Important: You may need to change your tax code if your circumstances change during the year. For example:
– you take out a student loan or pay it off
– start or stop being eligible to use ME or ME SL (see note 5 below)
– you have a second job and your income decreases or increases, changing the code you should be using.
Notes to help you complete this form
1. If you receive a benefit from Work and Income (other than a student allowance, NZ Super or Veteran’s Pension) you must use the
“M” tax code for this income. You must use the secondary income section on page2 to work out your tax code for any other
If you choose a secondary tax code of “S” or “S SL” and you’ll earn more from your secondary job than your benefit, you may pay
more tax than you’re required to for that job. You can apply for a tailored tax code so that the right amount of tax is deducted
- see note 9 for more information about tailored tax codes.
2. Source of income means income such as salary, wages, weekly accident compensation payments, NZ Super, Veteran’s weekly
compensation, Veteran’s Pension or student allowance.
3. You are a New Zealand tax resident in any of these situations:
• You’ve been in New Zealand for more than 183 days in any 12-month period and haven’t become a non-resident.
• You have a permanent place of abode in New Zealand.
• You’re away from New Zealand in the service of the New Zealand Government.
4. Your annual income is your total income (before tax is deducted) from all sources, from 1 April to 31 March, excluding losses carried
forward from a previous year.
5. If you or your partner are entitled to receive Working for Families Tax Credits (WfFTC) or an overseas equivalent, or if you receive
NZ Super, Veteran’s Pension or an overseas equivalent of any of these, your tax code is “M” (or “M SL” if you have a student loan).
You’re not eligible to use “ME” or “MESL”.
For more information about WfFTC go to www.ird.govt.nz
6. You may be eligible for a repayment deduction exemption on your salary and wage income if you:
• have a student loan
• are studying full-time in New Zealand
• expect to earn below the annual repayment threshold from all sources
• earn above the pay-period repayment threshold.
If you have a student loan and you choose “SB SL” or “S SL” for your tax code, you may pay more towards your student loan than
you need to. If you earn under the pay period repayment threshold from your main job, you can apply for a special deduction rate
to reduce your student loan repayment deductions on your secondary earnings.
For more information about repayment deduction exemptions and special deduction rates go to www.ird.govt.nz/studentloans
If you already have a repayment deduction exemption or special deduction rate for your student loan but your circumstances have
changed, you’ll need to update your details so we can check you’re still eligible. You can do this at www.ird.govt.nz or by calling
7. Casual agricultural workers are people engaged in casual seasonal work on a day-to-day basis, for up to three months. This includes
shearers and shearing shed-hands.
8. If you are a recognised seasonal worker or hold a work visa as foreign crew of a vessel fishing New Zealand waters, you will use the
“NSW” code. Recognised seasonal workers must be employed by a registered employer under the Recognised Seasonal Employers’
Scheme and are employed in the horticulture or viticulture industries. You must have a Recognised Seasonal Employer Limited
Visa/Permit. See www.immigration.govt.nz (search keyword: seasonal).
9. If you have a current tailored tax code certificate, enter “STC” as your tax code on page 1 and show your original tailored tax code
certificate to your employer.
A tailored tax code is a tax deduction rate worked out to suit your individual circumstances. You may want one if the regular
tax codes will result in you not paying enough tax or paying too much. For more information go to www.ird.govt.nz or contact
us on 0800 227 774. You can apply for a tailored tax code in myIR or complete a
Tailored tax code application (IR23BS)
Go to www.ird.govt.nz (search keyword: IR23BS).
10. If you need help choosing your tax code go to www.ird.govt.nz or contact us on 0800 227 774.