Inland Revenue data for the tax year ended 31 March 2026 show the top 10 percent of New Zealand wage and salary earners required at least $134,568 to qualify.
IRD's 2026 wage data show nominal gains concentrated at the bottom of the distribution while top earners' real incomes stagnated or fell.
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New Zealand's core Crown tax revenue reached $31.5 billion in the three months to 30 September 2026, $420 million or 1.2 percent above the Pre-election Economic and Fiscal Update forecast.
The government recorded an OBEGALx deficit of $2.8 billion for the three months ended 30 September 2026. This was $1.3 billion smaller than the Pre-election Economic and Fiscal Update 2026 forecast.
The New Zealand government posted an OBEGALx deficit of $2.824 billion for the three months ended 30 September 2026. This result came in $1.32 billion smaller than the PREFU 2026 forecast.
Inland Revenue data for the tax year ended 31 March 2026 show the top 10 percent of New Zealand wage and salary earners required at least $134,568 to qualify.
Inland Revenue released updated wage and salary distribution statistics in August 2026. The figures cover all 2,840,300 individuals with wage or salary income and draw on comprehensive PAYE and tax assessment records.
The top 1 percent threshold stood near $289,000 to $290,000. Exactly 980 people recorded income of $1 million or more, more than double the 2019 count. These individuals received a collective $1.78 billion.
Total wage and salary income reached $199.7 billion. The top decile captured $57.9 billion, or 29 percent of the total. The bottom decile received $768 million, or 0.4 percent.
The median stood at $61,958. Some 620,460 earners, or 21.8 percent, exceeded $100,000. That share has risen from 7.4 percent a decade earlier.
| Metric | Value |
|---|---|
| Top 10% threshold | $134,568 |
| Top 1% threshold | ~$289,000–$290,000 |
| $1 million+ earners | 980 |
| Total wage income | $199.7 billion |
| Top 10% share | 29% ($57.9 billion) |
| Median income | $61,958 |
| Earners over $100,000 | 21.8% (620,460) |
Nominal gains from 2019 to 2026 proved strongest at lower percentiles. Gains reached approximately 60 percent at the 10th percentile and 61 percent at the 25th percentile, compared with 39 percent at the 90th percentile. Inflation over the period totalled about 30.5 percent.
In real 2019 dollars, lower and middle percentiles recorded modest gains while the 99th percentile saw a small decline of roughly $1,900. Economist Shamubeel Eaqub noted real incomes rose for the bottom half, especially the $60,000 to $100,000 band, while top earners experienced no real increase and the top 1 percent income share shrank slightly.
When you're earning a million dollars, even a 20 percent increase is quite a lot, but in real terms, they've had no increase. That's why, if you look at that share of income at the top 1 percent, it hasn't gotten that much bigger. It has, in fact, shrunk a little bit.
University of Otago economist Murat Ungor observed that the 39 percent top marginal tax rate introduced in 2021 may have prompted changes in how high earners receive income. Evidence on the extent remains limited.
The statistics capture only annual PAYE-reported wage and salary income. They exclude capital gains, retained company profits, and certain trust distributions. Earlier Inland Revenue analysis has shown effective tax rates for the wealthiest can fall below statutory top rates when all income forms are considered.
These distributions inform Treasury modelling of the personal income tax base. The top 10 percent of earners contribute a disproportionate share of collections. Taxpayers' Union analysis of 2024 data indicated the top 10 percent paid nearly 45 percent of personal income tax.
Treasury's December 2024 analytical note covering 2007 to 2023 found income inequality rose until around 2013 then declined, driven mainly by narrowing gaps between household types rather than within groups.
The release arrives amid moderate nominal wage growth. Stats NZ reported median weekly wages and salaries at $1,419 in the June 2026 quarter, up 2.8 percent year on year.
Policymakers will incorporate the updated percentiles into revenue forecasts and any future adjustments to tax thresholds or rates. High earners' behavioural responses to marginal rates remain a key variable for fiscal sustainability over the 2026 to 2029 horizon.
