NZ Student Loan 12% Repayment Threshold Calculator 2027

Calculate NZ student loan repayment 2027 — 12% of income above $24,128 threshold. NZ residents only — overseas borrowers face different rules.

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NZ-Based Borrower Rules

12% of income above NZ$24,128 (FY2027). NO interest if you remain NZ-tax-resident. PAYE deduction from wages by employer (compulsory). Self-employed: voluntary or via IR3.

Overseas-Based Borrower Rules

Fixed annual amount based on loan balance ($500-5,000+). Interest 4% applied. Must update IRD every 6 months. Compulsory voluntary repayments.

Threshold Changes Annually

Threshold indexed to CPI annually. 2024: $22,828. 2025: $23,556. 2026: $24,128. Each rise = small reduction in deduction for sub-threshold earners.

Voluntary Extra Payments

No bonus payment incentive in NZ-based scheme. Just pay it down faster. NO tax deduction on payments. Pay extra if cash flow allows.

Source: ird.govt.nz/student-loans repayment rules. Last updated: May 2026.