KiwiSaver and Tax
Find out how your contributions and your investment income are taxed
Updated 13 September 2024
​Your contributions
Your KiwiSaver contributions are calculated on your before-tax pay. However, you still pay tax on the full amount that you earn.
For example, if you earned $100 and had 8% ($8) KiwiSaver contributions deducted, you would still pay tax on the full $100.
For example, if you earned $100 and had 8% ($8) KiwiSaver contributions deducted, you would still pay tax on the full $100.
​Your employer contributions
All employer superannuation cash contributions (employer contributions) will be liable for tax. This means that there may be a reduced amount of employer contributions being paid into your KiwiSaver scheme.
​Your KiwiSaver investment income
Your investment earnings are taxed. This tax will be deducted by your KiwiSaver provider. Your provider then pays the tax to Inland Revenue on your behalf.
A scheme can be a:
A scheme can be a:
- Widely-held superannuation fund - your investment earnings will be taxed at 28%
- Portfolio investment entity (PIE) - the tax rate for your investment earnings from a PIE is referred to as your prescribed investor rate (PIR). Your provider will ask you for your PIR every year. All of the KiwiSaver default schemes are portfolio investment entities (PIEs).
- Your product disclosure statement will tell you what type of scheme you have. The scheme types have different tax rates on their investment earnings.
KiwiSaver withdrawals
Withdrawals from your KiwiSaver account are tax-free.
Credit: This information originally appeared on kiwisaver.govt.nz before the website was closed down. MoneyHub's research team continues to keep it up to date.
Related Guides
- PAYE tax rates guide
- PAYE calculator
- KiwiSaver Hardship - if you're a KiwiSaver member and struggling with your finances, our guide explains everything you need to do to ask for an early redemption
- Contributions holiday - if you're wanting to take a break from contributing, our guide explains your options
- KiwiSaver First Home Withdrawal Guide - if you want to use your KiwiSaver balance for a house deposit, our guide explains everything you need to know
- Your KiwiSaver contributions - You can choose how much to contribute. Find out what happens when you go on leave, receive a benefit or entitlement, or have a tax debt
- Your employer's KiwiSaver contributions - If you're a KiwiSaver member making contributions from your pay, your employer will also contribute to your KiwiSaver savings
- Government KiwiSaver contributions - To help you save, the Government will make an annual contribution towards your KiwiSaver account as long as you meet certain conditions.
- Voluntary contributions - make voluntary contributions (or lump sum payments) at any time, either directly to your KiwiSaver provider or through Inland Revenue
- How to check your KiwiSaver contributions - Keeping track of your KiwiSaver contributions is easy with 'My KiwiSaver'
- KiwiSaver Withdrawal - If you joined KiwiSaver on or after 1 July 2019, you can withdraw your savings when you qualify for NZ Super (currently 65)
- KiwiSaver Providers - You can choose which scheme to join, even if you're provisionally allocated to an employer-chosen/default scheme
- Opting out of KiwiSaver - If you're a new employee who's been automatically enrolled, you can choose to opt out of KiwiSaver
- KiwiSaver Fund Selection Guide - 10 Must-Know Facts Revealing Everything You Need To Know About KiwiSaver
- KiwiSaver Calculator - our retirement calculator considers KiwiSaver contributions, how much you earn right now, how much you plan to spend during retirement, and how old you are, among other factors
