NZ Student Loan 12% Repayment Calculator 2026
New Zealand student loan repayment is 12% of every dollar earned above the $24,128 repayment threshold (2026 rate per IRD). Calculate your annual repayment, monthly deduction, and time to pay off your loan.
| Annual Income | — |
| Repayment Threshold (2026) | — |
| Income Above Threshold | — |
| Repayment Rate | — |
| Annual Repayment | — |
| Monthly Repayment | — |
| Loan Balance | — |
| Interest Rate | — |
| Years to Pay Off | — |
How NZ Student Loan Repayment Works
New Zealand student loan repayment is administered by Inland Revenue (IRD) via PAYE deductions. You pay 12% of every dollar earned above the repayment threshold (NZ$24,128 for the 2026 tax year), automatically deducted from your wages.
Source: ird.govt.nz student loans. Self-employed pay based on Provisional Tax with End-of-Year reconciliation.
NZ-Based vs Overseas Borrowers
NZ-based borrowers (resident for tax purposes): 0% interest, repayment via PAYE only. No fixed minimum — repayment is purely 12% of income above the threshold.
Overseas-based borrowers (away 184+ days): 5.7% interest from year 2 onward (year 1 grace), plus minimum annual repayment obligations based on loan balance (NZ$1,000-$3,000+). IRD updates the overseas rate annually.
Voluntary Repayments and Bonus
Beyond compulsory PAYE, you can make voluntary lump sum repayments. No bonus or discount for voluntary repayments under current rules (the 10% voluntary bonus was abolished in 2018).
If you've overpaid (PAYE pulled more than your annual liability), IRD refunds at year-end. If underpaid, you owe at year-end. Stay informed via your IRD account.
Source: ird.govt.nz
Going Overseas — The Trap
Many Kiwis move overseas without realizing the interest impact. Once classified overseas-based, your loan accumulates 5.7% interest annually. A NZ$30,000 balance becomes NZ$50,000+ over 10 years if you don't repay.
Maintain NZ tax residency or repay aggressively before leaving. If you've been overseas, you can apply for a temporary repayment exemption based on hardship — IRD reviews case-by-case.