Skip to main content

2023 Income tax assessments | From now until the end of July we’re issuing income tax assessments. Most people will receive theirs by 10 June. Timelines at the end of the tax year.

Inland Revenue Inland Revenue
  • About us
    • About us
    • IR careers
  • News
    • Media releases
    • Updates
    • Subscribe
    • Seminars
  • Related Websites
    • Tax Technical
    • Tax Policy
    • International
  • Contact us
    • Contact us
    • Media queries
    • Tax Technical queries
    • Tax Policy queries
  • English
Register myIR login
myIR login
Individuals and families Ngā tāngata me ngā whānau
  • IRD numbers Ngā tau IRD
  • Income tax for individuals Te tāke moni whiwhi mō ngā tāngata takitahi
  • File my individual tax return Te tuku i tētahi puka tāke takitahi
  • Support for families Ngā tautoko i ngā whānau
  • KiwiSaver Poua he Oranga
  • Student loans Student loans
  • Self-employed Mahi ā-kiri
  • More... Tāpiri atu…
Business and organisations Ngā pakihi me ngā whakahaere
  • Income tax Tāke moni whiwhi mō ngā pakihi
  • Employing staff Te tuku mahi ki ngā kaimahi
  • KiwiSaver for employers Te KiwiSaver mō ngā kaituku mahi
  • Goods and services tax (GST) Tāke mō ngā rawa me ngā ratonga
  • Non-profits and charities Ngā umanga kore-huamoni me ngā umanga aroha
  • International Tāwāhi
  • More... Tāpiri atu…
Intermediaries and others Ngā takawaenga me ētahi atu
  • Tax agents Ngā māngai tāke
  • Bookkeepers Te kaikaute
  • PAYE intermediaries Ngā takawaenga PAYE
  • Payroll bureaus Ngā tari utu ā-rārangi
  • Digital service providers Ngā kaiwhakarato pūmanawa rorohiko
  • More... Tāpiri atu…
About us
  • About us
  • IR careers
News
  • Media releases
  • Updates
  • Subscribe
  • Seminars
Related Websites
  • Tax Technical
  • Tax Policy
  • International
Contact us
  • Contact us
  • Media queries
  • Tax Technical queries
  • Tax Policy queries
English
Register
myIR login
Inland Revenue
Home
Individuals and families Ngā tāngata me ngā whānau
Popular pages Ngā wharangi rongonui
Cost of Living Payment Utu mō te utu oranga IRD numbers Ngā tau IRD File my individual tax return Te tuku i tētahi puka tāke takitahi Support for families Ngā tautoko i ngā whānau Managing my tax Te whakahaere i taku tāke
More individuals and families
Familes Ngā whānau
Working for Families Working for families Child support Te tautoko tamariki Paid parental leave Te utu tiaki pēpi
Property and Trusts Ngā wharangi rongonui
Trusts and estates Ngā rōpū kaitiaki me ngā rawa tuku iho Property Ngā rawa
Individuals Ngā tāngata
Income tax for individuals Te tāke moni whiwhi mō ngā tāngata takitahi Non-residents Ngā kainoho-tāwāhi Self-employed Mahi ā-kiri Kiwisaver for individuals Kiwisaver mā te tangata takitahi Student loans Ngā pūtea taurewa ākonga Cryptoassets for individuals Ngā rawa whiti-rangi mā te tangata takitahi Unclaimed money
Situations Ngā āhuatanga
I am going overseas Kei te haere ahau ki tāwāhi I received an income tax assessment I whiwhi i ahau tētahi aromatawai tāke moni whiwhi I'm struggling to file and pay my tax
More situations
Business and organisations Ngā pakihi me ngā whakahaere
Popular pages Ngā wharangi rongonui
Covid-19 Businesses and organisations KOWHEORI-19 Ngā pakihi me ngā whakahaere File a companies income tax return - IR4 Te tuku i tētahi puka tāke moni whiwhi kamupene - IR4 Not-for-profits and charities PAYE calculator to work out salary and wage deductions Property Ngā rawa IRD numbers Ngā tau IRD
More business and organisations
Income tax Te tāke moni whiwhi
Types of business income Ngā momo moni whiwhi pakihi Tax rates for businesses Ngā pāpātanga tāke mō te pakihi Balance dates Ngā rā mutunga tau pūtea
GST Tāke hokohoko (GST)
Charging GST Te uta i te tāke hokohoko Claiming GST Te kerēme tāke hokohoko
Employing staff Te tuku mahi ki ngā kaimahi
Register as an employer Te rēhita hei kaituku mahi Paying staff Utu kaimahi Payday filing Te tāpaetanga rā utu Deductions from income Ngā tangohanga mai i ngā moni whiwhi Kiwisaver for employers Te KiwiSaver mō ngā kaituku mahi
International Tāwāhi
International tax for business Te tāke aowhānui mō ngā pakihi
Situations Ngā āhuatanga
I am starting a new business Kei te tīmata au i tētahi pakihi hou I am going to employ someone Kei te tuku mahi ahau ki tētahi tangata My business is making a loss Kei te hapa taku pakihi
More situations
Intermediaries and others Ngā takawaenga me ētahi atu
Intermediaries Ngā takawaenga
Becoming an intermediary Te tū hei takawaenga Getting authority to act Te whiwhi whakamanatanga Executive office holders Ngā kaipupuri tūnga whakahaere Linking client accounts Te honohono pūkete kiritaki Nominated person Te tangata kua whakaingoatia Tax pooling Te whakarōpū tāke Gateway services
More intermediaries and others
Tax agents Ngā māngai tāke
Agents answers Ngā Whakautu Māngai Tax agent status Te tūnga māngai tāke Extension of time arrangements Te whakaroa i ngā whakaritenga wā Managing consolidated groups Te whakahaere rōpū tōpū Income tax for individual clients of tax agents Te tāke moni whiwhi mā ngā kiritaki takitahi a ngā takawaenga News updates for tax agents
More tax agents
Digital service providers Ngā kaiwhakarato ratonga matihiko
Getting started guide About the developer portal Mō te tomokanga kaiwhakawhanake Gateway services architecture Te hanganga ratonga tomokanga Services catalogue Te putumōhio ratonga
More digital service providers
Roles Ngā tūranga
Tax agents Ngā māngai tāke Bookkeepers Ngā kaikaute PAYE intermediaries Ngā takawaenga PAYE Payroll bureaus Ngā tari ripanga utu kaimahi Other representatives Ētahi atu māngai
Search tips

Ngā mea me mōhio koe ina hoko mai me te hoko atu i ngā whare What you need to know when you buy and sell residential property

Property
Property
  • Buying and selling residential property
    • When you buy and sell
    • My buying or selling situation
    • The bright-line property rule
    • Property and associated persons
    • GST and residential property
    • Income tax filing and property sales
    • Keeping records when buying a second property
    • Residential land withholding tax
What
The intention rule
Who
Buyers and sellers of residential property
When
When you buy a residential property

If you're buying residential property, make sure you know what your tax obligations will be when you come to sell the property.

It's your intention when you buy a property that matters

Nearly everyone buying a property will sell it at some stage. However, this alone is not enough for any profits to be taxed. In most cases you do not have to pay tax when you sell your main home or if you bought the property as a long-term rental investment.

You need to think about your intentions when you first agree to buy a property. What you intended to do will determine your tax situation when you come to sell. If you buy with a firm intention to resell the property, then you'll have to pay tax on any profit you make. This is called the 'intention rule'.

The intention to sell does not need to be the main reason for buying the property - it could be one of a number of reasons for buying.

For example, if one of your intentions when buying is to flip the property, even if it is rented you'll have to pay income tax when it's sold. 

This intention rule is different to the bright-line property rule.

The bright-line property rule

Your history of buying and selling counts

If you have a regular pattern of buying and selling property, then you may be considered a property dealer and may have to pay tax when you sell property.

This may apply even to your main home, if you have a pattern of buying and selling the home you live in.

There is no set number of properties you can buy and sell before you may need to pay tax on profit from sales.

If you're unsure whether you're a property dealer, you should seek advice from your tax professional.

Selling your property within a bright-line period

If you buy a property and sell it within an applicable bright-line period, you may have to pay tax on any profit, regardless of your intention or property buying and selling history when you bought the property.

The bright-line period starts on the date you bought the property which is generally the date the property's title is registered with Land Information New Zealand (LINZ) (generally the settlement date) and ends when you enter into a binding sale and purchase agreement to sell the property.

Which bright-line period applies to your property in most cases depends on when the sale and purchase agreement you signed to acquire your property became binding. If the sale and purchase agreement became binding:

  • on or after 27 March 2021, the bright-line period is 5 years to the extent the property has a qualifying new build on it and 10 years for all other properties
  • between 29 March 2018 and 26 March 2021, the bright-line period is 5 years
  • between 1 October 2015 and 28 March 2018, the bright-line period is 2 years.

A property acquired on or after 27 March 2021 will be treated as having been acquired before 27 March 2021, if the purchase was the result of an offer the purchaser made on or before 23 March 2021 that couldn’t be withdrawn before 27 March 2021. This means that the 5-year bright-line test applies.

The bright-line property rule

Resident land withholding tax for offshore persons

If you're an offshore person, a resident land withholding tax (RLWT) may also be deducted at the time of the property sale if you sell it within the applicable bright-line period.

RLWT is deducted unless the seller holds a certificate of exemption from RLWT.

Residential land withholding tax (RLWT) 

Main home

Your main home  is the property where you live for most of the time or if you have more than 1 property it is the one that you have the greatest connection to. If your property was used as your main home for the entire bright line period it may be excluded from the bright-line property rule.

Exclusions to the bright-line rule

If you're a dealer, developer or builder

You are liable to pay tax on the profit of any properties you sell which were bought as part of your property or building business. Also, you may need to pay tax on properties not purchased as part of your business if you sell them within 10 years.

The 10-year rule

If you sell a property within 10 years of buying it or, in the case of builders, within 10 years of completing improvements to it you may have to pay income tax on the profits. Even if the property was not purchased as part of the business you may still have to pay tax.

If you are in these industries or associated to someone who is, we recommend you speak with a tax or legal professional to find out how these rules apply to you.

If you're associated with a land dealer, developer or builder

If you're associated with someone in the property industry - you're an associated person. This means you may have to pay tax on all or some of your property transactions, even if you're not personally a property dealer, developer or builder.

These transactions include tax on the sale of a property if at the time the property was acquired you had an association with: 

  • a property dealer or developer when you brought the property
  • a builder when significant improvements started on a property.

If you are in these industries or associated with someone who is, we recommend you speak with a tax or legal professional to find out how these rules apply to you.

Property and associated persons 

Land transfer tax statement

People buying, selling or transferring property must provide tax information using a Land transfer tax statement.  Land information New Zealand (LINZ) collect the information on our behalf. Tax statements are required when most land is transferred.

We use the information to make sure property tax obligations are met. Even if the sale of your home is not taxable, you must provide your IRD number on the  tax statement. A separate statement is required from every seller and buyer.

Property tax compliance requirements LINZ

Our question we've been asked QB16/07 has more detailed information about regularly buying and selling properties.

QB 16/07: Income tax – land sale rules – main home and residential exclusions – regular pattern of acquiring and disposing, or building and disposing

Our question we've been asked QB 16/06 has more detailed information on land acquired for a purpose or with an intention of disposal

QB 16/06: Income tax -and acquired for a purpose or with an intention of disposal

You can use our property decision tool to work out if you have to pay tax on a property sale.

7 minutes
Property tax decision tool

Use this decision tool to help you work out if the property you are buying or selling is taxable under any of the property rules.

Go to this tool

    Was this page helpful?

    What did you like about this page?

    Please tell us how we could improve this page?

    Thanks for sharing your opinion! Your feedback has been received.

    Sorry there was an issue submitting your feedback, please try again later.

    Moving between Inland Revenue sites

    picto--truck

    Heads up. We're taking you to our old site, where the page you asked for still lives

    Continue to old site
    Last updated: 26 Jul 2021
    Jump back to the top of the page top
    Inland Revenue Inland Revenue

    FOLLOW US

    • Facebook
    • Twitter
    • Youtube
    • LinkedIn
    • Subscribe

    CONTACT US

    • Contact Information
      • Contact us
      • Media queries
      • Tax Policy enquiries
      • Tax Technical enquiries
    • About us
    • Careers
    • International

    SHARE THIS PAGE

    • Email this page
    • Linkedin
    • Facebook
    • Twitter

    SHARE THIS PAGE

    • About the site
    • Conditions of use
    • Privacy
    • Glossary
    • Accessibility
    • Copyright
    • MyIR Help
    © Copyright 2023 Inland Revenue
    New Zealand Government
    Shielded website