PIR Optimisation Calculator NZ

This calculator finds your correct Prescribed Investor Rate, or PIR, for a PIE managed fund or KiwiSaver in New Zealand, and shows how much tax you save by using the right rate rather than the default 28 percent. A PIE, or Portfolio Investment Entity, is the structure behind most KiwiSaver and managed funds, and its income is taxed at your PIR, which is one of just three rates: 10.5, 17.5 or 28 percent. The catch is that providers default new investors who do not supply a PIR to the top 28 percent rate, so a great many lower-income earners quietly overpay tax on their investments for years without realising. Your PIR is set by the lower of your last two years' total income, with thresholds that combine your taxable income and your PIE income, and the calculator applies the official test for you: you enter the lower of your last two years' taxable income and your PIE income, and it returns the correct PIR, the tax on your PIE income at that rate, and the tax you would save compared with paying 28 percent. Getting this right is one of the simplest tax wins available, so if the result is below 28 percent, tell your provider your correct PIR. This is general information, not tax advice.

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$
$
17.5%
your correct PIR
Tax at your PIR$525
Tax at 28%$840
Tax saved$315

Uses the official PIR thresholds on the lower of your last two years' income. Tell your provider your correct PIR. General information, not tax advice.

How it works

The calculator applies the PIR test: if your taxable income is 15,600 or less and your income plus PIE income is 53,500 or less, the PIR is 10.5 percent; if income is 53,500 or less and the combined total is 78,100 or less, it is 17.5 percent; otherwise it is 28 percent. It then taxes your PIE income at that rate and at 28 percent to show the saving.

Worked example

On 40,000 dollars of income with 3,000 dollars of PIE income, the combined 43,000 is under 78,100, so the PIR is 17.5 percent. That is 525 dollars of tax versus 840 dollars at 28 percent, a saving of 315 dollars.

Related calculators

Data sources: the rates and thresholds on this page are maintained against Inland Revenue. Figures are checked twice monthly.

Frequently asked questions

What is a PIR?

The Prescribed Investor Rate is the tax rate applied to income from a Portfolio Investment Entity, which includes most KiwiSaver and managed funds. The rates are 10.5, 17.5 and 28 percent, set by your income.

How is my PIR worked out?

It uses the lower of your last two years' income. If that income is 15,600 dollars or less and combined with PIE income is 53,500 or less, your PIR is 10.5 percent. Up to 53,500 income and 78,100 combined gives 17.5 percent. Above that it is 28 percent.

What if my PIR is wrong?

Too high and you have overpaid tax, which since 2020 Inland Revenue may refund at year end. Too low and you will owe tax. Giving your provider the correct PIR avoids both, and is one of the easiest tax wins available.