Secondary tax codes 2026–27
| Total income (all jobs) | Code | Rate | With ACC |
|---|---|---|---|
| $0 – $15,600 | SB | 10.5% | 12.25% |
| $15,601 – $53,500 | S | 17.5% | 19.25% |
| $53,501 – $78,100 | SH | 30% | 31.75% |
| $78,101 – $180,000 | ST | 33% | 34.75% |
| Over $180,000 | SA | 39% | 40.75% |
Worked example: $65,000 main job + $15,000 second job
Combined income is $80,000, which lands in the ST band. The second job is taxed at 33% ($4,950) plus the ACC levy ($262.50), so you keep $9,787.50 a year — $188.22 a week — from the second job. It looks steep, but it's the same 33% your main job's top slice pays; at year-end IRD squares it up and refunds any overpayment.
Frequently asked questions
Am I taxed twice on a second job?
No. Secondary tax is a flat rate chosen so your total income is taxed roughly correctly across both jobs. If too much was deducted, IRD refunds the difference after the end of the tax year — you're never taxed twice on the same dollar.
How do I choose my secondary tax code?
Add up your expected income from ALL jobs for the year. Up to $15,600 total use SB, $15,601–$53,500 use S, $53,501–$78,100 use SH, $78,101–$180,000 use ST, and over $180,000 use SA. This calculator picks the code for you.
Why does my second job look taxed so heavily?
Because the flat secondary rate applies from the first dollar — there's no low-rate band left, since your main job already uses it. A 33% deduction on a side job usually means your combined income sits in the 33% band, which is correct, not a penalty.
Do I pay student loan on a second job?
Yes, if you have a loan, 12% is deducted from every dollar of secondary income — the $24,128 threshold only applies once, to your main income. Use an SL secondary code (like S SL or ST SL).
What if I pick the wrong code?
Too high a code means a refund after year-end; too low means a tax bill. IRD may also write to you mid-year suggesting a better code if your deductions look off.
Rates checked against official sources on 1 November 2026: IRD tax rates for individuals and IRD ACC earner's levy rates. See how we calculate for the full method and update log.