Understanding Your PIR Calculator NZ

This calculator finds your correct prescribed investor rate, or PIR, from your income and explains why getting it right matters so much for your KiwiSaver and managed fund tax in New Zealand. A PIR is the tax rate applied to income from a Portfolio Investment Entity, the structure behind almost all KiwiSaver and managed funds, and there are just three rates to choose from: 10.5, 17.5 and 28 percent. The catch that costs so many New Zealanders money is that fund providers default anyone who does not supply a PIR to the top 28 percent rate, so plenty of lower earners quietly overpay tax on their investments for years without realising. Your PIR is set by the lower of your last two years' taxable income, combined with your PIE income, against fixed thresholds. You enter the lower of your last two years' taxable income and your PIE income for the year, and the calculator applies the official test and tells you your correct PIR and which threshold you fall into. If it comes out below 28 percent, that is a strong sign you should check the rate your provider holds and update it. This is one of the easiest tax wins available, so it is worth two minutes. General information, not tax advice.

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17.5%
your correct PIR, because income is 53,500 or less and the combined total is 78,100 or less

Uses the official PIR test on the lower of your last two years' income. If this is below 28%, check the rate your KiwiSaver or fund provider holds. General information, not tax advice.

How it works

The calculator applies the official PIR test. If your taxable income is 15,600 dollars or less and your income plus PIE income is 53,500 or less, your PIR is 10.5 percent. If your 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.

Worked example

On 40,000 dollars of income with 3,000 dollars of PIE income, the combined 43,000 is under 78,100 and income is under 53,500, so the PIR is 17.5 percent, not the 28 percent a provider would apply by default.

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. There are three rates: 10.5, 17.5 and 28 percent, set by your income over the last two years.

How do I find my PIR?

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

Why does it matter?

Providers default investors who do not supply a PIR to 28 percent, so a lower earner can overpay tax for years. Giving your provider the correct PIR is one of the simplest ways to stop paying too much tax on your investments.