New Zealand Secondary Income & Side Hustle Tax Guide: Uber, Freelancing, Tax Codes & Rates
Earning a secondary income in NZ through a second job, freelancing, or gig economy platforms like Uber and Uber Eats is an increasingly popular way to boost earnings. However, many workers are confused by secondary income tax rates in NZ, tax code declarations on Form IR330, and how self-employed side hustle income is assessed by the Inland Revenue Department (IRD).
1. How Secondary Income Tax NZ Works
In New Zealand, every taxpayer has a single progressive scale of income tax rates. When you work two PAYE jobs, your main job uses your primary tax code (usually M or M ME), which applies lower tax brackets (10.5% and 17.5%) starting from $0.
If your second employer also used code M, both employers would assume you earn $0–$14,000 at 10.5%, resulting in significant underpayment of PAYE tax. To prevent this, IRD requires you to select a secondary tax code for your secondary job, instructing your second employer to deduct tax at your top expected marginal rate.
2. IR330 Tax Codes Breakdown (M vs S, SH, ST, SA)
When starting a secondary job, you complete IRD Form IR330 (Tax Code Declaration). The table below outlines which secondary tax code to select based on your total annual income from all sources:
| Tax Code | Total Estimated Income Range (All Jobs) | PAYE Withholding Rate |
|---|---|---|
| SB | $0 – $14,000 | 10.5% |
| S | $14,001 – $48,000 | 17.5% |
| SH | $48,001 – $70,000 | 30.0% |
| ST | $70,001 – $180,000 | 33.0% |
| SA | Above $180,000 | 39.0% |
Calculate your overall tax liability across combined jobs with our New Zealand Income Tax Calculator.
3. Paying Tax on Uber & Uber Eats Income NZ
If you operate as a driver or delivery partner for Uber or Uber Eats in NZ, your tax status is fundamentally different from a secondary PAYE job.
4. Self-Employed Side Hustles & Freelance Tax
For freelancers, graphic designers, tutors, tradespeople, or e-commerce sellers, self-employed income is declared alongside your primary salary.
- Provisional Tax Threshold: If your total tax liability on untaxed income (Residual Income Tax) exceeds $5,000, you will enter the IRD provisional tax regime, requiring advance tax payments in three annual installments.
- ACC Earner & Work Levies: ACC invoices self-employed individuals separately for earners' levy and work safety cover based on your declared self-employed earnings.
5. Vehicle & Expense Deductions for Ride-Share Drivers
Self-employed drivers and side-hustlers can claim legitimate business expenses to lower their net taxable income:
| Deduction Method | How It Works | Required Record Keeping |
|---|---|---|
| Kilometer Rate Method | Claim IRD approved per-km rate (Tier 1 for first 14,000 km, Tier 2 thereafter). | Logbook tracking business kilometers vs personal kilometers. |
| Actual Cost Method | Deduct exact percentage of fuel, repairs, maintenance, insurance, and vehicle depreciation. | Full receipts for all vehicle costs + 90-day logbook ratio. |
6. End-of-Year Tax Assessments & Refunds
At the end of the tax year (March 31), IRD performs an automatic end-of-year wash-up between May and June. If you used a secondary tax code that was slightly too high, IRD calculates your exact tax liability based on total annual earnings and automatically refunds any excess tax paid directly into your bank account.