NZ tax and money glossary
This NZ tax and money glossary explains the 15 terms that turn up on payslips, KiwiSaver statements and home loan offers, with figures for the 2026/27 tax year and a worked example for each.
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Pay, PAYE and student loans(4)
PAYE (Pay As You Earn)
PAYE is the income tax and ACC earners' levy your employer takes out of each pay and sends to Inland Revenue, based on the tax code you give them.
PAYE calculator →Tax code M
Tax code M is the main tax code for your only or highest-paying job. ME adds the independent earner tax credit, and SL adds student loan deductions.
PAYE calculator →Secondary tax
Secondary tax is PAYE on a second job, taken at one flat rate from the first dollar. The code (SB, S, SH, ST or SA) depends on your total income.
Income tax calculator →Student loan repayment threshold
The student loan repayment threshold is $24,128 a year. Above it, 12 cents of every dollar of salary or wages goes to your loan.
Student loan repayment calculator →Tax, ACC and GST(4)
ACC earners' levy
The ACC earners' levy funds cover for injuries outside work. For 2026/27 it is $1.75 per $100 of earnings, up to $156,641.
PAYE calculator →Independent earner tax credit (IETC)
The independent earner tax credit is worth up to $520 a year for people earning $24,000 to $70,000 who get no Working for Families or NZ Super.
Income tax calculator →GST (Goods and Services Tax)
GST is a 15% tax on most goods and services sold in New Zealand. To find the GST inside a GST-inclusive price, multiply by 3 and divide by 23.
GST calculator →IRD number
Your IRD number is the eight or nine digit number Inland Revenue uses to identify you for tax, KiwiSaver, student loans and Working for Families.
PAYE calculator →KiwiSaver(3)
KiwiSaver
KiwiSaver is New Zealand's voluntary work-based retirement savings scheme. From 1 April 2026 the default employee and employer rates are 3.5% each.
KiwiSaver calculator →ESCT (employer superannuation contribution tax)
ESCT is the tax taken off your employer's KiwiSaver contributions before they reach your account. The rate depends on your pay plus those contributions.
KiwiSaver calculator →KiwiSaver government contribution
The KiwiSaver government contribution pays 25 cents per dollar you contribute each July to June year, up to $260.72.
KiwiSaver calculator →Home loans(4)
LVR (loan-to-value ratio)
LVR is the size of your home loan as a share of the property's value. Banks limit owner-occupier lending above 80% LVR, so most need a 20% deposit.
Mortgage calculator →Low-equity margin
A low-equity margin is extra interest, or a one-off fee, that a bank charges when your deposit is under 20% and the loan is above 80% LVR.
Mortgage calculator →Fixed-rate home loan
A fixed-rate home loan locks the interest rate for a set term, usually 6 months to 5 years. When it ends you refix or roll to the floating rate.
Mortgage calculator →Break fee
A break fee is what a bank charges if you repay or change a fixed-rate home loan before the term ends and wholesale rates have fallen since you fixed.
Mortgage calculator →PAYE is the income tax and ACC earners' levy your employer takes out of each pay and sends to Inland Revenue, based on the tax code you give them.
ESCT is the tax taken off your employer's KiwiSaver contributions before they reach your account. The rate depends on your pay plus those contributions.
LVR is the size of your home loan as a share of the property's value. Banks limit owner-occupier lending above 80% LVR, so most need a 20% deposit.
Want to run the numbers? Go to the New Zealand calculators.