NZ Bright-Line Test Calculator.
Enter your purchase and sale dates and we'll tell you instantly whether bright-line tax applies — covering the current 2-year rule and the older 5- and 10-year rules.
Enter your property details to see the result.
Free, no signup needed.
Which bright-line period applies?
For sales on or after 1 July 2024 the rule is set by when you sell — the 2-year rule applies regardless of acquisition date. For sales before 1 July 2024 the rule depended on when you acquired.
Sold on/after 1 Jul 2024
2-year rule. All residential property. The current regime.
Acquired 27 Mar 2021 → 30 Jun 2024
10-year rule (5 years if it was a qualifying new build). Only relevant if you sold before 1 Jul 2024.
Acquired 29 Mar 2018 → 26 Mar 2021
5-year rule. Only relevant if you sold before 1 Jul 2024.
Acquired 1 Oct 2015 → 28 Mar 2018
2-year rule. The original bright-line regime.
When the bright-line test doesn't apply
Main home
Used as your main home for more than 50% of the period AND more than 50% of the property's area (including yard, gardens, and garage). Blocked if you've used it twice in the prior 2 years, or have a regular pattern of buying/building and selling main homes.
Inherited property
Property received from a deceased estate. The beneficiary's subsequent sale of the inherited property is also exempt.
Rollover relief
For relationship settlements, associated persons, and certain trust transfers, the transferor isn't taxed at transfer — but the recipient inherits the previous owner's start date and cost. The clock carries over, it isn't reset.
Bright-line questions, answered.
What is the bright-line test?+
The bright-line test is NZ's rule that taxes the gain on residential property sold within a set period after acquisition. It's not a separate tax — the gain is taxed at your marginal income tax rate.
What is the current bright-line period?+
Two years. For any residential property sold on or after 1 July 2024, the bright-line test only catches sales within 2 years of the acquisition (title transfer) date.
What if I bought under the 5- or 10-year rule?+
For sales on or after 1 July 2024 the rule is set by the sale agreement date — the 2-year rule applies even if you acquired under the old 5- or 10-year regime. For sales before 1 July 2024 the rule is set by your acquisition date instead.
What counts as acquisition date?+
The date title transferred to you — usually the settlement date on your Sale & Purchase Agreement. Not the date you signed the contract.
What counts as sale date?+
The date you sign a binding Sale & Purchase Agreement to sell — even if conditions like finance or a building report still need to be met. Not the date the agreement goes unconditional, and not settlement.
Does the main home exclusion apply?+
Yes, if more than 50% of the property's area (including the yard, gardens, and garage) was used as your main home AND you lived there as your main home for more than 50% of the bright-line period. The exclusion is also blocked if you have a regular pattern of buying/building and selling main homes, or if you've already used it twice in the 2 years immediately before this sale.
What about inherited property?+
Inherited property is not subject to the bright-line rule. The transfer from the deceased estate to the executor and on to the beneficiary is exempt, and the beneficiary's subsequent sale of the inherited property is also exempt.
What is rollover relief?+
For certain transfers — relationship settlements, associated persons, certain trust transfers — the transferor isn't taxed at the time of transfer, and the recipient is treated as having acquired the property at the previous owner's start date and original cost. The bright-line clock isn't reset or paused — it carries over. So if the recipient later sells while still inside the period, bright-line tax can still apply. Rollover rules are narrow; confirm with a tax advisor.
Zelvo handles the rental tax side.
While you hold the property, Zelvo tracks rental income, applies IRD-compliant deductions, and produces IR3-ready figures in about 10 minutes.
This is a guide only, not tax advice. Tax rules change each year and your situation may involve factors not covered here. Consult a registered NZ tax professional or chartered accountant before filing. Zelvo accepts no liability for errors in tax calculations or filings made using this tool.