The amount of tax that is deducted from your income depends on your individual tax code.Your code primarily depends on how many jobs/sources of income you have, also whether or not you have a student loan, so listen up!
New Zealand’s tax rate is 33 per cent for an income over NZ$70,000. At the other end of the scale, the tax rate is 10.5 per cent on income up to $14,000.
This means if you are being paid $14 an hour, effectively $1.40 is taken off as tax. However, each person would qualify for a different code, which may or may not vary the tax deducted from your pay.
If you have a student loan you’re required to use a main tax code that includes ‘SL’ unless you have a repayment deduction exemption.
You’ll need a separate code for any income you receive from a second job or another source.
Same again, if you hold a student loan, you are required to use a secondary tax code that includes ‘SL’.
You can ask your employer to make student loan deductions from your pay; this is something many people do to ease the stress of paying off a lump sum.