, address and bank account details in myIR up to date. If you had more than NZ$200 of untaxed income, you must file an IR3 yourself.

Answers are based on the verified content of this page — the official source always prevails.

Where can I check the official information?

About tax codesInland Revenue · ird.govt.nz
Independent earner tax credit (IETC)Inland Revenue · ird.govt.nz
Getting the independent earner tax credit if you earn salary or wagesInland Revenue · ird.govt.nz
Timelines at the end of the tax yearInland Revenue · ird.govt.nz
Individual income tax return - IR3Inland Revenue · ird.govt.nz

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