Student loan deductions, explained
The threshold, repayment rate and why a second job is different.
For a main job, student loan deductions normally apply to earnings above the repayment threshold for each pay period. The annual threshold used for the 2026/27 year is $24,128, and the repayment rate is 12% above that threshold.
A simple annual example
For steady annual earnings of $60,000, the annualised estimate is ($60,000 − $24,128) × 12% = $4,304.64. This is a planning estimate; payroll operates on the relevant pay-period threshold.
Secondary jobs have different treatment
A secondary job generally has student loan deductions on all its earnings rather than a second main-job threshold. This tool assumes one main job. Do not enter your second-job salary alone and treat the result as an exact payroll calculation.
Other circumstances
Repayment exemptions, special deduction rates, changes in earnings and overseas-based obligations are outside this calculation. It does not predict a repayment date because your balance, residency and future income also matter.
Use the salary calculator to view student loan repayments alongside income tax, ACC and KiwiSaver. Check your tax-code declaration and the Inland Revenue guidance when your work situation changes.
Compare three steady-income scenarios
| Annual main-job earnings | Annualised repayment | Average per month |
|---|---|---|
| $30,000.00 | $704.64 | $58.72 |
| $45,000.00 | $2,504.64 | $208.72 |
| $60,000.00 | $4,304.64 | $358.72 |
The income figure is not your outstanding loan balance. A lower remaining balance does not change this calculator’s annual result because it does not connect to your loan account. If the loan is close to being repaid, check the actual account and payroll process instead of assuming the full modelled deduction will continue.
Why variable pay needs care
A year with a few high-earning weeks and several unpaid weeks is not identical to a year with steady pay in every period. The annual calculation smooths the earnings. A payslip applies rules for that pay period, so the timing of pay can matter even when the annual total looks similar.
Prepare the facts before asking about a difference
Record the pay period, gross amount, tax code and whether the job is your main or secondary employment. Note any special rate or exemption that applies. Compare those details with the assumptions shown under the calculator. A screenshot of the annual result alone does not establish that a particular payroll deduction is wrong.
For a budget, keep the loan line separate from KiwiSaver and income tax. This makes it easier to see which amount may change after a loan is fully repaid. Do not assume every other deduction disappears with it.
Questions or corrections?
Send the relevant page and a non-sensitive example through our contact form. Read our calculation methodology to see the scope of the model.