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Secondary tax calculator: the right code for a second job
Enter both incomes. The calculator picks the secondary code that matches your total income and shows what the second job pays after tax, ACC and KiwiSaver.
Reviewed by Radif Partners
Tax code for the second job: SH
$187 per week
second job paid at 30.0 % + ACC · total income $75,000
| Gross per week | $288 |
| PAYE (tax code SH) | − $87 |
| ACC earners’ levy (1.75 %) | − $5 |
| KiwiSaver (3.5 %) | − $10 |
| Take-home per week | $187 |
| Take-home per year | $9,713 |
| Employer KiwiSaver $525 − ESCT $55 | $470 |
| Government contribution (25 c per $1, up to $260.72) | $131 |
| Employer cost per year (salary + KiwiSaver) | $15,525 |
Inland Revenue rates for 2026-27: 10.5 % to 39 %, ACC 1.75 % up to $156,641, KiwiSaver default 3.5 %. PAYE is annualised; Inland Revenue’s tables can differ by a few cents per pay. Estimates only, see the methodology.
When you have two jobs, only one can use the main M or ME code. The second uses a secondary code, which taxes all of its income at one flat rate chosen from your total income across both jobs. With $60,000 from a main job and $15,000 from a second, total income is $75,000, which falls in the 30 % band, so the right code is SH. The second job then pays $4,500 of tax on $15,000, plus $263 of ACC. That matches the tax the second income actually adds to your year, $4,500, because every dollar of it sits in the 30 % band. The calculator makes the same choice from your two incomes and shows the take-home from the second job for each pay. Choosing a code that is too low, often S when SH is due, is the most common cause of an end-of-year tax bill for people with two jobs; choosing one that is too high leads to a refund, but ties up your money for months.
Secondary codes in practice
| Main job | Second job | Code | Tax deducted on second job | Tax it really adds | Difference |
|---|---|---|---|---|---|
| $20,000 | $8,000 | S | $1,400 | $1,400 | $0 |
| $45,000 | $10,000 | SH | $3,000 | $1,938 | $1,063 |
| $60,000 | $15,000 | SH | $4,500 | $4,500 | $0 |
| $70,000 | $20,000 | ST | $6,600 | $6,357 | $243 |
| $150,000 | $25,000 | ST | $8,250 | $8,250 | $0 |
A difference close to zero means the code fits. It is not zero when your total income straddles a threshold: part of the second income is then taxed at a lower rate in reality than the flat code assumes. In those cases a tailored tax code avoids the over-deduction.
Changing codes during the year
If your hours change, update the IR330 with each employer; the new code applies from the next pay. Deductions already made are squared up after 31 March. If you have a student loan, both jobs need the SL suffix, and the secondary job repays 12 % of all its earnings, since the threshold is used by the main job. The tax codes guide lists every code, including those for students and casual agricultural workers.
Questions people ask
Which secondary tax code should I use in NZ?
The one that matches your total annual income from all jobs: SB up to $15,600, S from $15,601 to $53,500, SH from $53,501 to $78,100, ST from $78,101 to $180,000 and SA above. Each code applies a flat rate, 10.5 %, 17.5 %, 30 %, 33 % or 39 %, to the second job, plus the ACC levy. Add SL if you have a student loan.
Why is my second job taxed so much?
Because your main job has already used the lower tax bands. With $60,000 from a main job, every extra dollar falls in the 30 % band, so the second job is taxed at 30 % with the SH code. That is the correct rate for that income, not a penalty; on $15,000 the tax is $4,500.
What is a tailored tax code?
A rate calculated by Inland Revenue for your situation when the standard secondary codes would deduct too much or too little, for example when your combined income is just above a threshold or your hours vary a lot. You apply through myIR, and Inland Revenue gives you a certificate with the rate to pass to your employer.
Related calculators and guides
Sources
Written by Radif Partners
Publisher of payroll calculators and practical guides · New Zealand PAYE, KiwiSaver and ACC
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Rates for 2026, last checked on