NZ Bright-Line Tax Calculator 2025

Estimate Bright-Line property tax on a NZ residential property sale. Reflects the 2-year Bright-Line period restored from 1 July 2024.

Purchase Date

Sale (or Intended Sale) Date

Purchase Price (NZD)

Expected Sale Price (NZD)

Selling Costs (agent, legal, NZD)

Your Marginal Income Tax Rate (%)

Property Type

How the NZ Bright-Line Test Works in 2025

The Bright-Line test is New Zealand's property tax rule that taxes gains on residential property sold within a certain number of years of purchase. The National-led government reduced the Bright-Line period from 10 years back to 2 years, effective 1 July 2024. This means properties purchased on or after 1 July 2024 are only subject to the Bright-Line test if sold within 2 years.

For properties purchased before 1 July 2024, transitional rules apply: the 5-year or 10-year period that applied at purchase still governs those sales.

Who Is Exempt From the Bright-Line Test?

Several property types are excluded from the Bright-Line test regardless of the holding period:

Main home — your primary residence is generally exempt, subject to the "main home exclusion" rules. Mixed-use or properties frequently sold may lose this exemption.
Inherited property — property received through a deceased estate is exempt.
Relationship property settlements — transfers under the Property (Relationships) Act are excluded.

The tax is calculated on the profit (sale price minus purchase price and deductible selling costs), and added to your income for that tax year at your marginal rate.

Bright-Line Tax Rates and How It's Calculated

Unlike Australia's CGT with a 50% discount, New Zealand's Bright-Line tax has no discount for long holding periods. The full gain is added to your income and taxed at your marginal rate. For someone earning $80,000 who sells with a $150,000 Bright-Line gain, the gain would be split: part taxed at 30% and the remainder at 33% (where it crosses the $70,001 threshold).

Interest deductibility on residential rental properties (phased back in from 2024–25) also interacts with the Bright-Line calculation — deducted interest claimed during the holding period may need to be added back in some cases.