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's bright-line test currently acts as a limited capital gains tax (CGT). The Labour Party has proposed a broader CGT if elected in 2026, starting 1 July 2027.
This would apply a 28% tax on gains from commercial and residential investment properties, though the family home would be exempt.
While supporters say it improves tax fairness, critics cite increased compliance costs. Property owners should monitor the election outcome before making any 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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