NZ student loan repayment calculator
Work out how much you'll repay on your NZ student loan in the 2026 income year — 12% on every dollar above the $24,128 threshold.
Rates verified 2026-06-06. Source: IRD — student loans.
Your income
Repayment threshold: $24,128 (FY 2026)
Repayment rate: 12% on every dollar above the threshold
Your repayment
How NZ student loan repayments work
New Zealand student loans are interest-free for NZ-resident borrowers (Student Loan Scheme Amendment Act). Repayments are compulsory once your annual assessable income crosses the repayment threshold — $24,128 for the 2026 income year. Above that, IRD collects 12c in every dollar through your PAYE, secondary tax code, or directly from your IR3 if you're self-employed.
Voluntary repayments above the compulsory rate accelerate clearing the loan and historically have attracted a 10% bonus on lump sums of $500 or more. Check the IRD page for current incentive rules.
FAQ
When do student loan repayments start?
Compulsory repayments start the moment your annual income crosses $24,128 (2026 income year). For NZ-based borrowers earning salary or wages, IRD collects 12c in every dollar above the threshold automatically via your tax code (M SL, ME SL, S SL).
What if I have two jobs?
Student loan repayments are calculated on your total assessable income, not per-job. If your second job uses an "S SL" code, the 12% will be deducted on the secondary income from dollar one (since the threshold is treated as already covered by your primary). At year-end IRD reconciles the total.
Do voluntary repayments help?
Yes — they reduce the loan balance and the interest accrual (interest applies for overseas-based borrowers and on certain loan types). IRD has periodically offered a 10% bonus on lump-sum voluntary repayments of $500 or more; check the IRD page for the current rule.
What if I move overseas?
Overseas-based borrowers have a fixed annual repayment obligation based on the loan balance, not a percentage of income. Failing to make scheduled payments accrues interest and can result in a NZ Customs alert at the border. See IRD for the current overseas borrower schedule.
Related
- NZ PAYE calculator — per-payday take-home including the SL deduction.
- NZ income tax calculator — annual breakdown.
- NZ tax deadlines 2026.
Overseas-based borrower or self-employed?
Overseas-based and self-employed borrowers have different repayment rules that this calculator does not handle. We refer every quote request to Lynch & Associates, our Auckland partner firm, who will reply within one business day.
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