PIR / PIE Tax Rate Optimiser

This calculator compares the after-tax return of a PIE fund taxed at your prescribed investor rate against the same income earned in a non-PIE investment taxed at your full marginal rate, so you can see exactly how much tax a PIE structure saves you in New Zealand. The key fact is that income inside a Portfolio Investment Entity is taxed at your PIR, which is capped at twenty-eight percent, while income earned directly, such as interest from an ordinary term deposit or dividends from shares held in your own name, is taxed at your marginal rate, which can be thirty, thirty-three or thirty-nine percent. For higher earners that gap is real money kept rather than paid in tax, which is why so much KiwiSaver and managed fund investing is done through PIEs. You enter the investment income, your PIR, and your marginal tax rate, and the calculator shows the after-tax income inside a PIE, the after-tax income in a non-PIE investment, and the tax the PIE saves you. Use it to decide whether to favour PIE funds and PIE term deposits over their ordinary equivalents. The benefit is largest for those on 33 or 39 percent and minimal for lower earners. This is general information, not tax advice; confirm your PIR is correct first.

PIE income is taxed at your PIR, capped at 28%; non-PIE income is taxed at your marginal rate. The benefit is largest for those on 33% or 39%. General information only.