Responding to Nicola Willis’s comments that National will address bracket creep, the Taxpayers’ Union says the 30 percent income tax threshold should already be $56,801.95 and the 33 percent threshold $82,920.23.
The figures come from the our briefing paper The Inflation Tax, which shows where income tax thresholds would sit today if they had kept pace with inflation since they were last adjusted on 31 July 2024.
The current brackets compared with inflation-indexed brackets are:
| Tax rate | Current | If indexed |
|---|---|---|
| 17.5% | $15,600 | $16,562.81 |
| 30% | $53,500 | $56,801.95 |
| 33% | $78,100 | $82,920.23 |
| 39% | $180,000 | $191,109.38 |
Taxpayers’ Union spokesman Austin Ellingham-Banks said:
“Nicola Willis says National wants to tackle bracket creep. These figures show what that should look like.”
“Tax brackets should not quietly become tax rises just because prices and wages go up. If National is serious about ending bracket creep, thresholds need to move automatically with inflation rather than waiting for politicians to hand taxpayers some of their own money back."
“For someone on the median salary of $73,788, failing to index the brackets is already costing $480.14 a year. That bill will keep growing for as long as governments leave the thresholds frozen."
The Inflation Tax briefing paper can be found at: www.taxpayers.org.nz/inflation_tax_2026.
