New Zealand tax tool

Student Loan Repayments Calculator NZ

Use this NZ student loan repayment calculator to estimate annual repayments above the New Zealand repayment threshold for NZ-based borrowers.

How student loan repayments work in NZ

Your student loan repayments are based on how much you earn above the repayment threshold - not your full income. The threshold is $24,128 per year ($464 per week). You repay 12 cents for every dollar you earn above that.

IRD has frozen the threshold at $24,128 indefinitely. It will not increase with inflation each year, which means over time more of your income will fall above the threshold as your pay rises.

Student loans in New Zealand are interest-free as long as you live here. Interest only applies if you move overseas.

IRD also charges a $40 annual administration fee on all student loans.

Repayment threshold$24,128 per year

Repayment rate12% above threshold

Interest rate (NZ-based)0%

Employees - how repayments are deducted

If you are an employee your employer deducts repayments automatically through PAYE. You do not need to calculate or pay anything yourself. Use the SL version of your tax code - M SL for your main job, or ME SL if you qualify for the independent earner tax credit.

If you have a second job, the repayment threshold does not apply to that job - it has already been accounted for in your main job. Your employer will deduct 12% of every dollar from your second job's income, with no threshold applied.

Self-employed - how repayments are calculated

If you are self-employed you pay your student loan repayments when you file your IR3 tax return at the end of the year. IRD calculates your repayment obligation based on your adjusted net income - your self-employment income after expenses, plus any other income that is not salary or wages.

You have an end-of-year repayment obligation if your adjusted net income is $500 or more and your total income is $500 or more above the $24,128 annual threshold.

Official IRD guidance

Check the official IRD guidance for the latest published rules, thresholds, timing, and definitions that apply to Student Loan Repayments.

Open official guidance www.ird.govt.nz/student-loans

Disclaimer

This calculator provides estimates only and does not replace official IRD calculations.

Uses the NZ-based borrower repayment threshold.
Assumes the borrower is interest-free in New Zealand.
Annual estimate only.

Frequently asked questions

What is the student loan repayment threshold for 2026?

The threshold is $24,128 per year - $464 per week. You only repay on income above this amount. The threshold has been frozen at this level indefinitely and will not increase with inflation.

When do repayments start?

Repayments begin once your annual income goes above $24,128. For employees this happens automatically through PAYE using the SL tax code. For self-employed people it is calculated at year end when you file your IR3.

How much do I repay?

12 cents for every dollar earned above $24,128 per year. For example if you earn $40,000 a year, your repayments are ($40,000 minus $24,128) x 12% = $1,904.64 per year.

Does my student loan have interest?

No, not if you live in New Zealand. Student loans are interest-free for NZ-based borrowers. Interest applies if you move overseas.

What tax code do I use?

Use M SL for your main job. Use ME SL if you earn between $24,000 and $70,000 and qualify for the independent earner tax credit. Use S SL for a second job.

What about second jobs?

The repayment threshold does not apply to secondary jobs. Your employer will deduct 12% of every dollar you earn from a second job - no threshold applies. This is because the threshold has already been used for your main job.

Are there any fees on my student loan?

Yes. IRD charges a $40 annual administration fee on all student loans, in addition to repayments.