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Capital gains tax in New Zealand 2026
New Zealand still has no capital gains tax: shares, funds, businesses and long-held property sell with 0% tax on the profit.
The bright-line rule is the carve-out — residential property (not your main home or inherited property) sold within 2 years of purchase is taxed at your marginal rates, as is any land bought with resale intent.
At a glance
- top rate
- 0% generally; marginal rates (to 39%) inside the bright-line window
- entry band
- 0%
- tax year basis
- 1 April – 31 March
- filing deadline
- Taxable property gains go in the annual return
- residency basis
- Residence irrelevant to the 0%; offshore sellers face a land withholding
- regime flag
- Bright-line test: 2 years for sales from 1 July 2024
Rates
Capital gains treatment (2026/27)
| Rate | Base | Applies to |
|---|---|---|
| 0% | — | Shares, funds, businesses and other assets held as investments |
| 10.5% – 39% scale | Gain | Residential property sold within 2 years of purchase (main home and inherited property excluded) |
| 10.5% – 39% scale | Gain | Any land acquired with the purpose of disposal, and dealer/developer sales |
| Withholding applies | Sale | Offshore sellers within the bright-line window — residential land withholding tax, non-final |
Thresholds & allowances
- Main homeExcluded
The family home sits outside the bright-line test
- Emergency buy-outsExempt
From April 2025, gains from emergency-event and government buy-outs of land are not income
- Capital lossesNot claimable
No capital gains tax means no capital loss deductions either
Residency
Residency trigger
The purpose at acquisition decides: buy to sell and the profit is income whenever realized; buy to hold and the gain stays untaxed.
Non-resident treatment
Non-residents' capital gains are outside New Zealand tax entirely; bright-line residential sales by offshore persons carry the residential land withholding, credited against any final bill.
Notes
- The bright-line window was 10 years as recently as mid-2024 — the cut to 2 years transformed property exit planning.
- Residential rental interest is fully deductible again from April 2025.
- Land dealers, developers and builders have their own taxing rules regardless of holding period.
- Foreign shares can fall under the separate foreign investment fund regime, which taxes deemed returns rather than gains.
FAQ
Does New Zealand have capital gains tax?
No — 0% on shares and most assets; only land bought for resale and residential property sold within 2 years of purchase are taxed, at marginal rates up to 39%.
How does the bright-line test work?
Sell residential property (other than your main home or an inheritance) within 2 years of buying and the profit is taxable income; offshore sellers also face a withholding at settlement.
Figures: tax year 2026/27 (April–March), compiled from public sources. Not tax advice.