He died peacefully surrounded by his nine children, 18 grandchildren and his wife Joan, his family said in a statement issued on Thursday.
Bolger had kidney failure last year, and had been undergoing treatment ever since.
A former National Party leader, he served as prime minister from 1990 until 1997.
The current National Party leader and Prime Minister, Christopher Luxon, said Bolger “served with integrity and purpose”.
“Jim Bolger was a towering figure in New Zealand’s political life – a leader of conviction, a reformer of consequence, and a servant of the people whose legacy has shaped our nation in profound and lasting ways.”
Bolger leaves behind a legacy that will be respected and studied for generations, the party leader said.
Bolger was first elected to Parliament in 1972.
As prime minister Bolger inherited an economic crisis. His government launched major reforms to tackle double-digit inflation, a large deficit, and significant debt.
New Zealand’s foreign affairs minister, Winston Peters, formed a coalition government with Bolger in 1996 through his New Zealand First party.
“Mr Bolger was a proud New Zealander who served his country as prime minister during a difficult period of serious transition in our politics,” Peters said.
“As the leader of Mr Bolger’s coalition partner, I can attest he was a man of his word. He did what he said he would do – and we ran our Coalition Government with integrity, focus and a fidelity.”
As well as the economic transformation he and his finance minister, Ruth Richardson, led, Bolger is remembered for ushering through the first major Treaty of Waitangi settlement.
Treaty of Waitangi claims are made by Indigenous Maori communities based on historic breaches of an 1840 agreement between the British Crown and the Maori.
Bolger and his government negotiated with Waikato Tainui from 1991 until 1995, before reaching agreement over a NZ$170 million (US$97 million) settlement and a Crown apology.
Later, in his book “A View From The Top”, Bolger reflected on the settlement process.
“Something within me – perhaps it is my Irish heritage, which is that of a nation oppressed for centuries – demanded that I listen to the Maori story, speak with those who wanted to talk about the grievances and determine in due course what could be done.”
During his time as leader, Bolger invited new South African president Nelson Mandela to Wellington in 1995, and he met with Queen Elizabeth II.
The leader of the opposition, Chris Hipkins, also paid tribute to Bolger as a “towering figure” in New Zealand politics.
“His time in office was marked by immense economic and social change,” Labour Party leader Hipkins said.
“Jim had an enduring commitment to public life, his legacy will be long remembered, and his contributions will continue to shape our country for generations to come.”