You pay tax on the money you earn from your KiwiSaver investment. The IRD calls the tax rate you pay a ‘PIR’, which is short for ‘prescribed investor rate’.
If, in either of the previous two income tax years, your taxable income was $48,000 or less, your PIR is 10.5%.
If, in either of the previous two income tax years, your taxable income was between $48,001 and 70,000, your PIR is 17.5%.
If, in both of the two previous income years, your taxable income was $70,001 or more, your PIR is 28%.
You’re required to update your PIR rate, as it changes, with the IRD. To update your PIR, you can inform us, or inform the IRD directly.
For more information, please see the IRD website on PIR rates here.