myIR, payments and more
This section shows:
- estimates of the number of individuals in bands of:
- $1,000 taxable income up to $150,000, and
- $5,000 bands for taxable income from $150,000 to $250,000.
The estimate of the number of individuals with incomes greater than $250,000 was aggregated.
This section also shows aggregate taxable income and income tax for people in each income band. The income and tax information is derived from IR3 tax returns, personal tax summaries, and employer PAYE information.
Taxable income for individuals is income on which their personal income tax is assessed for the March year. For people with IR3 tax returns or personal tax summaries, this is income from all taxable sources less allowable deductions and losses. People with negative income because of losses are recorded as having nil taxable income in the tables. For people who are non-filers, taxable income is assumed to be their total PAYE gross earnings in the year ended 31 March. PAYE gross earnings can include income from employment, and also taxable welfare benefits, New Zealand Super, earnings-related ACC, student allowances, and paid parental leave.
The data for these statistics is available for download from the links below.
Income distributions of individual customers 2001 to 2016 | Excel | 92kb
Graph of Taxable income distribution
Long description of graph
This graph has three lines showing the taxable income distributions of individual customers by income band at three points in time (at the end of the 2001, 2008 and 2016 tax years).
All three income distributions follow the same general trend - following a right-tailed distribution. The taxable income distributions portray a number of "spikes" of taxable income. Below $25,000 the spikes reflect taxable transfers such as welfare benefits or NZ Super, with large numbers of people having the same taxable income. Above $25,000 the spikes typically occur at income tax thresholds. This is likely to reflect taxpayer responses to the increasing marginal rates that they face.
Graph of Aggregate taxable income declared by taxpayers in each income band
Long description of graph
This graph has three lines showing aggregate taxable income declared by taxpayers in each income band at three points in time (at the end of the 2001, 2008 and 2016 tax years).
The three aggregate taxable income distributions follow the same overall trend - following a right-tailed distribution. For taxable incomes greater than $40,000 the 2015/2016 distribution is higher than the 2008 distribution which, in turn, is higher than the 2000/2001 distribution.
Income tax for Individuals is calculated based on their taxable income. The table shows income tax before any allowances for tax credits such as imputation credits or Working for Families Tax Credits. Tax credits included on the IR3 or PTS have been applied (ie, the low income rebate (to 2009), independent earner tax credit (from 2010) and tax rebates on the IR3 and personal tax summary are applied) but the calculation does not include the donations, housekeeper or redundancy tax credits. For non-filers, income tax is calculated as if they had filed an annual return.