Buying guide
Brightline test explained
Everything you need to know about New Zealand’s capital gains tax
AI summary
New Zealand's brightline test taxes profits from selling residential property within a two-year period. As of July 1, 2024, this rule applies to all properties, with the profit taxed at your marginal income tax rate.
The main family home is generally exempt, though exceptions apply if you have a pattern of buying and selling. Other key exemptions include:
- Inherited property
- Relationship property settlements
Tax is paid on the net profit after deducting expenses. Always consult a tax accountant for advice.
What is the brightline test?
Why the NZ brightline tax was introduced
The family home is usually not covered by the brightline, unless it's been rented out.
Exceptions to the brightline test
Your main home
Inherited real estate
Relationship property
Your capital gains may be taxed if:
You’re in a pattern of buying and selling property for profit
You’re a builder or property developer
You’ve rented out your main home
The bigger the gain, the higher the tax.
You’ve sold the property to an entity
How to work out how much you’ll be taxed
Get expert advice from a tax accountant
Author
Discover More
'I fell in love with it immediately': The clifftop home he wasn't going to lose twice
A beloved Torbay clifftop home with sweeping Hauraki Gulf views is back on the market after seven years.
‘Completely irrelevant': The one number a top agent wishes you'd stop obsessing over
Ray White’s Dean Tuffley gives us the no-nonsense advice Kiwi buyers and sellers actually need.
Search
Other articles you might like
