NZ RWT and PIR Rates 2026/27

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 rate	When 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)

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

PIR	Who it applies to (individuals)
10.5%	Income in both of the last 2 years was $15,600 or less, and total income $48,000 or less
17.5%	Total income (income plus PIE income) up to $53,500 in either of the last 2 years
28%	Everyone else; the maximum PIR

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.