Labour wants to introduce a new top tax rate of 39 per cent for income earned over $180,000.
Currently, all income over $70,000 is taxed at 33 per cent.
Finance spokesperson Grant Robertson said the policy was about "maintaining investment in important services that are so crucial for New Zealanders like health and education, while keeping tax rates exactly the same as they are now for 98 per cent of people".
He said the policy was about "everyone pitching in to make sure we can recover and rebuild from Covid-19".
Robertson said the proposed tax rate would affect two per cent of New Zealanders, and does not impact income earned below $180,000.
He estimated it would generate $550m a year.
"The new rate will cost $23 a week ($1,200 a year) for an individual earning $200,000, but it will make a big difference to the country’s ability to maintain the investments needed for the economy to bounce back."
"The money raised will go towards keeping debt under control and making sure we can balance that with continued investments to create jobs, and support critical public services like health and education."
He pledged to not introduce any new taxes and would not increase the other tax brackets.
"The company tax rate is not changing, giving businesses continuity and certainty," Robertson said.
He also promised there would be no increases to fuel tax.
The Green Party's policy included raising income tax on income over $100,000 to 37% and to 42% on income over $150,000.
Labour also promised to close "loopholes so multi-national corporations pay their fair share".
“Labour will continue to work to get an international agreement that will see a comprehensive regime for multinational corporations to pay their fair share," Robertson said.
"But we also need to be prepared to put in place our own rules to ensure fairness, if that agreement is not possible. We will be prepared to implement a Digital Services Tax."
In May, Prime Minister Jacinda Ardern avoided answering questions by then National Party leader Simon Bridges about if she intended to raise tax brackets to pay for the Covid-19 fallout.
A tax working group in February 2019 suggested the Government adjust the lowest tax bracket so people can keep more of their earnings at that rate.
In the 2017 Budget, the previous National Government planned to increase the bottom three tax brackets. It was reversed by the current Government and reallocated through the families package.
Sixty-six per cent of New Zealanders earn below $50,000 per year and 26 per cent earn betweeen $50,000 and $100,000.
In April last year, Ardern ruled out introducing a Capital Gains Tax while she was Prime Minister after failing to reach consensus with the Greens and NZ First.
Current New Zealand tax rates for personal income:
10.5% on the first $14,000 earned
17.5%: on all income $14,001 to $48,000
30%: on all income between $48,001 to $70,000
33%: on income earned above $70,001