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M vs ME tax code

For a main or highest PAYE income, M is the default path. You only move to ME if every extra IR330 condition is met. Add SL if student loan deductions also apply.

Applies to main or highest PAYE income Based on IR330 October 2025 Reviewed 9 April 2026

Quick answer

When to use M, M SL, ME, or ME SL

  • Use M for a main or highest PAYE income if any ME condition fails.
  • Use ME only if you meet every extra IR330 condition on residency, annual net income, and exclusions.
  • Add SL when the same path also needs New Zealand student loan deductions.
  • If the income is a Work and Income main benefit itself, use M. Any other salary or wages then move to a secondary tax code instead.

Use M

Stay on M or M SL if any ME condition fails

  • This is your main or highest PAYE income, but you are not a New Zealand tax resident.
  • Your annual net income is below NZ$24,000 or above NZ$70,000.
  • You or your partner receive Working for Families or an overseas equivalent.
  • You receive NZ Super, Veteran’s Pension, a main benefit, or an overseas equivalent.

Use ME

Move to ME or ME SL only if all conditions are true

  • This is your main or highest source of salary or wages.
  • You are a New Zealand tax resident.
  • Your annual net income is between NZ$24,000 and NZ$70,000.
  • No exclusion in IR330 note 5 applies to you or your partner.

Decision table

Main-income outcomes

Situation Likely code
Main or highest PAYE income, no student loan, not eligible for ME M
Main or highest PAYE income, student loan applies, not eligible for ME M SL
Main or highest PAYE income, every ME condition is met, no student loan ME
Main or highest PAYE income, every ME condition is met, student loan applies ME SL

Edge cases

Important exceptions

If you receive a main benefit from Work and Income, the benefit itself uses M. Any other salary or wages must use the secondary-income path.

If your circumstances change during the year, Inland Revenue says you may need to change your code. Common examples include starting or stopping student loan deductions, becoming eligible for ME, or taking on another job.

Secondary tax codes

See the SB, S, SH, ST, and SA bands for a second job or lower PAYE income.

IR330 vs IR330C

Check which form to use if your income is employee pay or contractor withholding.

IR330 form guide

See what the IR330 tax code declaration form is for and when IR330C is the better fit.