It was New Zealand's equal-highest victory by runs and a complete reversal from the first two Tests, which England won easily to clinch the three-match series.
The hosts sealed a dominant performance in Hamilton by claiming seven wickets in 41.2 overs on day four as England crumbled for 234.
Playing on his home ground at Seddon Park, seamer Southee finished with 2-34 in his 107th and final Test, ending the career of one of New Zealand's finest players.
He finishes with 391 Test wickets, second only to Richard Hadlee among New Zealanders.
"I want to thank New Zealand Cricket for everything you have done. My family, who are there for the ride and see the ups and downs," said the 36-year-old.
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