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What's my PIR?
Find the prescribed investor rate (PIR) your KiwiSaver and managed funds should be taxing you at: 10.5%, 17.5% or 28%. Get it wrong and you quietly overpay, or land a tax bill.
Your PIR looks at your last two tax years and uses the lower one, so if one year was quieter, add it to get the rate you're entitled to. "PIE income" is what your KiwiSaver or managed funds attribute to you (your provider can tell you the figure).
Enter your taxable income to find the prescribed investor rate (PIR) your KiwiSaver and managed funds should be using.
How your PIR is worked out
A PIR is the rate a portfolio investment entity (PIE), like your KiwiSaver fund or a managed fund, uses to tax the income it earns on your behalf. For New Zealand tax residents there are three rates: 10.5%, 17.5% and 28%.
The rate is based on your last two income years (each ending 31 March), and you get the lowest rate that either year qualifies for:
- 10.5% if, in either year, your taxable income was $15,600 or less and your total income (including PIE income) was $53,500 or less.
- 17.5% if, in either year, your taxable income was $53,500 or less and your total income (including PIE income) was $78,100 or less.
- 28% in all other cases.
Because it uses the lower of the two years, a year on reduced income (study, parental leave, a gap between jobs) can bring your rate down. It's worth reviewing your PIR each year: if you give none, your PIE defaults to 28%, and if you use one that's too low, IRD squares it up and you may owe tax.
PIR questions, answered
- What is a prescribed investor rate (PIR)?
- Your PIR is the tax rate a portfolio investment entity (PIE), such as your KiwiSaver fund or a managed fund, uses to tax the income it earns for you. For New Zealand tax-resident individuals it's 10.5%, 17.5% or 28%, based on your income over the last two tax years.
- How is my PIR worked out?
- Look at each of your last two income years (each ending 31 March). You get 10.5% if in either year your taxable income was $15,600 or less and your total income including PIE income was $53,500 or less. You get 17.5% if in either year your taxable income was $53,500 or less and your total income including PIE income was $78,100 or less. Otherwise it's 28%. Because it uses the lower year, a quieter year can pull your rate down.
- What counts as 'PIE income'?
- It's the income your PIEs (KiwiSaver and managed funds) attribute to you for the year, on top of your salary or wages. Your provider reports this figure to you and to IRD each year, so you can use last year's as a guide.
- What happens if I don't give my PIR?
- If you don't tell your PIE your PIR, it defaults to 28%, the top rate. If your correct rate is lower, you'll have overpaid tax on your investment income. Giving the right PIR (and your IRD number) means you're taxed at the correct rate from the start.
- What if my PIR is too low?
- If you use a PIR that's lower than your correct rate, IRD will square it up at the end of the year and you may have tax to pay. It's worth checking your PIR each year, especially if your income has changed, so you neither overpay nor get a bill.
- Is my KiwiSaver a PIE?
- Almost all KiwiSaver schemes are multi-rate PIEs, so your PIR applies to the tax on your KiwiSaver returns. Using the wrong PIR is one of the most common reasons Kiwis quietly overpay tax on their KiwiSaver.
- Does this calculator cover trusts, companies or non-residents?
- No. This tool is for New Zealand tax-resident individuals, which covers most people with KiwiSaver or a managed fund. Trusts, companies, non-residents and zero-rate or transitional-resident cases follow different rules: check ird.govt.nz/pir or talk to your provider.
Know your rate, then watch your money.
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KiwiSaver Max-Out Calculator →NZ Take-home Pay Calculator →Related reading: What is my PIR? Picking the right prescribed investor rate. Or see all our free NZ money calculators.