How to find your PIR
The tax rate that applies to KiwiSaver and PIE investments is known as your Prescribed Investor Rate (PIR). If you don’t provide a PIR or your IRD number, your KiwiSaver and PIE income will automatically be taxed at a default rate of 28%.
If you are making a joint investment with different PIRs, the notified PIR on your joint account will be the higher of your individual PIRs.
Your PIR is calculated based on your income over the last two tax years. This is different to tax rates for other investments, which are based on your expected income over the next tax year.
As a general guide:
|Your taxable income||Most likely PIR|
|0 to $14,000||10.5%|
|$14,001 to $48,000||17.5%|
- Anyone that earned less than $14,000 in any one of the last two tax years will be on 10.5%.
- Anyone that did not earn less than $14,000 in at least one of the last two tax years, but earned less than $48,000 in any one of the last two tax years will be on 17.5%.
- Anyone that earned more than $48,000 in each of the last two tax years will be on 28%.
- If you are an overseas tax resident, your PIR is 28%.
- Young children will normally be on 10.5% because they are likely to have earned no taxable income, or earned income below $14,000 a year.
If you have trouble working out your PIR you should speak to a professional tax advisor or the Inland Revenue about which rate is right for you.