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Aggregate taxable income declared by taxpayers in each income band

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, 2007 and 2015 tax years).

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.

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