PIR Calculator — Prescribed Investor Rate & PIE Tax
Enter taxable income and PIE income for an income year to see which PIR those figures support under IRD's rules — 10.5%, 17.5%, or 28% — the tax deducted from PIE income (including KiwiSaver scheme investment earnings) at that rate, and how it compares with personal marginal rates. A mis-set PIR changes the tax deducted during the year; IRD squares up the difference at year end.
Last updated: July 2026 · Illustrative only — not financial or tax advice. Deterministic IRD-rule math; thresholds in force from 1 April 2025.
| PIR | Tax deducted | vs the rate these figures support |
|---|---|---|
| 10.5% | $210 | $350 less deducted during the year (collected by IRD at year end) |
| 17.5% | $350 | $210 less deducted during the year (collected by IRD at year end) |
| 28% — rate these figures support | $560 | — |
Since 1 April 2020, IRD reconciles PIE tax at the end of every tax year: PIE tax overpaid on a PIR set too high is refunded or credited in the year-end income-tax assessment, and a shortfall from a PIR set too low is included in that assessment. Before that date, overpaid PIE tax was not refundable.
Show the working
- Taxable income (excl. PIE income)
- $60,000
- PIE income
- $2,000
- Combined (taxable + PIE income)
- $62,000
- PIR band test (IRD, from 1 April 2025)
- 10.5% PIR needs taxable ≤ $15,600 and combined ≤ $53,500; 17.5% PIR needs taxable ≤ $53,500 and combined ≤ $78,100; otherwise 28% PIR
- Tax at PIR
- $2,000 × 28% = $560
- Tax at marginal rates
- tax($62,000) − tax($60,000) = $600
Personal-rate comparison uses the income-tax brackets in force from 1 April 2025. IRD's PIR guidance and the PIE rules are the authoritative source — ird.govt.nz: using prescribed investor rates.
How the calculation works
The calculator does three things in sequence. First, it applies IRD's PIR band test to the figures you enter: the 10.5% PIR needs taxable income of $15,600 or less and taxable-plus-PIE income of $53,500 or less; the 17.5% PIR needs taxable income of $53,500 or less and a combined total of $78,100 or less; anything above those falls to the 28% PIR cap. Second, it multiplies your PIE income by that rate — the tax your PIE deducts on your behalf. Third, it computes the marginal-rate comparison: the extra personal income tax the same dollars would attract if they were stacked on top of your taxable income at the personal brackets, instead of being taxed inside the PIE.
IRD determines the PIR from each of the two previous income years — when the years support different rates, the lower rate applies. The widget computes one year at a time, so run it once for each of the two years and take the lower result. The 28% PIR is a cap: PIE income is never taxed above the 28% PIR, even where the personal marginal rate under IRD's brackets is 33% or 39%.
Since 1 April 2020, a mis-set PIR is reconciled by IRD at year end: overpaid PIE tax (PIR set too high) is refunded or credited in the year-end income-tax assessment, and underpaid PIE tax (PIR set too low) is included in that assessment. See our tax guide for the wider PIE mechanics and the calculator methodology page for the assumptions used across FundCompare's calculators.
What the calculator does not model
- The two-year test in one pass — IRD tests both of the two previous income years; the widget takes one year's figures at a time. Run it for each year and use the lower qualifying rate.
- Non-residents and entities — non-resident investors and entities such as companies and trusts have different PIR options (including 0%, where the investor pays tax through their own return). The widget covers NZ-resident individuals only.
- Exit-period timing and provider processing — a PIR change part-way through a year applies from when the provider processes it; deductions already made are left to the IRD year-end square-up.
- Foreign tax credits and FIF attribution — PIE funds holding offshore assets apply FIF rules and foreign tax credits at the fund level before income is attributed. The widget taxes the attributed PIE income figure you enter.
- Your actual filed income — the widget only sees what you type. IRD and your provider hold the authoritative figures, and IRD notifies providers of PIR corrections it identifies.
Frequently asked questions
- What is a PIR (Prescribed Investor Rate)?
- The PIR is the tax rate a Portfolio Investment Entity (PIE) uses to tax investment income attributed to you. Every KiwiSaver scheme is a PIE, so the PIR applies to the investment earnings in your KiwiSaver account as well as to other PIE funds. For NZ-resident individuals the three PIR rates are 10.5%, 17.5%, and 28%. The PIE deducts the tax on your behalf, and the income does not appear in your personal tax return.
- How is my PIR worked out?
- IRD's test looks at each of the two previous income years. For a year, the 10.5% rate applies if your taxable income was $15,600 or less AND your taxable income plus PIE income was $53,500 or less; the 17.5% rate applies if taxable income was $53,500 or less AND the combined total was $78,100 or less; otherwise the rate is 28%. If the two years support different rates, the lower rate applies. These thresholds took effect on 1 April 2025 — IRD publishes the current test at ird.govt.nz.
- What happens if my PIR is set too high?
- Since 1 April 2020, IRD reconciles PIE tax at the end of every tax year. PIE tax overpaid because a provider held a PIR higher than your income supports is refunded or credited through your year-end income-tax assessment. Before the 2020 rule change, overpaid PIE tax was not refundable — that is no longer the case.
- What happens if my PIR is set too low?
- The shortfall is collected through the same IRD year-end square-up: underpaid PIE tax is included in your end-of-year income-tax assessment. Updating the PIR your provider holds keeps tax deducted during the year in line with the rate your income supports, rather than settling the difference at year end.
- Why is the top PIR 28% when the top income tax rate is 39%?
- 28% is a statutory cap on the PIR — PIE income is never taxed above 28%, even for investors whose personal marginal rate is 33% or 39%. This is the structural reason PIE tax on the same income can be lower than personal-rate tax for higher earners. The calculator shows both figures side by side.
- Are the calculator's numbers exact?
- No — every figure is illustrative. The widget applies IRD's published thresholds to the figures you type for a single income year; it does not see your actual filed income, both prior years, joint or trust structures, or non-resident rates. Your provider and IRD hold the authoritative numbers. Confirm your PIR with IRD's own tool or a licensed financial adviser.
Related pages
- How KiwiSaver schemes are taxed — PIE mechanics, FIF rules, withdrawal treatment
- PIR — glossary definition
- Retirement calculator — long-horizon projections
- Fees-impact calculator — how fees compound over time
- Calculator methodology · Data sources
