What is PIR Rate (Prescribed Investor Rate)?
The PIR (Prescribed Investor Rate) is the tax rate applied to your KiwiSaver investment earnings. It ranges from 10.5% to 28% based on your income.
Detailed Explanation
Your PIR determines how much tax is deducted from your KiwiSaver investment returns. The three PIR rates are: 10.5% (if income is $15,600 or less), 17.5% (if income is $15,601-$53,500), and 28% (if income is over $53,500). It is important to have the correct PIR—if it is too low, you may face a tax bill.
Example
If your KiwiSaver fund earns $1,000 in returns and your PIR is 28%, you will pay $280 in tax, leaving you with $720 in net returns.
Frequently Asked Questions
How do I find my correct PIR rate?
Check your taxable income from the past two years. If it is $15,600 or less, your PIR is 10.5%. Between $15,601-$53,500, it is 17.5%. Over $53,500, it is 28%.
Can I change my PIR rate?
Yes, contact your KiwiSaver provider to update your PIR. You should review it annually.