Capital gains tax and the 2026 election: the parties compared
A neutral comparison of what each party has said about capital gains tax and the bright-line test, with current law first and parties in alphabetical order. Labour’s proposal is modelled on your own sale. None of these proposals is law.
Last checked 10 November 2026Not affiliated with any political partyNothing you type leaves your device
Where things stand
The general election was held on 7 November 2026. These are preliminary results only. Official results are due on 27 November 2026.
No government has been formed and no coalition agreement has been published. The proposals on this page are not law and could change in negotiations.
Under current law, the bright-line test taxes residential property sold within 2 years of title registration, at your marginal rate. Labour proposes a 28% tax on gains made after 1 July 2027 on residential and commercial property, excluding the family home and farms. On our model of Labour’s proposal, a rental bought in 2018 for $750,000, worth $900,000 on 1 July 2027 and sold in 2029 for $1,200,000, would pay $84,000.00; under current law it pays nothing. This is Labour’s own published example.
National, ACT and NZ First have said no to a capital gains tax. The Greens propose a 10-year bright-line test instead, and Opportunity a land value tax. None of these proposals is law.
Labour’s proposal on your sale
Current law first, then Labour’s proposal as we model it. Change the figures to see your own sale.
Your sale under each scenarioProposal, not law
Current law (bright-line test)$0
No tax: sold 2 years or more after you bought (the period ends 1 June 2020), assuming no other land sale rule applies.
Labour’s proposal (NOT LAW)$84,000.00
28% of the gain above the base value of $900,000 (the 1 July 2027 value).
How we worked out Labour’s figure
Base value (the higher of purchase price and 1 July 2027 value)
$900,000 (the 1 July 2027 value)
Sale price
$1,200,000
Gain after 1 July 2027
$300,000
Labour’s proposed tax at 28%
$84,000.00
Labour’s capital gains tax is a campaign proposal. It is not law, and no government has been formed. Details Labour has not published are our assumptions, listed below.
Worked example shown. Change any figure to see your own result (needs JavaScript).
From party material and news coverage reviewed up to 10 November 2026. “None found” means we found no stated policy in the sources reviewed. UNVERIFIED marks a point that rests on a single non-official source.
Current law
Current law
ACT
Green
Labour
National
NZ First
Opportunity
Te Pāti Māori
Capital gains tax
None. Gains are taxed only under specific rules (bright-line, intention, dealers), at marginal rates
Opposes; “no new taxes”
None (uses the bright-line test instead)
28% on residential and commercial property gains made after 1 July 2027
Ruled out (“no new taxes”)
Opposes (history); no 2026 document
None (land value tax instead)
None found
Bright-line test
Sale agreements within 2 years of title registration (since 1 July 2024)
Scrap it (older releases; 2026 status UNVERIFIED); 12-month bright-line exemption for personal digital assets
Restore 10 years
No stated change
No change proposed (the 2-year test is its 2024 change)
None found
None found
None found
Family home
Main home exclusion: more than 50% of land and time
Not applicable
Exempt from the bright-line test and the wealth tax
Exempt
Not applicable
Not applicable
Not exempt from the land value tax (deferral options)
First homes under $1m exempt from stamp duty
Other property taxes
Land sale rules, ss CB 6 to CB 12
None
Reinstate the interest limitation; 2.5% wealth tax over $10m; 33% tax on inheritances and gifts over $1m
None (interest deductibility position disputed)
None
Opposes a wealth tax
Land value tax: 1.75% a year, 0.5% for rural land
Wealth tax from $2m; 5% stamp duty; 33% land banking tax; 2% vacant homes tax
Revenue claim
Not applicable
Not applicable
About $5.35bn to $5.94bn a year (whole package)
About $700m a year on average; $1.35bn a year from 2030 (news report)
Not applicable
Not applicable
Land value tax: $24bn a year (Deloitte)
Not checked
What each party has said
In alphabetical order. Quotes are the parties’ own words where we could read a party source; otherwise we say which report a point comes from.
ACT
Described, not modelled
Taxes: a “no new taxes” campaign pledge (Deloitte, 22 September 2026).
Bright-line: ACT has long called for the test to be scrapped. Its releases quote David Seymour: “A vote for ACT is a vote to eradicate the bright-line test”, calling it “this stealth capital gains tax”. The pages show a 2026 date but appear to date from about 2021, so this is not confirmed as a 2026 commitment (UNVERIFIED).
Crypto: a bright-line test that would make gains on qualifying personal digital assets tax free if held for at least 12 months, and a tax exemption for low-value purchases made with digital assets (ACT policy, 27 August 2026, as reported by Simpson Grierson and interest.co.nz).
On Labour’s capital gains tax, Seymour said: “Fair is fair and people should pay their taxes, but we already pay more than most” (1News, 28 October 2025).
Capital gains tax: none proposed (Deloitte, 13 July 2026).
Bright-line: restore the period to 10 years, with the family home exempt. Profits would be added to income and taxed at marginal rates (1News, 21 June 2026).
Interest deductibility: reinstate the limitation for residential property investors.
Wealth tax: 2.5% a year on net assets above $10 million, family home exempt (Deloitte, 13 July 2026).
Capital Acquisitions Tax: 33% on inheritances and gifts over $1 million, paid by the recipient, with family homes and farms exempt.
Revenue: the Greens estimate net revenue rises of $5.35 billion in 2027/28 and $5.94 billion by 2030/31 for the whole package (1News, 21 June 2026).
We did not find the Green policy document on greens.org.nz; these points come from the reports listed.
Rate: “A 28 percent tax on any profit made after 1 July 2027”, “aligned with the company tax rate”.
Scope: “commercial or residential property (excluding the family home or farm)”, taxed only on sale. KiwiSaver, shares, business assets, inheritances, gifts and personal items are excluded.
Start: “Not a single dollar of profit made before 1 July 2027 will be taxed.” The base is the purchase price or the value on 1 July 2027, “whichever is higher”; the default value is the rateable value, or a registered valuation reflecting 1 July 2027.
Improvements can be added to cost “as long as you haven’t claimed depreciation on that work”. “Small businesses that sell premises to buy a bigger one won’t be taxed.”
Revenue use: “Every dollar raised will be ring-fenced to provide all New Zealanders with better healthcare”, including three free doctor’s visits a year.
Reported but not on Labour’s page: no deduction for rates or mortgage interest and no inflation adjustment (1News, 18 October 2026); losses carried forward only against future property gains (Deloitte, 17 August 2026). UNVERIFIED.
Revenue estimate: an average of $700 million a year, $1.35 billion a year from 2030 (1News, 18 October 2026). Labour has published no statement on whether the bright-line test would stay.
Taxes: “National is committing to no new taxes if re-elected on November 7.”
Christopher Luxon: “We are not introducing a capital gains tax”, and the pledge would be “solidified” in any coalition agreement (RNZ, 23 August 2026).
Nicola Willis argues owner-occupied business premises would be taxed under Labour’s plan, with a dairy example where a $100,000 rise creates a “$28,000” tax bill (National release, 2 September 2026). This is a party claim.
Bright-line: the current 2-year test was introduced by the National-led government from 1 July 2024. We found no 2026 National statement proposing a further change.
We found no 2026 capital gains tax or bright-line policy document. Simpson Grierson lists NZ First’s position as “Position not stated” and records that Winston Peters has expressed opposition to a wealth tax.
On Labour’s capital gains tax, Peters said: “It was an absolute mess of an announcement” (NZ Herald, reported by 1News, 28 October 2025).
NZ First blocked a capital gains tax in the 2017 to 2020 term.
Capital gains tax: none. Its page says: “You still benefit from capital gains, though they’ll be lower as land values adjust.”
Land value tax: “The 1.75% annual tax applies to the value of land only”, “reduced to 0.5% for rural land and deferrals may apply”. Deloitte reports forecast revenue of $24 billion a year.
The bright-line test and interest deductibility are not mentioned on its tax page.
Opportunity’s five bottom lines (29 September 2026) did not include the land value tax (1News).
How we modelled Labour’s proposal, and our assumptions
Labour has published the rate, the start date, the exclusions and the base value rule. Everything else below is our assumption, so the figure is an illustration, not a forecast.
Base value: the higher of your purchase price and the value on 1 July 2027 (Labour’s rule). We use the rateable value you enter as the 1 July 2027 value, Labour’s stated default.
Bought on or after 1 July 2027: the base is your purchase price (our reading of the higher-of rule).
Improvements: only improvements made after 1 July 2027 with no depreciation claimed are added to the base (our assumption; Labour says improvements can be added if no depreciation was claimed).
Purchase and selling costs are not deducted, because Labour has not said and its own examples use sale price less base value only (our assumption).
Holding costs such as rates and mortgage interest are not deducted (reported by 1News, 18 October 2026; not on Labour’s page).
No inflation adjustment (reported by 1News, 18 October 2026).
A loss gives no refund and could only be carried forward against future property gains (reported by Deloitte, 17 August 2026; not on Labour’s page).
A flat 28% on the gain, not your marginal rate.
Labour has not said whether the bright-line test would stay. We show the two side by side and do not combine them.
Owner-occupied business premises: unresolved between Labour and National, so we show the figure “if included” only.
A sale before 1 July 2027 pays nothing under the proposal.
We model the whole property, not a co-owner’s share, and not when or how the tax would be paid.
Current law column: we treat your purchase date as the title registration date and the sale date as the sale agreement date, and use 2026/27 tax rates for later years.
Questions people ask
Is Labour’s capital gains tax law?
No. It is a campaign proposal. The election results are preliminary, official results are due on 27 November 2026, and no government has been formed.
How much would Labour’s capital gains tax be on my property?
On our model, 28% of the gain made after 1 July 2027. For a rental bought for $750,000, worth $900,000 on 1 July 2027 and sold for $1,200,000, that is $84,000.00. Use the calculator above for your own figures.
Would my family home be taxed under Labour’s proposal?
Labour says the family home is exempt, including lifestyle blocks. 1News reports it would use the existing bright-line main home test.
What happens to the bright-line test?
Labour has not said. The Greens would restore a 10-year period. ACT has called for it to be scrapped in older releases. National’s 2-year test is current law.
