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 NZ government is reintroducing interest deductibility for rental property mortgage costs, reversing the previous phase-out policy. This change is being phased in to support landlords.
The new deduction schedule is:
- 60% for the 2023/24 tax year
- 80% for the 2024/25 tax year
- 100% from 2025/26 onwards
Additionally, the bright-line test has been shortened to two years. Property investors should consult a tax accountant to navigate these updates and ensure they remain 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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