From 2 May, the price of an adult passport will go up by around $30 from $215 to $247 (incl. GST).
For a child's passport, the price will increase by around $20, from $125 to $144 (incl. GST).
The Department of Internal Affairs said the costs were linked to increased wages, technology, insurance and the materials to make the passports.
DIA's acting deputy secretary of regulatory and identity service Briget Ridden said New Zealand operated a user-pays system.
"As the cost of delivering this service has increased, we need to adjust the application fee," Ridden said.
Ridden said the department was conscious of putting up fees "only where necessary" and it was taking steps to "increase efficiency and minimise costs".
"This includes better use of technology and scaling back on non-essential system upgrades."
Money collected by charging for passports went directly to the "delivery of passport services" and maintaining the passport's "reputation globally."
New Zealanders are able to travel visa-free or with with a visa on arrival to more than 185 countries.
