Does New Zealand Have Inheritance Tax?
No. New Zealand has no inheritance tax, no estate tax, and no gift tax. Here's what you need to know about how inherited assets are treated.
No inheritance or estate tax in NZ
New Zealand abolished estate duty in 1992 and gift duty in 2011. Receiving an inheritance — whether cash, property, or investments — does not trigger any tax in New Zealand.
What Was Abolished
| Tax | Status | Abolished |
|---|---|---|
| Estate Duty | Abolished | 1992 |
| Gift Duty | Abolished | 1 October 2011 |
| Capital Gains Tax | No formal CGT | Never introduced |
When Inherited Assets Can Be Taxed
While the inheritance itself is tax-free, ongoing income from inherited assets is taxable:
- Rental income: If you inherit a rental property, the rental income is taxable from the date you take ownership.
- Interest & dividends: Income earned by inherited cash or shares is taxable at your marginal rate.
- Foreign shares over $50k: Inherited overseas shares may trigger FIF rules if total cost exceeds $50,000.
- Trust distributions: If assets were held in a trust, distributions to beneficiaries follow trust taxation rules.
NZ Trusts and Estate Planning
Despite no inheritance tax, trusts remain widely used in NZ for asset protection and estate planning. Trustee income is taxed at 39% (since the 2024-25 year). Beneficiary income distributed to beneficiaries is taxed at the beneficiary's personal rate.
Calculate trust tax →Frequently asked questions
Does New Zealand have an inheritance tax?
No. New Zealand abolished its estate duty (inheritance tax) in 1992. There is no tax on assets received through inheritance.
Is there a gift tax in NZ?
No. Gift duty was abolished on 1 October 2011. You can give any amount to anyone without incurring gift tax in New Zealand.
Do I pay tax on money inherited from overseas?
No tax on the inheritance itself. However, if the inherited assets generate income (rent, interest, dividends), that income is taxable in NZ. Foreign investment fund (FIF) rules may apply to inherited overseas shares worth over $50,000.
Is inherited property subject to the bright-line test?
Inherited property is generally exempt from the bright-line test. However, if you subsequently sell property originally acquired by the deceased within the bright-line period, specific rules may apply. Consult IRD or a tax adviser.
Are NZ trusts still taxed?
Yes. While there is no inheritance tax, trust income is taxed at 39% on trustee income. Distributions to beneficiaries are generally not taxed again if trustee income tax has already been paid. Trusts are a common estate planning tool in NZ.
What about the deemed disposal rule for emigrants?
If someone emigrates from NZ, there is no exit tax on most assets. However, shares in foreign companies and FIF interests may trigger deemed disposal rules.
Related Tools
Sources: Inland Revenue, NZ Legislation. Last updated March 2026.