If you have more than one source of income — a second job, or a mix of wages and other earnings — you use a secondary tax code on the non-main income. It's one of the most misunderstood parts of the NZ tax system.
Secondary tax codes and rates (2026/27)
The right secondary code depends on your total income from all sources:
| Code | Total income | Rate |
|---|---|---|
| SB | Up to $15,600 | 10.5% |
| S | $15,601 – $53,500 | 17.5% |
| SH | $53,501 – $78,100 | 30% |
| ST | $78,101 – $180,000 | 33% |
| SA | Over $180,000 | 39% |
The big myth: "secondary tax takes more"
Many people believe a second job is taxed at a punishing rate. It isn't. Secondary tax exists because your tax-free-ish lower bands are already used up by your main job. Your second income starts at your marginal rate — so it's deducted at a higher flat rate, but you don't pay more tax overall than if it were all one income. If too much is deducted, you get it back at the end of the tax year.
How to avoid over- or under-paying
- Pick the code that matches your total income, not just your second job's income.
- If your income varies, you can apply to IRD for a special tax code (STC) for a more accurate rate.
- Inland Revenue automatically squares things up after 31 March — you'll get a refund if you overpaid.
Check the impact on your take-home
Use the NZ Pay Calculator and choose a secondary tax code to see exactly what's deducted, so there are no surprises on payday.