Real Estate · New Zealand

New Zealand’s Capital Gains Tax Proposals at the 2026 Election

New Zealand has no general capital gains tax. Whether it gets one is a live question at this election: Labour is campaigning on a tax on gains from investment and commercial property, while National, ACT and others oppose new taxes. This page describes each position from the party’s own published policy, then shows what the main proposal would mean in numbers next to the rule that applies today.

What applies today: the bright-line test

The closest thing New Zealand has to a capital gains tax on property is the bright-line test, run by Inland Revenue. For residential property sold on or after 1 July 2024:

• the profit is taxable if the sale falls within 2 years of when you bought it;
• the period usually starts when the title is transferred to you and ends when you sign a binding sale and purchase agreement;
• it generally does not apply to the sale of your main home, if your use of it meets Inland Revenue’s criteria.

Before 1 July 2024 the period was longer (5 or 10 years, depending on when the property was bought). Property held for more than 2 years and sold now falls outside the bright-line test.

What each party proposes

Read on each party’s own website on 3 November 2026; links are in the sources below. We list parties represented in Parliament plus The Opportunity Party, whose land tax is the other property-tax proposal on offer.

Labour’s proposal in detail

What would be taxed

Profit from selling commercial property and residential investment property, such as rentals and holiday homes that are not the family home. The rate is 28%, the same as the company tax rate. Only gains after 1 July 2027 count, and only when the property is sold.

What would be exempt

• the family home, including lifestyle blocks;
• farms;
• inheritances and gifts;
• KiwiSaver, shares and businesses;
• personal items.

Labour also says a small business selling its premises to buy bigger ones would not pay.

How the gain would be worked out

The starting value is the higher of what you paid and the property’s value on 1 July 2027. By default that value is the rateable value; an owner who thinks it is too low can get a registered valuation of the 1 July 2027 value, as long as it is done before the sale. Improvement costs can be added to the cost if no depreciation was claimed on them.

Who would pay

People who sell a rental, holiday home or commercial property at a gain after 1 July 2027. Labour says nine in ten New Zealanders would not pay any tax on the property they own. Labour has not published a revenue estimate on its capital gains tax page.

A worked example

Aroha bought a rental flat for $750,000 in March 2021. Assume its rateable value on 1 July 2027 is $820,000, and she sells it in 2031 for $950,000. Selling costs and improvements are left out to keep the figures plain.

The $70,000 rise before 1 July 2027 is not taxed under Labour’s design; only the $130,000 after it is. Had Aroha lived in the flat as her family home, both columns would be $0.

Now the bright-line test as it stands. Ben buys a rental with title transferring in January 2026 for $700,000 and signs an agreement to sell it in October 2027 for $760,000. That is within 2 years, so the $60,000 profit (less allowable costs) is taxable today, whoever wins the election.

What to watch after 7 November

• The result and coalition talks. A tax policy only becomes law if the governing parties agree to it and pass legislation. Coalition agreements can drop or change campaign policies.
• The detail. If a capital gains tax goes ahead, the rules on valuation, losses and timing would be set in legislation, which may differ from the campaign summary.
• The bright-line test. It stays at 2 years unless a new government changes it; the Greens propose reversing the 2024 changes.

Related

• KiwiSaver calculator: your balance at 65 under the 3.5% rules, with ESCT, PIR tax and the government contribution. KiwiSaver is outside every capital gains tax proposal above.
• Rent vs buy calculator

Sources

• Inland Revenue: The bright-line test (updated 1 April 2026) and start and end dates
• Labour: Capital gains tax and Labour’s 2026 policies
• National: No new taxes
• Green Party: A tax system for all of us (announced 21 June 2026)
• ACT: Top ten reasons to oppose a capital gains tax
• NZ First: Policy
• Te Pāti Māori: Tax
• The Opportunity Party: Tax reset

Party policies and Inland Revenue rules read on the linked pages on 3 November 2026. The worked example uses assumed figures. Neutral summary, not a recommendation of any party; general information, not tax advice.

Frequently asked questions

Does New Zealand have a capital gains tax?
Not a general one. The main tax on property gains today is the bright-line test: if you sell residential property within 2 years of the title transferring to you, the profit is taxable unless an exclusion such as the main home applies. That 2-year period applies to sales from 1 July 2024.

What capital gains tax is Labour proposing?
Labour proposes a 28% tax on the profit from selling residential investment property and commercial property, on gains made after 1 July 2027 only. It says the family home (including lifestyle blocks), farms, inheritances, KiwiSaver, shares, businesses and personal items are excluded, and that the money raised would go to health.

Would a capital gains tax apply to my family home?
Not under any proposal published by the parties before the 7 November 2026 election. Labour excludes the family home from its capital gains tax, and the Greens exempt family homes from their proposed wealth tax.

Which parties oppose a capital gains tax?
National has committed to no new taxes if re-elected, and ACT says New Zealand does not need a capital gains tax. NZ First’s website set out no capital gains tax when we read it on 3 November 2026.