Reference

NZ RWT and PIR Rates 2026/27

Quick answer Your RWT rate on interest should match your income tax rate: 10.5%, 17.5%, 30%, 33% or 39%. If your bank does not hold your IRD number the no-notification rate of 45% applies. For PIE funds the Prescribed Investor Rate is capped at 28%, which beats RWT for anyone on 33% or 39%.

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10.5-39%
RWT Rate Options
28%
Maximum PIR
45%
No IRD Number RWT

Resident Withholding Tax (RWT) is tax deducted at source from interest and dividends paid to New Zealand residents. The Prescribed Investor Rate (PIR) is the rate that applies to income in a Portfolio Investment Entity (PIE), such as most KiwiSaver funds and PIE term deposits. Choosing the right rate matters: too low and you face a tax bill, too high and you give the IRD an interest-free loan. This is general information, not tax advice.

Term Deposit Calculator PIE vs Non-PIE Income Tax Calculator

RWT Rates on Interest

You choose your RWT rate to match your income tax rate. If you do not give your bank your IRD number, the no-notification rate applies.

RWT rateWhen to use it
10.5%Total income up to $15,600
17.5%Total income $15,601 to $53,500
30%Total income $53,501 to $78,100
33%Total income $78,101 to $180,000
39%Total income over $180,000
45%No-notification rate (no IRD number supplied)
Source: IRD - Resident withholding tax (RWT). Pick the rate closest to your marginal income tax rate so the tax withheld roughly matches what you owe.

RWT on Dividends

Dividends from NZ companies usually carry imputation credits (for company tax already paid). RWT on dividends tops the total up to 33%, so a fully imputed dividend has 5% RWT deducted (28% company tax plus 5% equals 33%). You account for the rest through your tax return if your rate is higher.

Prescribed Investor Rate (PIR) for PIE Funds

PIRWho it applies to (individuals)
10.5%Taxable income $15,600 or less and taxable plus PIE income $53,500 or less
17.5%Taxable income $53,500 or less and taxable plus PIE income $78,100 or less
28%Everyone else, and the default if you give your PIE no rate. The maximum PIR

Both tests must be met, not either one. The rate is worked out for each of the last two income years and you use the lower of the two, so a single high year does not move you up a band. The PIR is capped at 28%, which is below the top income tax rates of 33% and 39%. For a higher earner, a PIE investment (such as a PIE term deposit or a managed fund) is taxed at most 28%, so it can give a better after-tax return than a standard investment taxed at 33% or 39% RWT. Getting your PIR wrong is squared up at the end of the year.

Source: IRD - Prescribed investor rates. Check the exact income tests, which use your income over the last two years. See also our NZ Tax Rates and Term Deposit Rates references.

Cite this page NZ RWT and PIR Rates 2026/27. Calculate.co.nz. https://www.calculate.co.nz/reference/nz-rwt-and-pir-rates.php (retrieved 31 August 2026). Figures are compiled from the official sources listed above and reviewed twice monthly.