Capital Gains Tax (CGT) Calculator
Estimate the impact of the proposed NZ CGT (28% from July 2027 if Labour wins). Covers investment property, shares, and business assets. Educational only.
About this calculator
This calculator implements proposed CGT rules (not yet enacted) from NZ Government policy proposal. Last consulted 15 March 2026. Verify the figures yourself by following the link.
Proposed NZ CGT rates (not yet law)
Labour policy — if elected, effective 1 July 2027- •Proposed CGT rate: 28%
- •Family home: Exempt
- •Gains accrued pre-1 Jul 2027: Not taxed (valuation day)
- •Investment property: Subject to CGT after 1 Jul 2027
- •Current bright-line: 2 years (sales from 1 Jul 2024)
- •Status: Proposed — not law as of 2026
Source: IRD — Bright-line property rule
Disclaimer
This calculator provides estimates for general information purposes only. Results should not be relied upon as professional financial, tax, or legal advice. Tax rates and thresholds are based on publicly available IRD data and may change. Always consult a qualified tax agent or financial adviser for advice specific to your circumstances.
How the proposed NZ Capital Gains Tax would work
Labour's proposed CGT (28% from 1 July 2027, if elected) would tax gains on investment property and business assets sold after that date. Family home exempt. Gains earned before July 2027 use valuation day rules.
- 1
Calculate the total capital gain
Gain = sale_price − purchase_price − allowable_costs (legal, agent, improvements)
Costs include conveyancing, agent fees, building improvements (not maintenance/repairs).
- 2
Apportion gain by holding period
Taxable_gain = total_gain × (days_owned_after_1Jul2027 ÷ total_days_owned)
Only the portion of gain accrued AFTER 1 July 2027 would be taxed.
- 3
Apply 28% CGT rate
CGT = taxable_gain × 28%
Flat rate — does NOT stack on marginal income tax. Family home exempt regardless of value.
Worked example
Inputs: Bought rental $500k Jan 2020, sold $800k Jan 2030
Result: Total gain = $300k. Days after 1 Jul 2027 = ~30%. Taxable = $90k × 28% = $25,200 CGT.
Frequently Asked Questions
Does New Zealand have a capital gains tax in 2026?
What would Labour’s proposed 28% CGT cover?
How is the bright-line test different from CGT?
New Zealand currently has no comprehensive Capital Gains Tax (CGT). However, the Labour Party has proposed introducing a 28% CGT on profits from selling investment property and certain other assets, taking effect from 1 July 2027 if Labour wins the 2026 election. This calculator estimates what your tax bill would look like under that proposed regime. It is educational — not yet law.
How this calculator works
Enter the asset purchase price, sale price, and date acquired. The calculator works out the gain (sale - purchase - allowable costs), then applies the proposed 28% rate to the portion of the gain attributable to the period after 1 July 2027 (the proposed start date). The family home is excluded under the current proposal.
Proposed NZ CGT (Labour 2026 policy)
| Rate | 28% (flat) |
| Start date | 1 July 2027 (proposed) |
| Family home | Excluded |
| Investment property | Included |
| Business assets on sale | Included |
| Shares held personally | Included (not yet confirmed) |
This is a proposed policy only — it is not law as of April 2026. Always check the latest IRD guidance.
Worked Examples
Investment property bought 2020 for $500k, sold July 2030 for $800k
Approx CGT: $24,000 (28% of gain attributable to post-2027 period)
- Total gain: $800,000 - $500,000 = $300,000
- Years held post-1 July 2027: 3 of 10 years total = 30% of gain
- Taxable gain: $300,000 × 30% = $90,000
- CGT: $90,000 × 28% = $25,200
- Note: bright-line test may also apply if held under 2 years (separate rules).
Built and maintained by Konstantin Iakovlev. Data sourced from the IRD and official New Zealand government sources.
Last reviewed: