Auckland pays just under 38 percent of the country’s personal tax, and has just over 33 percent of the population.
Photo: RNZ
How much of the country’s total personal tax bill is your region picking up?
If you are in Auckland or Wellington, the answer may be more than you might think.
Inland Revenue data covering personal taxable income and income tax attributable to individuals shows that Auckland pays just under 38 percent of the country’s personal tax, and has just over 33 percent of the population. This is based on information for the 2023 financial year – the data for the 2025 year is not yet available.
Wellington pays 12.7 percent and has 10.5 percent of the population.
Waikato, in contrast, has 8.8 percent of the population but pays only 8.3 percent of the tax bill. Northland has 3.5 percent of the population and 2.8 percent of the tax bill.
Whanganui/Manawatu has 4.8 percent of the population and only 4 percent of the bill.
On a per-individual basis, Wellington has the highest personal tax bill at $12,300. Auckland is just behind at $11,500 and Canterbury is in third place with $9900. Otago is fourth at $9700.
Gisborne has the lowest at $7700.
Much of the variation can be explained by different areas’ income.
Auckland and Wellington are the areas of the country with the highest incomes, followed by Canterbury and Waikato.
Infometrics chief executive Brad Olsen said Auckland and Wellington had more people in the higher tax brackets who paid more tax.
“We know, for example, that Wellington City, rather than region, has the highest personal incomes in the country. Infometrics estimates show that Wellington region average annual personal earnings were around $90,600 and about $88,600 for the Auckland region. Those were the only two regions above the national average.
“If you look at the likes of the West Coast, which has got a fairly small proportion, and smaller than its total population. Even though the West Coast actually has some reasonable average earnings, that much smaller population is showing through there in terms of where they sit.”
He said Bay of Plenty, Manawatu, Northland and Hawke’s Bay all stood out for the gap between their population proportion and the proportion of tax paid.
“The likes of Northland especially, you know, you’ve often got a high level of benefit dependency there, and potentially also more people that at the very margins might not participate quite as much with government… probably operating a little bit further away from the strict expectations of the IRD.
“Not necessarily trying to circumvent the law, just that you find some rural provincial economies that often more cash based, or operate sort of more in a community setting.”
Simplicity economist Shamubeel Eaqub said it was interesting to consider the tax paid compared to where the government spent its money.
“Last time I looked at it which was years ago, places like Auckland paid more into central government coffers than they took out in public services… large, dense places that are rich will redistribute. That’s what the redistribution mechanism is for… poverty is quite often disproportionate. We tend to have a lot more deprivation in rural New Zealand.”
Olsen said it was a hard question to contemplate.
“Transport funding, for example. That can sort of fluctuate quite a lot year on year … when the Waikato Expressway or Transmission Gully were getting built, those regions probably got quite a lot relative to otherwise, but they’re maybe not getting nearly as much now.”
He said areas where larger numbers of people were on NZ Super could also be receiving more government funding than others.
“There are a few hotspots across the country where there’s a higher average age proportionately – Thames Coromandel, the likes of Kapiti District and similar, so those areas will have more as well. And then it’s also going to be areas that have a greater government workforce concentration. The likes of Auckland and Wellington do generally have a fairly large workforce concentration, particularly Wellington, of course.
“A reasonable amount of the Wellington city economy is driven by the pay and work of the government workforce.”
How does your region compare?
Wellington
$12,300 per individual
10.5 percent of the population and 12.7 percent of tax paid
Total of more than $6.2 billion in tax paid
Auckland
$11,500 per individual
33.4 percent of the population and 37.7 percent of tax paid
Total of nearly $18.5 billion in tax paid
Canterbury
$9900 per individual
12.9 percent of the population and 12.6 percent of tax paid
Otago
$9700 per individual
4.1 percent of the population and 4 percent of tax paid
Waikato
$9500 per individual
8.8 percent of population and 8.3 percent of tax paid
Taranaki
$9300 per individual
2.5 percent of population and 2.3 percent of tax paid
Nelson
$9100 per individual
1.2 percent of population and 1.1 percent of tax paid
Bay of Plenty
$9100
6.87 percent of population and 6 percent of tax paid
Southland
$8900 per individual
2.1 percent of population and 1.8 percent of tax paid
Marlborough
$8900 per individual
1 percent of population and 0.8 percent of tax paid
Tasman
$8700 per individual
1 percent of population and 0.8 percent of tax paid
Hawke’s Bay
$8400 per individual
3.7 percent of population and 3.1 percent of tax paid
Manawatū-Whanganui
$8400 per individual
4.8 percent of population and 4 percent of tax paid
Northland
$8100 per individual
3.5 percent of population and 2.8 percent of tax paid
West Coast
$7800 per individual
0.6 percent of population and 0.5 percent of tax paid
Gisborne
$7700 percent of individual
1 percent of population and 0.8 percent of tax paid
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