NZ Bright-Line Property Tax Calculator

How it works

Bright-line applies if sale agreement < 2 years after purchase title transfer (for sales from 1 July 2024). Tax = marginal income tax on (sale proceeds − cost − improvements)

The bright-line test treats the profit on a residential property sold within a set period as ordinary income. From 1 July 2024 the period is two years for all properties, regardless of when they were bought (it was ten or five years before). The clock generally starts on the date title transfers to you and stops on the date you sign the sale agreement. Your main home is excluded if you lived in it for more than half the ownership period, and inherited property or relationship-property transfers are also outside the test. Losses are ring-fenced and can only offset future taxable property gains.

Worked example

Bought October 2025 for $780,000 all-in, sold for $860,000 net after about a year with $90,000 other income: the $80,000 gain is taxed at 33% on most of it — about $26,400.

Frequently asked questions