Calculate your Inland Revenue Prescribed Investor Rate (PIR — 10.5%, 17.5%, 28%) under the 2-year look-back rule and quantify compound tax savings vs standard marginal rates.
Lowest look-back year applied
33% vs marginal tax rate
After PIE tax deduction
Extra wealth generated via PIE
Enter income for the two previous tax years. The lower calculated rate legally applies.
Compare PIE fund after-tax returns against holding non-PIE assets at your marginal rate.
Demonstrating how reinvested tax savings accelerate compound wealth inside PIE structures.
| Horizon | PIE Fund Portfolio | Standard Non-PIE (33%) | PIE Wealth Advantage |
|---|---|---|---|
| Year 1 | $105,775 | $104,690 | +$1,085 |
| Year 3 | $118,345 | $114,740 | +$3,605 |
| Year 5 | $132,408 | $125,755 | +$6,653 |
| Year 10 | $175,320 | $158,144 | +$17,176 |
\text{Look-Back Rule:} \; \text{PIR} = \min(\text{PIR}_{Year1}, \text{PIR}_{Year2}) \\
\\
\text{PIR Brackets for Individuals:} \\
\begin{cases}
10.5\% & \text{if } \text{Taxable} \le \$14,000 \text{ and } (\text{Taxable} + \text{PIE}) \le \$48,000 \\
17.5\% & \text{if } \text{Taxable} \le \$48,000 \text{ and } (\text{Taxable} + \text{PIE}) \le \$70,000 \\
28.0\% & \text{in all other cases (maximum statutory cap)}
\end{cases} \\
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\text{Annual Tax Savings} = \text{Gross Return} \times (\text{Marginal Rate} - \text{PIR})Under Inland Revenue (IRD) legislation, an individual investor's Prescribed Investor Rate (PIR) is determined using the two-year look-back rule: you qualify for the lowest rate calculated across either of the previous two tax years. Because PIE tax is legally capped at 28%, investors in the 30%, 33%, or 39% marginal brackets save significant tax annually that compounds tax-free over time.
All calculations, amortizations, and scenario projections displayed on this page are strictly for informational and educational purposes. Nothing herein constitutes investment, financial, tax, or legal advice. Actual Reserve Bank of New Zealand (RBNZ) interest rates, IRD PAYE brackets, ACC Earner's Levy, KiwiSaver regulations, and lender criteria may vary. Calconova explicitly disclaims all liability for any decisions taken based upon these calculations. Consult a qualified financial advisor, CPA, or official Inland Revenue documentation prior to executing financial commitments.
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