NZ Bright Line Test Extension 2026 Calculator
Effective 1 July 2024, the NZ Bright-Line Test was shortened from 10 years to 2 years for residential property. If you sell within 2 years of acquisition, the gain is taxable as ordinary income. Calculate your bright-line tax exposure.
Bright-Line Test Mechanics
The bright-line test taxes property sale gains as ordinary income (your marginal rate) if sold within the bright-line period. Effective 1 July 2024, the period is 2 years for residential property (previously 10 years for properties purchased Mar 2021-Jun 2024, or 5 years for earlier purchases).
Family Home Exemption
Your main home is exempt from the bright-line test if you've used it as your main home for most of the period you owned it. Mixed-use (rented part of the year) may lose partial exemption. Multiple homes — only one can qualify as your main home at a time.
Acquisition Date Matters
Properties purchased pre-March 2018: no bright-line test. March 2018 - March 2021: 5-year rule. March 2021 - June 2024: 10-year rule. After July 1, 2024: 2-year rule. Verify your purchase date carefully — bright-line period is locked at acquisition.
Source: IRD.govt.nz Bright-Line Property Rule, Taxation Act 2007 sections CB 6A-6E, Taxation (Annual Rates 2024-25) Act. Last updated: May 2026.