PIR Tax Calculator 2025/26
Find your Prescribed Investor Rate (PIR), calculate KiwiSaver tax savings, and see how much less tax you pay inside a PIE fund vs your marginal rate.
Combined ≤$48K
Combined ≤$70K
(max rate)
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How to Use This Calculator
Tab "Find My PIR"
Enter your taxable income and PIE income for each of the last two completed tax years (years ending 31 March). The calculator checks both years and returns the lower qualifying PIR — this is the rate you should give to your fund provider.
Tab "Tax Savings"
Enter your annual income, investment amount, and expected return to compare the tax you pay on investment returns inside a PIE fund (at your PIR) versus outside (at your marginal rate). The result shows your annual and projected tax saving from using the PIE structure.
Tab "KiwiSaver Impact"
Enter your KiwiSaver balance, annual contributions, return rate, and years to retirement. The calculator projects your balance under two scenarios — taxed at PIR versus taxed at marginal rate — and shows the compound advantage of the PIE tax structure over time.
What Is a Prescribed Investor Rate?
A Prescribed Investor Rate (PIR) is the tax rate that applies to income you earn from a Portfolio Investment Entity (PIE) fund. PIE funds include KiwiSaver, most managed funds, and some bank cash PIE accounts. Instead of paying tax at your marginal income tax rate, PIE income is taxed at the PIR — which has a maximum of 28%.
New Zealand's top marginal income tax rate is 39% (on income above $180,000). For a high earner, the PIR cap of 28% represents an 11 percentage point tax saving on every dollar of PIE fund returns. Even for someone on the 30% or 33% bracket, the saving of 2–5 percentage points is meaningful over a long investment horizon.
PIE income is taxed at source by the fund — it is not included in your income tax return and is not subject to provisional tax. This makes PIE funds administratively simpler as well as tax-efficient.
The Three PIR Rates
| PIR | Taxable income | Taxable income + PIE income |
|---|---|---|
| 10.5% | $14,000 or less | $48,000 or less |
| 17.5% | $48,000 or less | $70,000 or less |
| 28% | Any amount | Any amount (default) |
Both conditions must be met for the lower rates. If your taxable income is $45,000 but your combined income (taxable + PIE) exceeds $70,000, your PIR is 28%, not 17.5%. You must check both years and use the lower qualifying PIR.
The PIR Formula
Step 1: Look up your taxable income (salary, wages, interest, dividends, rent — not PIE income)
Step 2: Add your PIE income from that year to get combined income
Step 3: Apply the threshold test above
Choosing your PIR:
Calculate the qualifying PIR for each of the last 2 tax years
Your effective PIR = lower of (Year 1 PIR, Year 2 PIR)
Tax paid on PIE income:
PIE tax = PIE income × PIR
(deducted at source — no further tax owed, no refund if correct)
Tax saving vs marginal rate:
Annual saving = PIE return × (marginal rate − PIR)
Example (income $100K, $50K in PIE fund, 7% return):
PIE return = $50,000 × 7% = $3,500
Tax at PIR 28% = $3,500 × 0.28 = $980
Tax at marginal 33% = $3,500 × 0.33 = $1,155
Annual saving = $1,155 − $980 = $175
All rates from Inland Revenue (IRD) for the 2025/26 tax year. PIR rules are set out in the Income Tax Act 2007.
Example: High Earner Saving
Software engineer earning $150,000 with $80,000 in KiwiSaver
Alex earns $150,000 a year and has $80,000 in KiwiSaver earning 7% annually.
As Alex's KiwiSaver balance grows to $300,000, the same 7% return of $21,000 would save $1,050 per year at the 5% rate differential. Over a 20-year investment horizon this compounds substantially.
KiwiSaver and PIR: The Key Connection
Every KiwiSaver fund is a PIE fund. This is not optional — it is built into how KiwiSaver is structured. All investment returns within your KiwiSaver account (interest, dividends, gains from portfolio activity) are taxed at your PIR before they are added to your balance.
This has two practical implications. First, if you are a high earner, KiwiSaver is one of the most tax-efficient ways to hold investments in New Zealand — your returns are never taxed at more than 28%, no matter how high your income. Second, you need to make sure your PIR is set correctly with your KiwiSaver provider. If it is too high you will get a refund (via your tax return), but if it is too low you must correct it.
For someone earning above $180,000 and paying the 39% marginal rate, every $10,000 of KiwiSaver returns saves $1,100 in tax compared to the same return earned outside a PIE structure. Over a 30-year working career, this difference compounds to a significant sum.
What Counts as Taxable Income for PIR Purposes?
Taxable income includes: salary, wages, self-employment income, rental income, interest from bank accounts, dividends from shares held directly, and most other income reported on your tax return.
Taxable income does not include: PIE income (already taxed at PIR, not included in your return), Working for Families credits, child support received, student loan repayments, or income of a minor that is excluded from PIE calculations.
PIE income is the amount attributed to you from any PIE fund during the tax year. Your fund provider will send you an annual investor statement showing your PIE income and the tax paid. Use this figure when working out your PIR for next year.
PIR vs Marginal Rate: Full Comparison
| Annual income | Marginal rate | PIR | Saving on PIE returns |
|---|---|---|---|
| Up to $14,000 | 10.5% | 10.5% | None |
| $14,001 – $48,000 | 17.5% | 17.5% | None |
| $48,001 – $70,000 | 30% | 28% | 2% |
| $70,001 – $180,000 | 33% | 28% | 5% |
| Over $180,000 | 39% | 28% | 11% |
Saving is per dollar of PIE fund return. A $100K investor earning 7% ($7,000) saves $770/year at 11%, or $350/year at 5%.