Bright-line Test Calculator NZ
Tax owed on a property sold within the bright-line period.
NZ$
NZ$
NZ$
NZ$
%
Outside bright-line period
No bright-line tax
Held 885 days · gain $115,000
| Days held | 885 |
|---|---|
| Gain | $115,000 |
| Bright-line tax | $0 |
Current period: 2 years (since 1 July 2024). Main-home and inheritance exceptions may apply — see IRD guidance.
About this calculator
The bright-line test taxes the gain on a residential property sold within the bright-line period. The current period is 2 years for sales from 1 July 2024 onwards (down from 5 then 10 years).
- Gain = sale price − purchase price − capital improvements − costs of sale.
- Taxed at your marginal income tax rate (33% or 39% for most investors).
- Main-home exception applies if the property was your main home for the whole bright-line period.
- Inherited and Family Trust transfers have specific rules — see IRD's bright-line guidance.
Frequently asked questions
What dates were the longer periods in force?
Properties bought 1 Oct 2015 – 28 Mar 2018: 2-year period applies. 29 Mar 2018 – 26 Mar 2021: 5-year period. 27 Mar 2021 – 30 Jun 2024 (residential): 10-year period (5y for new builds). 1 Jul 2024 onwards: 2 years for all.
Related calculators
Calculator NZ provides general information only. For decisions with significant financial, medical or legal consequence please consult a qualified professional.