Buying guide
NZ Capital Gains Tax: Labour's Plan and What's Already Law
Watch out – the rules could change in 2027
AI summary
The Labour Party has proposed a Capital Gains Tax (CGT) for New Zealand, which would take effect from 1 July 2027 if they are elected.
The proposed 28% tax would apply to profits from selling investment and commercial properties. Importantly, the family home, farms, inheritances, and shares would be exempt. This differs from the current bright-line test, which already taxes gains on properties sold within two years. Property owners should monitor developments and seek professional advice if the law changes.
In this article you’ll learn:
What is a capital gains tax?
Does NZ already have a capital gains tax?
What happens in here (and in voting booths) will ultimately decide whether or not we end up with a more broad CGT.
A closer look at Labour’s capital gains tax proposal
The case for a capital gains tax in NZ
The family home is exempt from Labour's proposal.
The case against a capital gains tax in NZ
Against a capital gains tax generally
Against the details of Labour’s plan
I own a property, what should I do now?
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