Buying guide
NZ Capital Gains Tax: Labour's Plan and What's Already Law
Watch out – the rules could change in 2027
AI summary
A Capital Gains Tax (CGT) is a key topic for property owners. New Zealand already has a quasi-CGT called the bright-line test, which taxes gains on residential properties sold within a set timeframe.
The Labour Party has proposed a new CGT if elected in 2026, starting 1 July 2027. It would feature:
- A 28% tax on gains from investment and commercial properties.
- Exemptions for the family home, farms, and KiwiSaver.
Owners would need a valuation on the start date. Property owners are advised to 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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