NZ bright-line test calculator (2-year rule)
Selling a residential property in New Zealand? Since 1 July 2024, profit is taxable under the bright-line test if your end date (usually the day you sign the sale agreement) is within 2 years of your start date (usually the day your title was registered). Enter the dates to see if you're inside the period and how many days it covers. You can also check the main home exclusion: you need to have lived there for more than 50% of the period. Results follow IRD's worked examples.
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CalculatorStart and end datesMain home exclusionExamplesFAQ
Bright-line start and end dates
| Situation | Start date |
|---|---|
| Usual purchase | The date the transfer to you is registered with LINZ (usually settlement) |
| Buying off the plans | The date you entered into the agreement to buy |
| Land from a subdivision | The date the original (pre-subdivision) title was registered to you |
| Lease with a perpetual right of renewal | The date the lease was granted |
End date: the date you enter into the agreement to sell. For a gift it's the date the transfer is registered, and for a mortgagee sale it's the date of disposal. If more than one date could apply, use the earliest.
Main home exclusion
The profit isn't taxed if the property was your main home for more than 50% of the bright-line period and more than 50% of the land area was used as your main home. This doesn't apply if you've already used it twice in the 2 years before, or if you have a regular pattern of buying and selling.
Examples (IRD guide IR1229)
| Example | Result |
|---|---|
| Mia: start 5 Jan 2022, sold 27 Jul 2024 | More than 2 years: not taxable |
| Marie: start 17 May 2023 (registration), end 26 Jul 2024 | Within 2 years |
| Bob, subdivided land: start 1 May 2021 (original title), end 1 May 2025 | Not within 2 years |
| Denise, off the plans: start 2 Jul 2023 (agreement), end 1 Sep 2024 | Taxable |
| Kelly, perpetual lease: start 1 Jul 2023, end 1 Aug 2024 | Taxable |
| Helen, gift: start 1 May 2025, end 1 Feb 2027, market value $450,000 less $400,000 | Taxable: $50,000 |
| Mel: 20 May 2023 to 30 Dec 2024 = 590 days, lived in 381 days (65%) | Main home exclusion applies |
| Ari: 20 May 2024 to 30 Dec 2025, lived in 259 days (44%) | Exclusion doesn't apply |
IR1229 also gives 590 days for Ari's period. Counted the same way as Mel's, 20 May 2024 to 30 Dec 2025 is 589 days, and 259 days is still 44%.
FAQ
What is the bright-line test in NZ now?
For residential property sold on or after 1 July 2024, any profit is taxable if the bright-line end date (usually when you sign the sale agreement) is within 2 years of the start date (usually when title was registered to you). Before that the periods were longer.
When does the bright-line period start and end?
It usually starts on the date the transfer to you is registered with LINZ, or the agreement date if you bought off the plans. It ends on the date you enter into the agreement to sell, or for a gift, the date the transfer is registered.
Does the bright-line test apply to my main home?
Not if it was your main home for more than 50% of the bright-line period and more than 50% of the land was used as your main home. This doesn’t apply if you’ve used it twice in the previous 2 years, or if you regularly buy and sell.
How is bright-line profit worked out?
Generally it’s the sale price less the cost of the property, then less any other deductible costs such as legal fees and improvements. A gift is treated as sold at market value, so IRD’s Helen example taxes $50,000 on land worth $450,000 that cost $400,000.
Is the bright-line test still 10 years?
No. The 10-year and 5-year periods applied to sales before 1 July 2024. For a bright-line end date on or after 1 July 2024, the period is 2 years, whenever the property was bought.
Sources (checked 17 Oct 2026): IRD Bright-line property tax guide (IR1229); The bright-line test; Start and end dates; Exclusions to the bright-line test.
General information, not tax advice. This covers end dates from 1 July 2024 only. It doesn't work out deductible costs, apply the other exclusions (such as inherited property and relationship property) or the rules for trusts and companies, or tell you whether profit is taxable under other land sale rules. Check IR1229 or ask a tax agent.