Choose the right tax code for your NZ Superannuation
When you start getting NZ Super you might still have other sources of income. You need to make sure you're using the correct tax code.
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You have to choose a tax code when you complete your application for NZ Super. The tax code you use depends on whether you have any other income and if you do, where it comes from.
If NZ Super is your only income
Your tax code is M unless you have a student loan. If you have a student loan your tax code is M SL.
If you’re still working
You can keep working after you start receiving NZ Super. If you do and are still getting wages or a salary, you need to decide if your NZ Super is your primary or secondary source of income.
Your NZ Super is your primary source of income
If the amount you receive from NZ Super is more than you earn from your wages or salary, then it is your primary source of income. Your tax code for NZ Super is M unless you have a student loan. If you have a student loan your tax code is M SL.
Your NZ Super is your secondary source of income
If the amount you receive from NZ Super is less than you get from your wages or salary, then it is a secondary source of income and you need to use one of the following tax codes.
If the total amount you’ll earn in a year, including your NZ Super, is:
- less or equal to $48,000 your secondary tax code is S and your NZ Super will be taxed at 17.5%
- between $48,001 and $70,000 your secondary tax code is SH and your NZ Super will be taxed at 30%
- more than $70,000 your secondary tax code is ST and your NZ Super will be taxed at 33%.
Special tax code
If you feel you’re paying too much or not enough tax you can apply for a special tax code — for example, if you get NZ Super and other income or if you’re receiving an overseas pension that is taxable in NZ.
You can apply for a special tax code by
- downloading a special tax code application form, or
- calling Inland Revenue and asking them to send you the form.
Freephone: 0800 257 773 from a New Zealand landline only
Phone: +64 4 978 0767 from a cellphone
IR work out the right amount of tax for you and provide you with a special tax code certificate. You need to give this to your employer or pension provider.
A special tax code only lasts for 1 tax year (1 April to 31 March). If you apply part-way through the year, it applies from the date that IR approves it to the end of that tax year. You’ll only know the exact amount of tax you need to pay or that will be refunded to you after you receive your personal tax summary or complete an individual tax return IR3.
Tax on investments or savings
You also need to make sure that any money you get from investments or interest is taxed at the correct rate.