Reference
Last updated: April 2026
New Zealand student loans are interest-free for NZ-based borrowers. Repayments are deducted automatically from salary and wages at 12% of income above the repayment threshold. This page covers current rates, thresholds, overseas borrower obligations, and historical data.
Student Loan Calculator PAYE Calculator| Item | Rate / Amount | Notes |
|---|---|---|
| Repayment rate | 12% | Of every dollar earned over the threshold (salary/wages) |
| Annual repayment threshold | $24,128 | No repayments on income below this amount |
| Interest rate (NZ-based) | 0% | Interest-free while ordinarily living in NZ |
| Interest rate (overseas-based) | 5.6% | From 1 April 2026. Applies when overseas-based (32-day rule: in NZ fewer than 32 days in a 184-day period) |
| Late payment interest (overseas) | 9.6% per annum | From 1 April 2026. Charged on overdue compulsory repayment amounts of $334 or more |
| Tax code suffix | SL | Added to your primary tax code (e.g. M SL, ME SL) |
| Annual Salary | Income Over Threshold | Annual Repayment (12%) | Per Fortnight |
|---|---|---|---|
| $40,000 | $15,872 | $1,904.64 | $73.25 |
| $50,000 | $25,872 | $3,104.64 | $119.41 |
| $60,000 | $35,872 | $4,304.64 | $165.56 |
| $75,000 | $50,872 | $6,104.64 | $234.79 |
| $100,000 | $75,872 | $9,104.64 | $350.18 |
If you live overseas for more than 184 consecutive days, interest begins accruing and compulsory repayments are based on your loan balance (not income):
| Loan Balance | Annual Compulsory Repayment |
|---|---|
| Under $1,000 | Full balance |
| $1,000 to $15,000 | $1,000 |
| $15,001 to $30,000 | $2,000 |
| $30,001 to $45,000 | $3,000 |
| $45,001 to $60,000 | $4,000 |
| Over $60,000 | $5,000 |
| Tax Year | Repayment Rate | Annual Threshold |
|---|---|---|
| 2026/27 | 12% | $24,128 |
| 2025/26 | 12% | $24,128 |
| 2024/25 | 12% | $22,828 |
| 2023/24 | 12% | $22,828 |
| 2022/23 | 12% | $21,268 |
| 2021/22 | 12% | $20,280 |
| 2020/21 | 12% | $20,020 |
| 2019/20 | 12% | $19,760 |
Fees Free changed from a first-year to a final-year model from 1 January 2025. The former first-year Fees Free scheme has ended (with transitional rules for 2024 learners).
| Item | Detail |
|---|---|
| Coverage | Final year of tertiary study (up to 1 EFTS, around $12,000 incl. GST), or final 2 years of work-based learning (up to 24 months) |
| When it applies | Final year must start on or after 1 January 2025 |
| Eligibility | NZ citizens or permanent residents who have not previously used first-year Fees Free, meet residency rules, and complete an eligible qualification or programme |
| How to claim | Through myIR after completing the first eligible qualification or programme (claims open from 2026 for 2025 completions) |
| Administered by | Inland Revenue (previously the Tertiary Education Commission) |
| Repayable? | No, it is a grant (not a loan). If you have a student loan, the entitlement is paid to your loan balance; otherwise it goes to your nominated bank account |
| What it covers | Tuition fees only (not living costs) |
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