IRD PIR Rates NZ 2026: Prescribed Investor Rate Explained
Last Updated: August 2026
IRD PIR Rates NZ 2026
PIR stands for Prescribed Investor Rate. It is the tax rate used by a multi-rate Portfolio Investment Entity (PIE) to calculate tax on investment income. For New Zealand resident individuals, the main PIR rates are 10.5%, 17.5% and 28%.
- 10.5% PIR: Generally applies to qualifying lower-income investors.
- 17.5% PIR: Generally applies to investors who meet the middle-income requirements.
- 28% PIR: Generally applies when the investor does not qualify for the lower PIR rates.
- PIR can apply to KiwiSaver and other PIE investments.
- Your PIR is generally determined using your taxable income and PIE income from the relevant previous two tax years.
- Using a PIR that is too low can result in a PIE tax liability at the end of the year.
- If your circumstances change, you should review your PIR and notify your PIE or KiwiSaver provider where appropriate.
Quick answer: If you have KiwiSaver or another PIE investment, your PIR determines how much tax your investment provider calculates on your PIE income. The correct rate depends on your income history, so it should be reviewed regularly.
Understanding the IRD PIR rates NZ 2026 is important if you have KiwiSaver, managed funds or other PIE investments, because the rate affects how much tax is calculated on your investment income.
IRD PIR Rates NZ 2026: Quick Answer
If you have money invested in a KiwiSaver scheme, managed fund or another Portfolio Investment Entity (PIE), you may need to choose a Prescribed Investor Rate (PIR).
Your PIR determines how much tax your PIE provider calculates on your investment income.
For New Zealand resident individuals, the main PIR rates are 10.5%, 17.5% and 28%. The correct rate depends on your income in the previous two tax years, including certain PIE income.
Choosing the correct PIR is important. If you use a rate that is too low, you may have additional tax to pay when Inland Revenue completes its end-of-year calculation. If you use a rate that is too high, you may receive a PIE tax credit depending on your circumstances.
What Is a PIR?
PIR stands for Prescribed Investor Rate.
It is the tax rate a multi-rate Portfolio Investment Entity (PIE) uses to calculate tax on income earned from your investment.
A PIE can include:
- KiwiSaver schemes
- Managed investment funds
- Certain superannuation schemes
- Other managed investment products
Your PIE provider uses the PIR you provide to calculate tax on your share of PIE income.
IRD explains that your KiwiSaver scheme might be a multi-rate PIE, meaning the PIR rules can apply to your KiwiSaver investment.
Simple PIR Example
Suppose your investment earns $1,000 of PIE income and your PIR is 17.5%.
The PIE provider would generally calculate tax of:
$1,000 × 17.5% = $175
The actual calculation can be more complicated depending on the type of PIE, your investment and your circumstances.
What Are the PIR Rates in New Zealand for 2026?
For New Zealand tax-resident individuals, there are three main PIR rates:
| PIR Rate | General Income Position |
|---|---|
| 10.5% | Generally applies to qualifying lower-income investors. |
| 17.5% | Generally applies to investors who meet the relevant middle-income requirements. |
| 28% | Generally applies when the investor does not qualify for the lower PIR rates. |
The important point is that PIR is not simply based on your current salary.
IRD uses your taxable income and PIE income from the relevant previous two tax years to determine the appropriate rate.
How Do You Calculate Your PIR?
This is where PIR can become confusing.
For individuals, you generally look at your income for each of the two previous tax years.
The calculation considers:
Taxable income + relevant PIE income
When determining the PIR for a tax year, Inland Revenue uses the applicable income information from the previous two years. If you qualify for different PIR rates in those two years, the lower PIR rate is generally used.
10.5% PIR
Generally applies where, in either of the relevant previous two years:
- Your taxable income was $14,000 or less, and
- Your taxable income plus PIE income was $14,000 or less.
17.5% PIR
Generally applies where:
- Your taxable income was $48,000 or less, and
- Your taxable income plus PIE income was $70,000 or less,
- Provided the requirements for the 10.5% rate are not met.
28% PIR
Generally applies where you do not qualify for either the 10.5% or 17.5% PIR based on the applicable previous-year tests.
The important point is that you need to consider both taxable income and PIE income, rather than simply looking at your salary.
Why Does PIR Use Your Previous Two Years of Income?
You might wonder why your PIR isn’t simply based on your income today.
IRD uses the previous two tax years because your PIR is intended to reflect your income position based on historical income information.
For example, when determining the PIR for a particular tax year, you need to look at the relevant previous two tax years specified by Inland Revenue for that year.
This means your PIR can sometimes remain different from what you might expect based solely on your current salary.
Does PIR Apply to KiwiSaver?
Yes.
Your KiwiSaver scheme may be a multi-rate PIE, meaning PIR rules can apply to the investment income earned within your KiwiSaver account.
Your KiwiSaver provider generally uses your PIR to calculate tax on your investment income.
This is one reason it is important to make sure your KiwiSaver provider has your correct PIR and IRD number.
Important Distinction
Your KiwiSaver contribution rate is not the same as your PIR.
Your contribution rate determines how much of your pay goes into KiwiSaver.
Your PIR determines the tax rate used on applicable PIE investment income.
They are two completely different rates.
What Is PIE Income?
PIE stands for Portfolio Investment Entity.
A PIE is an investment entity that uses special tax rules for calculating tax on investment income.
Examples can include:
- KiwiSaver schemes
- Managed funds
- Certain investment funds
- Other PIE investments
If you invest in a multi-rate PIE, the PIE generally calculates tax on your investment income using your PIR.
What Happens If You Choose the Wrong PIR?
Using the wrong PIR can affect your final tax position.
If Your PIR Is Too Low
You may not have paid enough tax on your PIE income.
IRD can calculate a PIE tax debt as part of your end-of-year income tax assessment.
That debt can be added to the tax you owe.
If Your PIR Is Too High
You may have paid more tax than necessary.
Depending on your circumstances, this can result in a PIE tax credit.
IRD’s end-of-year calculation determines whether the appropriate amount of tax was paid.
Example
Imagine an investor used a PIR of 28%, but their correct PIR should have been 17.5%.
If their PIE income was $2,000:
Tax deducted at 28%: $560
Tax at 17.5%: $350
Difference: $210
The actual tax outcome depends on the investor’s circumstances and Inland Revenue’s end-of-year calculation, but this illustrates why using the correct PIR matters.
What Happens If You Do Not Give Your PIE Your PIR?
If you don’t provide your PIR to your multi-rate PIE, the default rate is generally 28%.
This could be higher than the rate you actually qualify for.
IRD recommends providing your PIR and IRD number to your PIE and reviewing your PIR each year.
New investors should also provide the required information to their PIE provider within the applicable timeframe.
How Do I Change My PIR?
If your circumstances change and your PIR needs to change, you should tell your PIE provider or KiwiSaver provider.
The process depends on the provider.
Generally, you can:
- Work out your correct PIR.
- Contact your KiwiSaver or PIE provider.
- Update your PIR through the provider’s online account or process.
- Make sure your IRD number is also recorded correctly.
- Review your PIR again when your circumstances change.
IRD recommends reviewing your PIR each year and notifying your multi-rate PIE if it needs to change.
How Often Should You Check Your PIR?
You should review your PIR each year.
This is particularly important if your income has changed significantly.
For example, your PIR may need reviewing if you:
- Started a new job
- Received a significant pay increase
- Became self-employed
- Started earning investment income
- Received PIE income
- Stopped working
- Had a significant change in taxable income
- Changed your investment arrangements
Your PIE provider may also ask you to confirm your PIR.
The IRD PIR rates NZ 2026 for individual investors are 10.5%, 17.5% and 28%, with the correct rate depending on your relevant income history.
Using the wrong IRD PIR rates NZ 2026 can result in too much or too little tax being calculated on your PIE investment income.
Is PIR the Same as Your Income Tax Rate?
No.
This is a common misunderstanding.
Your normal income tax rate and your PIR are calculated under different rules.
For individuals, the main PIR rates are 10.5%, 17.5% and 28%.
Your normal income tax rates can be different.
PIE investment income is generally taxed within the PIE system rather than simply being added to your other taxable income in the same way as salary or wages.
Can I Use a 0% PIR?
For most New Zealand resident individuals, the standard PIR options are 10.5%, 17.5% and 28%.
However, IRD notes an exception for certain individuals with a four-year temporary tax exemption who invest in a zero-rate PIE. In that specific situation, a 0% PIR may be available.
If you are a recent migrant or have recently become a New Zealand tax resident, your situation may therefore require additional consideration.
What About Joint Investments?
Joint investors need to consider their PIR separately.
When joint investors invest in a multi-rate PIE, each investor needs to provide their own PIR and IRD number to the PIE.
Your PIR is based on your own circumstances rather than simply using one rate for everyone on the investment.
When checking the IRD PIR rates NZ 2026, you need to consider both your taxable income and relevant PIE income from the applicable previous tax years.
What About PIR for Companies and Trusts?
The PIR rules aren’t limited to individuals.
Companies, trusts, superannuation funds, charitable trusts and other types of investors can have different rules.
For example, IRD provides specific rules for trusts investing in multi-rate PIEs, including different consequences depending on the applicable PIR and the type of investor.
If a trust, company or other entity is investing in a PIE, don’t automatically use the individual PIR rules.
Professional tax advice may be appropriate.
PIR vs KiwiSaver Contribution Rate
These two terms are often confused.
| PIR | KiwiSaver Contribution Rate |
|---|---|
| Tax rate on applicable PIE investment income | Amount contributed from your pay |
| Usually 10.5%, 17.5% or 28% for individuals | Contribution percentage selected under KiwiSaver rules |
| Based on applicable income history | Determines how much you contribute to KiwiSaver |
| Used by the PIE | Usually deducted through payroll or paid to the provider |
From 1 April 2026, the default KiwiSaver contribution rate increased from 3% to 3.5%, with a further increase scheduled for 1 April 2028. This is a KiwiSaver contribution change, not a PIR change.
Using the wrong IRD PIR rates NZ 2026 can result in too much or too little tax being calculated on your PIE investment income.
How Can I Find My PIR?
IRD provides an online tool that asks questions about your tax residency and previous income to help determine your PIR.
You can use the official IRD prescribed investor rate tool to work through your circumstances.
However, if your situation involves multiple income sources, trusts, companies, overseas income or complicated PIE investments, the result may require professional interpretation.
Frequently Asked Questions About PIR
What does PIR stand for in New Zealand?
PIR stands for Prescribed Investor Rate. It is the tax rate used by a multi-rate PIE to calculate tax on income from your investment.
What are the PIR rates in NZ for 2026?
For New Zealand resident individuals, the main PIR rates are 10.5%, 17.5% and 28%. Your correct rate depends on the relevant income tests using your previous two tax years.
What is the 28% PIR rate?
A 28% PIR is the highest standard PIR for New Zealand resident individuals investing in a multi-rate PIE. It generally applies when the investor does not meet the requirements for the 10.5% or 17.5% rates.
What happens if I choose the wrong PIR?
If you use a PIR that is too low, you may have a PIE tax debt after IRD completes its end-of-year calculation. If you use a rate that is too high, you may receive a PIE tax credit depending on your circumstances.
Does PIR apply to KiwiSaver?
Yes. A KiwiSaver scheme may be a multi-rate PIE, so the PIR rules can apply to investment income earned through KiwiSaver.
How often should I check my PIR?
You should review your PIR at least annually and whenever your income circumstances change. IRD recommends investors review their PIR each year.
Can I change my PIR?
Yes. If your PIR needs to change, you should notify your PIE or KiwiSaver provider so they can use the appropriate rate for future calculations.
Is PIR the same as PAYE?
No. PIR and PAYE are different tax systems. PAYE is generally deducted from employment income, while PIR is used by multi-rate PIEs to calculate tax on applicable investment income.
Need Help Working Out Your PIR?
Choosing the correct IRD PIR rate can be confusing when you have multiple income sources, PIE investments, KiwiSaver, self-employment income or other tax considerations.
IRD Guru can help you understand your New Zealand tax obligations and determine what information you need to consider when reviewing your PIR.
If you’re unsure whether your current PIR is correct, don’t wait until the end of the tax year to find out.
Official IRD Resources
- Find Your Prescribed Investor Rate (PIR)
- IRD PIR Rates and PIE Information
- IRD Information on Multi-Rate PIEs
- IRD KiwiSaver Changes
Why Getting Your PIR Right Matters
Your PIR determines how a multi-rate PIE calculates tax on your investment income. Choosing the wrong rate can result in additional tax, unnecessary complications or the need to correct your tax position later.
Reviewing your PIR each year is a simple step that can help you keep your investment tax position up to date.
If your income, residency or investment circumstances have changed, it is worth checking whether your PIR still reflects your circumstances.
Unsure About Your PIR or PIE Tax?
Whether you have KiwiSaver, managed funds, PIE investments or a more complex investment structure, getting the tax treatment right can make a difference.
IRD Guru provides practical New Zealand tax guidance to help individuals and businesses understand their IRD obligations.
If you’re unsure which of the IRD PIR rates NZ 2026 applies to you, reviewing your previous two years of income can help you identify the appropriate rate.
Disclaimer
This article provides general information about IRD PIR rates, PIE income, KiwiSaver and New Zealand tax rules. It is not personalised tax, financial or investment advice. PIR rules can depend on your income, residency, investment structure and other circumstances. Always check your situation against current Inland Revenue guidance or speak with a qualified tax professional.