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NZ Capital Gains Tax: Labour's Plan and What's Already Law
Watch out – the rules could change in 2027
AI summary
New Zealand's Capital Gains Tax (CGT) is a key topic for the 2026 election. Currently, the bright-line test functions as a quasi-CGT, taxing gains on investment properties sold within two years.
The Labour Party proposes a new CGT starting 1 July 2027. It would:
- Apply a 28% tax on gains from commercial and residential investment properties.
- Exempt the family home, farms, and KiwiSaver.
This change would require a property valuation on the start date. Owners should await the election outcome before making decisions.
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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