In the year to June 2025, taxes on individuals contributed 51% of the total Inland Revenue (IR) tax revenue and net Customs GST, an increase of 1% since the year to June 2024.
This graph has 4 lines showing the relative shares of components of Net Inland Revenue taxes and Customs GST from June 2002 to June 2025. Because these are relative shares, they all add to 100%. The graphed components from largest to smallest are taxes on individual, GST, taxes on companies, and duties and other revenue streams.
On 1 October 2010, the rate of GST was increased from 12.5% to 15% and the tax rates on personal incomes were reduced. The company income tax rate was also reduced in the 2009 and 2012 tax years. The combined effect of these changes was to increase the overall proportion of taxes collected as GST while reducing the taxes collected from individuals and companies.
On 1 April 2021 top personal tax rate of 39% in income over $180,000 was introduced, increasing the relative share of taxes on individuals.
On 31 July 2024 the personal income tax rate thresholds were increased, with the thresholds changing as:
- the $14,000 threshold increased to $15,600 for the 10.5% personal tax rate
- the $48,000 threshold increased to $53,500 for the 17.5% personal tax rate
- the $70,000 threshold increased to $78,100 for the 30% personal tax rate.
These more recent changes dampened growth in taxes on individuals but there was still an increase in the relative share of revenue from taxes on individuals from 50% in 2024 to 51% in 2025. A contributing factor is much smaller taxation of dividends in 2025 compared to 2024, dampening the share of taxes on companies.