Capital gains tax in New Zealand: key facts
The numbers people ask about, one fact per line, each with its source. Current law first; Labour’s proposal is marked as not law.
Rules checked 10 November 2026.
New Zealand has no general capital gains tax. Taxed property gains are added to income and taxed at the person’s marginal rate; there is no separate rate.
Source: IR1227 p32; IRD bright-line rule page (1 April 2026)
For sale agreements on or after 1 July 2024, the bright-line test taxes residential property sold within 2 years of the bright-line start date, whenever it was bought.
Source: IR1229 p6 (March 2026)
The switch to 2 years depends on the sale agreement date, not the purchase date: a rental with a start date of 5 January 2022 sold on 27 July 2024 is not taxable.
Source: IR1229 p7 (Mia example)
For sale agreements before 1 July 2024 the period was 2 years (acquired 1 October 2015 to 28 March 2018), 5 years (29 March 2018 to 26 March 2021, or a qualifying new build acquired later) or 10 years (other property acquired on or after 27 March 2021).
Source: IR1227 p6
The bright-line period starts when the title is registered to you (usually settlement) and ends on the date of a binding sale agreement, even if conditions remain.
Source: IR1229 p7
The settlement date usually decides the income year a bright-line sale is returned in.
Source: IR1229 p46
The main home exclusion needs more than 50% of the land used as your main home for more than 50% of the bright-line period. Under the current rules it is all or nothing.
Source: IR1229 pp15 to 16
The main home exclusion is not available with a regular pattern of buying or building and selling, or if it was already used twice in the 2 years before the sale.
Source: IR1229 pp19 to 20
When building a new home, the construction period is ignored for the main home test.
Source: IR1229 p22
A beneficiary’s sale of inherited property is not taxed under the bright-line test.
Source: IR1229 p27
From 1 July 2024, transfers between associated persons can get rollover relief if they were associated for at least 2 years, once in any 2-year period.
Source: IR1229 p30
A bright-line loss cannot be offset against salary, wages, rental or business income; it only offsets bright-line or other taxable land sale income.
Source: IR1229 p46
For a property not earning income, holding costs are deductible only from the sale agreement to settlement.
Source: IR1229 pp42 to 44
Land bought with a firm intention of selling is taxed on sale with no time limit. IRD calls the idea that 10 years makes it tax free a common misconception.
Source: QB 25/08 para 28 (9 May 2025)
Individual income tax rates from 1 April 2025: 10.5% to $15,600, 17.5% to $53,500, 30% to $78,100, 33% to $180,000 and 39% above.
Share gains are taxable only if the shares were bought for the dominant purpose of selling them, in a share dealing business or a profit-making scheme. FIF rules may apply if foreign shares cost more than NZ$50,000 in total.
In most cases, amounts from selling, trading or exchanging cryptoassets are taxable.
Not law: Labour proposes a 28% tax on gains made after 1 July 2027 on residential and commercial property, excluding the family home and farms. The election results are preliminary and no government has been formed.
Source: Labour, Capital Gains Tax (accessed 10 November 2026)
You may quote these facts with a link to this page. Current law as at the date shown; proposals are not law.