NZ Bright-line Property Tax Calculator
Check if your property sale is subject to the bright-line test and calculate the estimated tax on any gain.
About the Bright-line Test
The bright-line test taxes gains from selling residential property within a certain period. The period depends on when you purchased the property:
- Before 1 Oct 2015: Not applicable
- 1 Oct 2015 – 28 Mar 2018: 2-year bright-line period
- 29 Mar 2018 – 26 Mar 2021: 5-year period
- 27 Mar 2021 – 30 Jun 2024: 10-year period
- 1 Jul 2024 onwards: 2-year period (reduced)
If you sell within the applicable period, any profit is taxed as income at your marginal tax rate. Your main home is exempt from the bright-line test.
Frequently asked questions
What is the bright-line test?
The bright-line test is a rule that taxes profits from selling residential property if sold within a set period after purchase. The period varies from 2 to 10 years depending on when you purchased the property.
Is my main home exempt?
Yes. Your main home (the property you primarily live in) is generally exempt from the bright-line test. However, specific conditions apply — you must have used it predominantly as your main home throughout ownership.
What changed on 1 July 2024?
The bright-line period was reduced from 10 years to 2 years for properties purchased on or after 1 July 2024. Properties purchased before this date retain their original bright-line period.
How is the gain calculated?
Taxable gain = sale price minus purchase price minus allowable costs (legal fees, agent commission, inspection costs). The gain is added to your other income and taxed at your marginal rate.
Sources
Bright-line test rules from IRD — Bright-line Property Rule.
Related Calculators
Last updated March 2026. Rates sourced from IRD.