Secondary Tax Rate in New Zealand: A Simple Guide for Employees

New to New Zealand’s tax system? If you’ve got more than one job or income stream, this guide will help you understand the secondary tax rate — what it is, why you’re taxed more on your second job, and how to get your money back if you overpay.

🔍 What Is the Secondary Tax Rate?

In NZ, your first job uses a primary tax code, which applies tax credits. But any income beyond that — like from a second job or pension — is taxed using a secondary tax code, with higher rates. This is to avoid underpaying total tax across all sources. Try our Advanced PAYE Calculator to work out your secondary income tax!

📈 2024 Secondary Tax Codes & Rates

These rates apply from 31 July 2024 and remain valid unless IRD announces changes:

Tax Code	Income Range (NZD)	Tax Rate
SB	Up to $14,000	10.5%
S	$14,001 – $48,000	17.5%
SH	$48,001 – $70,000	30%
ST	$70,001 – $180,000	33%
SA	Over $180,000	39%

💡 Example: How Much Tax Do You Pay?

Let’s say you work full-time and earn $70,000/year. You also tutor part-time and earn $30,000/year from that. Because your first $70,000 is already taxed under your primary code, the $30,000 from your second job is fully taxed under the ST rate: 33%.

Calculation:

$30,000 × 33% = $9,900 tax withheld on your second income

🧾 What If You Paid Too Much Tax?

If your second job withheld too much tax (for example, if your income changed mid-year), you may be eligible for a refund.

Here’s how to check and claim your refund:

Go to IRD’s official site and log into your MyIR account.
After the tax year ends (March 31), check your “Income Summary”.
If overpaid, IRD will often calculate this automatically and notify you.
Request your refund online. IRD usually pays it within a few business days.

💡 No accountant required. It’s free and beginner-friendly.

FAQs

Do I get taxed twice if I have two jobs?
No, but your second job is taxed higher since it doesn’t receive tax credits.
What if I’m not sure which tax code to use?
Use IRD’s tax code finder.
Can I change my tax code later?
Yes, by submitting a new IR330 form to your employer.

Conclusion

Don’t let the secondary tax rate confuse you. Use the right tax code, check your total income yearly, and get your refund if you overpay. IRD’s system is made for everyday Kiwis — no tax degree required.

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📌 About the Author

Kiwi Money Matters is written and maintained by a New Zealand-based writer with hands-on experience in finance and accounting since 2015.

All posts are personally researched, written to ensure clarity and trustworthiness for everyday Kiwis.

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