NZ student loan repayments are a flat 12% of every dollar above the $24,128 annual threshold. No marginal bands, no cap — much simpler than Australia's HECS. This calculator shows your annual, fortnightly, and weekly compulsory repayment for FY 2025-26.
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FY 2025-26: flat 12% of every dollar above the $24,128 threshold ($464/week).
Compulsory repayment this year
$0
% of total income
0%
Weekly
$0
Fortnightly
$0
Calculation
Income$0
Less: threshold ($24,128)$0
× 12%$0
Repayment$0
How NZ student loan repayments work
If you have an NZ student loan and your income exceeds $24,128/year
(or $464/week), your employer must deduct 12% of every
dollar above that threshold via PAYE. The deductions go
directly to IRD and reduce your loan balance.
The system is deliberately simple — flat rate, single threshold,
no marginal bands. Compare to Australia's HECS-HELP which uses a
cascading marginal system (15% / 17% / 10%) introduced in FY 2025-26.
NZ achieves similar policy goals with much less complexity.
Interest-free for NZ residents
One of the most distinctive features: NZ student loans are
interest-free while you live in NZ. This means
there\'s no financial cost to delaying repayment beyond the
compulsory amounts — your loan balance doesn\'t grow.
Overseas-based borrowers are different — interest accrues at a
market-linked rate. If you\'re planning to move overseas, IRD will
switch your status and your obligations change significantly.
A flat 12% of every dollar above $24,128/year (or $464/week). No marginal bands, no cap. Income below $24,128 generates no compulsory repayment.
How is this different from Australia's HECS-HELP?
Much simpler. Australia uses a marginal cascading system (15% / 17% / 10% bands), introduced FY 2025-26. NZ has always used a flat-rate-above-threshold system. The trade-off: NZ's system is more predictable but doesn't taper relief for borrowers right at the threshold like AU's does.
What is the SL tax code?
"SL" appears in tax codes (M SL, ME SL, S SL, etc.) to tell your employer to deduct the 12% student loan repayment via PAYE. If your employer doesn't use SL, you may end up with a balance owing at year-end. Always notify your employer if you have a student loan.
Are voluntary repayments worthwhile?
NZ student loans are interest-free for residents — so there's no interest cost to delay repayment. Voluntary repayments simply pay off the principal faster, freeing up future cashflow. Compare to investing instead: a 5%+ expected investment return generally beats accelerating an interest-free loan.
What if I move overseas?
You become an "overseas-based borrower" with different (and higher) obligations: interest may accrue, repayment thresholds change, and the IRD can enforce collection through reciprocal agreements with Australia. This calculator covers only the NZ-resident PAYE case.
What income counts toward the threshold?
Salary, wages, self-employment income, schedular payments, and most taxable income. Some items are excluded (e.g., NZ Super, certain ACC payments). For PAYE earners with one employer, gross salary is the relevant figure.