NZ Student Loan Repayment Calculator 2026 — 12% Over $24,128

Calculate your New Zealand student loan repayment for 2026 — 12% of income over the IRD threshold of NZ$24,128 — plus overseas-based interest and accelerated payoff scenarios.

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The 12% Over $24,128 Rule

NZ-based borrowers pay 12% of every dollar earned ABOVE the annual threshold of NZ$24,128 (2026). For someone earning NZ$60,000, repayment = (60,000 − 24,128) × 12% = NZ$4,304/year ≈ NZ$83/week. Deducted via PAYE if you ticked the M SL tax code.

Interest-Free While in NZ

Loans are 0% interest while you live in NZ for at least 183 days/year. The principal balance doesn't grow. This is uniquely generous — most countries charge 4–7% even for residents.

Overseas-Based Charges 4%

If overseas 184+ days, IRD adds 4% annual interest (compounding monthly). A NZ$30,000 balance grows ~$1,200/year passively. Mandatory minimum repayments scale to balance: under $45k = $1,000/year; $45k-60k = $2,000; etc. — paid in two installments (Sept 30, March 31).

Voluntary Repayment Bonus Gone

The 10% bonus for voluntary repayment of $500+ ended in 2014. Today extra payments simply reduce principal — no special bonus. Strategy: extra repayments make sense if overseas (avoids 4% interest) or if you have other higher-priority savings goals.

Source: ird.govt.nz student loan repayment scheme 2026. Last updated: May 2026.