Tax rates

Depending on the type of savings account or investment you have, your income may be taxed using either a Resident Withholding Tax (RWT) or Prescribed Investor Rate (PIR).

• RWT applies to things like bank interest and some dividends. Your bank or investment provider deducts the tax before paying you.
• PIR applies to income from Portfolio Investment Entities (PIEs), including most KiwiSaver funds and many managed funds.

Find the right tax rate

Choosing the wrong tax rate could mean you get a tax bill at the end of the year or pay too much tax.

Use Inland Revenue’s guidance to work out the correct rate:

• Using the right resident withholding tax (RWT) rate Inland Revenue
• Find your prescribed investor rate (PIR) Inland Revenue

Special situations

Different tax rules may apply if you:

• have overseas investments
• receive an overseas pension or foreign superannuation
• are not a New Zealand tax resident
• are a new resident or returning New Zealander
• think you may qualify for an RWT exemption.

Find out more from Inland Revenue:

• International tax Inland Revenue
• Foreign superannuation Inland Revenue
• Tax residency status for individuals Inland Revenue
• Temporary tax exemption Inland Revenue
• Getting an exemption from paying resident withholding tax (RWT) Inland Revenue