Subduction of the Pacific plate in the northern South Island and southernmost North Island of New Zealand is transitional, insofar as the crustal thickness of the Pacific plate increases significantly along strike in the northern South Island. Focal mechanisms of 145 events shallower than 100 km in this region have been determined using both first motion polarity data and amplitudes of seismogram envelopes. The stress regime in the subducted plate appears to be dominated by slab pull. T axes in both the upper and lower planes of the dipping seismic zone generally parallel the local dip of the zone, and the average azimuth of these T axes is rotated some 25° clockwise out of the direction of dip of the subducted plate. This can be related to the asymmetrical shape of the subducted slab. In contrast, the stress regime in the overlying plate appears to be dominated by subhorizontal compression. Low‐angle thrust events near the plate interface in Cook Strait and the southernmost North Island concentrate in two areas which may mark the updip and downdip edges of a locked region identified from Global Positioning System (GPS) observations. An absence of low‐angle thrust events near the plate interface in the northern South Island and the tendency of P axes of events in the subducted plate to become more horizontal suggest that plate coupling there is stronger than in the southernmost North Island. Differential coupling at the plate interface provides a viable mechanism for producing the large tectonic rotations seen in the northern South Island.