Buying guide
Interest deductibility on rental property explained
The laws are changing so we’ve got up to date answers to make life easier.
AI summary
The New Zealand government is reintroducing interest deductibility for rental properties, allowing landlords to again deduct mortgage interest costs from their rental income.
The new rules are being phased in:
- 2023/24 tax year: 60% deductible
- 2024/25 tax year: 80% deductible
- 2025/26 tax year: 100% deductible
Additionally, the bright-line test has been shortened to two years. Landlords should stay informed and consult a tax accountant to navigate these changes and ensure they are compliant.
But first, what is interest deductibility on rental property?
Current rules — what's deductible now?
There are tax advantages to owning a new build property.
Other changes for investors to note
Should I be doing anything now?
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