Brightline Test Calculator

The brightline test is an NZ tax rule that makes profit from selling residential property taxable if you sell within the brightline period. The period depends on when you purchased the property — currently 2 years for properties bought from 1 July 2024.

For properties purchased from 1 July 2024 onwards, the brightline period is 2 years. Properties bought between 27 March 2021 and 30 June 2024 have a 10-year period (5 years for new builds). Properties bought between 29 March 2018 and 26 March 2021 have a 5-year period.

The main exemptions are: the main home exemption (you lived there for more than 50% of ownership), inherited property, relationship property settlements, and transfers to or from a trust where you are a beneficiary.

If the brightline test applies, your gain (sale price minus purchase price minus eligible costs) is added to your taxable income and taxed at your marginal income tax rate. NZ income tax rates range from 10.5% to 39%.

Yes, for properties purchased between 27 March 2021 and 30 June 2024, new builds had a reduced brightline period of 5 years compared to 10 years for standard residential property. From 1 July 2024, both new builds and standard properties have a 2-year period.