Most New Zealanders set their PIR once when they join KiwiSaver and never look at it again. A single income change can mean you're overpaying — or underpaying — for years without knowing.
PIR stands for Prescribed Investor Rate. It's the tax rate applied to income you earn from KiwiSaver and other multi-rate PIE (Portfolio Investment Entity) funds — managed funds that calculate and pay tax on your behalf at your individual rate.
Unlike ordinary income tax, PIE tax is handled by your fund manager, not by you. Every year your fund attributes income to you and pays IRD tax at your PIR. You don't declare this income in your tax return — it's a final tax. Your only responsibility is making sure your fund has the right rate on file.
Your PIR can be 10.5%, 17.5%, or 28%, based on your income over the prior two tax years. The crucial detail: the maximum PIR is 28%, regardless of your marginal income tax rate. Someone earning $200,000 and paying 39% income tax on their salary still only pays 28% on their KiwiSaver returns.
A high earner on the 39% marginal rate pays 39% on salary, 33% on bank interest, but only 28% on KiwiSaver returns. On a $150,000 KiwiSaver balance earning 7% ($10,500), the cap saves $1,155 per year in tax compared to being taxed at 39%. Over a 20-year career, that difference compounds significantly.
PIE funds include KiwiSaver schemes (Simplicity, Kernel, Milford, Fisher Funds, Generate, Booster, SuperLife and bank schemes), multi-rate PIE managed funds, and PIE term deposits offered by banks. Standard term deposits are not PIE products — they're taxed at your marginal rate via RWT.
For NZ tax resident individuals who have provided their IRD number, there are three rates. The thresholds below are current from 1 April 2025:
If you joined KiwiSaver and never set a PIR, or never updated it after your income changed, your fund is using 28%. IRD requires funds to apply 28% when no PIR is provided. Many New Zealanders earning under $53,500 are on 28% right now — and their providers won't fix it without being told.
Your PIR is not based on your current year income. It looks backwards at the two most recently completed tax years. Your PIR for 2025–26 is based on income earned in the years ending 31 March 2024 and 31 March 2025.
You use whichever of those two years gives you the lower PIR. You don't need both years to be below a threshold — one year is enough to unlock a lower rate. This is the detail most people miss, and it works strongly in favour of anyone who had a lower-income year recently.
If you earned $70,000 in 2023–24 but only $48,000 in 2024–25 (parental leave, career break, part-time year), your 2024–25 income is below $53,500 — so your PIR for 2025–26 is 17.5%, not 28%. The lower year wins.
There is one exception. Even if your base taxable income is below $53,500 in both years, if your taxable income plus PIE income exceeded $78,100 in either year, your PIR is 28%. Add your attributed PIE income (from your annual PIE tax certificate) to your taxable income when running this check.
From 1 April 2025, all PIR income thresholds increased as part of the broader personal tax changes announced in Budget 2024. This is the first change to PIR thresholds in many years and it directly benefits anyone whose income sits between the old and new thresholds.
| PIR | Old threshold (to 31 Mar 2025) | New threshold (from 1 Apr 2025) | Increase |
|---|---|---|---|
| 10.5% | ≤ $14,000 | ≤ $15,600 | +$1,600 |
| 17.5% | ≤ $48,000 | ≤ $53,500 | +$5,500 |
| 28% upper check | > $70,000 incl. PIE | > $78,100 incl. PIE | +$8,100 |
If your income was between $48,001 and $53,500 in either of the last two tax years and you're currently on 28%, check the new threshold immediately. You may now qualify for 17.5%. On a $50,000 KiwiSaver balance earning 6%, that's a saving of around $255 per year — every year, compounding.
When calculating your PIR, include all of the following for each prior year:
Do not include: most government benefits (Working for Families, main benefit, NZ Superannuation above the income threshold), child support received, or income exempt under transitional residency rules.
Your annual PIE income is shown on the tax certificate your fund issues after 31 March each year. You can also find it in myIR — IRD receives this data directly from your fund.
Using a PIR higher than required is allowed and carries no penalty. At year end, IRD calculates a PIE tax credit for the difference. This credit is first applied against any income tax you owe; if the credit exceeds your bill, the remainder is refunded in cash.
The problem is timing and compounding. Tax deducted from your KiwiSaver throughout the year is money that isn't growing in your fund. The refund arrives months later with no interest — you've effectively given IRD an interest-free loan.
Using a PIR lower than required means a tax bill at year end. IRD calculates the shortfall as a PIE debt and adds it to your income tax assessment. There is no grace period and no waiver. If you believe your PIR may be too low, update it immediately to stop the debt growing.
The real cost isn't just the annual tax difference — it's the growth that never happened on the money deducted throughout the year. Correcting your PIR today stops that clock immediately.
Log in to myIR and check your income summary for 2023–24 and 2024–25. Add up all taxable income sources and include your attributed PIE income shown on your income summary.
Use the free PIR calculator on this site — enter both years of income and get your correct rate instantly. Or use IRD's PIR tool directly at ird.govt.nz.
Find the PIR or tax settings section in your fund's online portal. Most major NZ providers allow updates in under two minutes. If you have multiple funds or PIE investments, update each provider separately.
Your new PIR applies from the date you notify your fund. Tax already deducted before that date is not recalculated — IRD handles any year-end reconciliation.
Your PIR needs reviewing annually. A pay rise, new income source, job change, or rental property can shift your correct rate. Your fund will never prompt you to do this.
| Simplicity | Log in → Account Settings → Tax Details → PIR |
| Kernel | Log in → Profile → Tax Settings → PIR |
| Milford | Log in → My Details → Tax Information → PIR rate |
| Fisher Funds | Log in → My Profile → Tax Rate → update PIR |
| Generate | Log in → Settings → Tax Details → PIR |
| BNZ KiwiSaver | Internet Banking → KiwiSaver → Manage → Tax rate |
| ANZ KiwiSaver | goMoney → KiwiSaver → Details → PIR |
| ASB KiwiSaver | ASB Online → KiwiSaver → My Details → Tax rate |
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