NZ Student Loan Repayment Threshold 2027 Calculator

New Zealand student loans use a tiered repayment system: NZ-based borrowers pay 12% of income above NZD 24,128/year (2027 threshold) and the loan is interest-free. Overseas-based borrowers (residing abroad for 184+ days in a year) face fixed annual repayments by loan-balance band (NZD 500-5,000) plus 4% interest. SLCIR and SLBOR tax codes let you manage repayments across multiple jobs.

NZ-Based vs Overseas-Based Rules

NZ-based (183+ days/year in NZ): 12% of income above NZD 24,128 (estimated 2027 threshold; IRD adjusts annually). Loan is interest-free. Employers deduct repayments via PAYE using SL tax codes (M SL, S SL, ME SL, SH SL). Self-employed pay via provisional tax. Overseas-based (184+ days outside NZ): fixed annual amount by loan balance: NZD 500 (under NZD 1k), NZD 1,000 (under NZD 15k), NZD 2,000 (under NZD 30k), NZD 3,000 (under NZD 45k), NZD 4,000 (under NZD 60k), NZD 5,000 (NZD 60k+). 4.0% annual interest applies. Plus optional voluntary payments to clear faster.

SLCIR / SLBOR for Multiple Jobs

If you have a second job or your primary job underpays repayments, you may have a square-up bill in your annual tax return. To avoid this: SLCIR (Customer Initiated Rate) lets you choose a higher repayment rate at your secondary job. SLBOR (Bond Repayment) is for bonded employees with student loan deductions from specific bonded scheme employers. Most secondary-job earners with SL should apply the 'SH SL' tax code (which deducts 12% on every dollar — no threshold applied at the secondary job since the threshold is consumed at the primary job). For voluntary extra payments, use IRD's Bonus Bonds-style direct credit to pay down faster — strongly recommended for overseas borrowers facing interest.

Last updated May 2026. Sources: Inland Revenue NZ, MSD.