Wrong Tax Code Refund Calculator

Being on the wrong tax code is one of the most common reasons New Zealanders over-pay tax, and this calculator estimates how much you might get back. Your tax code tells your employer how to deduct PAYE. The right primary code, usually M, steps your income through the brackets so you are taxed at 10.5 percent on the first slice, then 17.5 percent, and so on. The problem appears when the wrong code is used, most often a secondary code such as S, SH or ST applied to your only or main job. Secondary codes tax every dollar at a single flat rate, on the assumption that this income sits on top of a higher primary income. If it does not, you are taxed far too heavily and build up a refund. The same thing happens if you were left on an emergency or no-notification code, or simply never updated your code after a job change. The fix is simple in concept: compare the tax that was actually deducted from your pay across the year with the tax you genuinely owe on your total income, and the difference is your refund. You enter your total income for the tax year and the total PAYE that was deducted, both of which appear on your payslips or in myIR, and the calculator works out the tax you should have paid, allowing for the Independent Earner Tax Credit, and the likely refund. It also lists the current codes and rates so you can check what you are on. To stop it happening again, give your employer an updated IR330 with the correct code. This is an estimate, not an official Inland Revenue assessment.

Compares tax deducted with tax owed on your total income. A negative result means too little was deducted. An estimate, not an IRD assessment.