Adults' rate of smoking has declined to 15 per cent in the latest census, down from 20.7 per cent in 2006.
Census 2013 counted 463,000 adults who smoked one or more cigarettes a day, compared with 598,000 at the previous census.
The data does not include people who smoked tobacco in cigars, pipes or cigarillos.
The Ministry of Health's 2011/12 survey of people 15 and older found a daily smoking rate of 16.5 per cent. That survey defined smoking to include all tobacco products.
The Government's official target is that New Zealand will be substantially "smokefree'' by 2025, which is generally understood to mean a prevalence of less than 5 per cent. The mid-term target is 10 per cent by 2018.
Action on Smoking and Health (ASH) communications manager Michael Colhoun welcomed the ongoing reduction in the prevalence of smoking.