Buying guide
NZ Capital Gains Tax: Labour's Plan and What's Already Law
Watch out – the rules could change in 2027
AI summary
New Zealand has a 'quasi-capital gains tax' via the bright-line test, which applies to recently sold residential properties.
The Labour Party has proposed a new capital gains tax, starting 1 July 2027, if elected. It would apply a 28% tax on gains from selling commercial and residential investment properties. Key exemptions include the family home, farms, and KiwiSaver. Property owners are advised to await the election outcome before making decisions 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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