NZ Brightline Test Calculator
The brightline test taxes gains on residential property sold within a set period. From 1 July 2024 the test was reduced to 2 years (it was 10 years for properties acquired 27 March 2021 – 30 June 2024). This calculator estimates whether your sale may fall within the brightline.
How this calculation works
The brightline test applies to residential land sold within a set period after acquisition. From 1 July 2024, the test period is 2 years (reduced from 10 years by the Taxation Act 2024). For properties acquired between 27 March 2021 and 30 June 2024, the 10-year test applies. Between 29 March 2018 and 26 March 2021 it's 5 years, and before 29 March 2018 it's 2 years. New builds acquired from 1 July 2024 are subject to a 5-year test. The main home exclusion generally applies if the property was used predominantly as your main home.
Sources
- IRD — Brightline test: ird.govt.nz/property/buying-and-selling-residential-property/brightline-test
- Taxation (Budget Measures) Act 2024: legislation.govt.nz
- New build definition: taxpolicy.ird.govt.nz
When to use this
- — Estimating whether you need to budget for brightline tax before selling
- — Understanding the test period that applies to your property
- — Checking whether the main home exclusion might apply
Important limitations
- — Brightline rules are complex — this is an estimate only
- — Does not determine whether other land sale provisions apply (intention test, dealer, developer)
- — Sale costs (agent fees, legal) are not deducted from gain in this simple estimate
- — Mixed-use properties have proration rules — get specific advice
Common questions
Does the brightline test apply to my main home?
Generally no. If you lived in the property as your main home for the entire ownership period, the main home exclusion usually applies. However, there are limits — you can't use the exclusion more than twice in any two-year period, and it doesn't apply if you have a regular pattern of buying and selling.
What counts as a 'new build' for the 5-year test?
A new build is a self-contained dwelling that received its code compliance certificate on or after 27 March 2020. Certain converted or relocated dwellings may also qualify. The definition is specific — confirm with IRD or a tax adviser.
Can I deduct sale costs from the taxable gain?
Yes — the brightline tax is calculated on the net gain (sale price minus purchase price, minus costs of acquisition and disposal). This calculator shows the gross gain for simplicity; actual tax may be lower.
Next step
Turn these numbers into a plan.
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Last reviewed: 2026-07-23. Information only — not financial advice. Use these estimates to prepare better questions before speaking with a lender, lawyer, or regulated adviser.