Capital Gains Tax in NZ: What Exists, What Doesn't (2026)

New Zealand famously has "no capital gains tax" — but that's a half-truth. Several CGT-style rules apply depending on what you own and how you behaved.

Here's what actually gets taxed as of 2026.

1. Property: the bright-line test

If you buy a residential property and sell within 2 years (5 years for new builds purchased before March 2024, 10 years for older purchases), the gain is taxable as income at your marginal rate.

• Your main home is exempt (with conditions — must be your main residence for most of the ownership period).
• Inherited property is exempt if sold within a reasonable timeframe.
• Investment property: Taxable. The gain is added to your IR3 income for the year.

In 2026, the bright-line is 2 years for most purchases — much shorter than the 10-year window that existed pre-2024.

2. Trader status (on anything)

If IRD decides you're a "trader" — buying and selling with the intention of making a profit — your gains are taxable income. This applies to:

• Property flippers.
• Share traders who buy/sell frequently.
• Crypto traders (any frequent buying and selling).

The test is "intent at the time of purchase." If you bought a house to fix and flip, the gain is taxable even if it took 5 years. If you bought to live in it, generally not.

IRD doesn't publish a number of trades that triggers trader status — they look at pattern. Trading every few weeks for a year → almost certainly a trader. Holding for 5+ years → almost certainly not.

3. Overseas shares: FIF rules

If you own more than NZ$50,000 in overseas (non-Australian) shares — Tesla, Apple, Vanguard ETFs, etc — you fall under the Foreign Investment Fund (FIF) regime.

The default method is Fair Dividend Rate (FDR): you're taxed each year on a deemed 5% return on the value of your holdings, regardless of actual gains. So $100k of overseas shares → $5k deemed income → ~$1,650 tax at 33%.

Australian-listed shares are exempt from FIF.

Below $50k, you're taxed only on actual dividends, not unrealised gains.

4. KiwiSaver and PIE funds

PIE funds (most KiwiSaver providers, Sharesies, InvestNow's NZ funds) are taxed at your Prescribed Investor Rate (PIR) — 10.5%, 17.5%, or 28% depending on your income.

The tax is on the fund's gains plus dividends, and it's withheld inside the fund. You never see a tax bill, but the returns you see are post-tax.

Important: check your PIR each year. Wrong PIR (usually too low) = a bill in your IR3.

5. Crypto

Crypto held as an investment is taxed at sale if IRD considers you a trader (see point 2). Crypto held as personal use (paying for things) and sold within reasonable time is generally not taxed.

In practice, IRD treats most crypto activity as trading — every swap between coins is a taxable event. Track every transaction.

6. What's NOT taxed

• Sale of your main home (most cases).
• Long-held shares (>5 years, infrequent trading, no clear profit intent).
• Inheritances.
• Gifts.
• Lottery / Lotto wins.
• Capital from selling a small business below specific thresholds.

The 2026 political picture

A formal CGT is back on the political agenda but as of June 2026, no legislation has been introduced. Watch the 2026 Budget for signals.

Where Steady fits

Connecting your Sharesies, InvestNow or KiwiSaver via Akahu open banking lets Steady track the value of your investments alongside your bank balances — useful when working out if you've crossed the FIF $50k threshold.

Disclaimer: General education. Tax is specific to your situation; talk to a chartered accountant for anything material.