New Zealand ROI Calculator

No — New Zealand does not have a general capital gains tax. According to IRD, most one-off investment gains by individual investors are tax-free. NZ is unusual among OECD countries in this respect.

However, this does not mean all gains are tax-free. Specific rules in the Income Tax Act can bring a gain into tax — most commonly the 2-year bright-line test for residential property, the trader/dealer rules, intent-based provisions (s CB 4), the Financial Arrangements regime, and the FIF rules on offshore equities.

The bright-line test taxes profits from residential property sales if the property is sold within a set period of buying it. For property sold on or after 1 July 2024, the bright-line period is 2 years (reduced from 10 years).

If the test applies, the whole gain is taxable as income at the marginal rate. The main home exclusion means a property used as the primary residence for more than 50% of the ownership period is generally not caught. Inherited property and certain rollover relief situations are also excluded.

Share gains for individual investors are generally not taxable when held as a long-term investment. However, gains can become taxable if:

• Shares were acquired with the intention of resale (s CB 4)
• Trading is conducted as a business (frequent buying and selling, organised activity)
• The investor is a share trader or dealer by profession
• Shares are subject to the FIF regime (most offshore equities with cost > NZD 50,000)

For most "buy and hold" individual investors with NZ-listed shares, the gain on sale is not subject to income tax.

When a rule applies (e.g. bright-line, trader, FIF), the calculation is:

• (1) Sale price − purchase price − allowable costs = gain.
• (2) The whole gain is added to other taxable income for the year.
• (3) Tax is calculated on total income using the IRD progressive brackets (10.5%, 17.5%, 30%, 33%, 39%).

There is no inclusion-rate discount, no annual exempt amount, and no holding-period concession. The gain is taxed exactly like salary or business income.

The Foreign Investment Fund (FIF) regime applies to offshore equities and certain offshore funds held by NZ tax residents. A NZD 50,000 cost de minimis applies — below this, ordinary rules (dividends taxable, capital gains generally not) apply.

Above the threshold, instead of taxing actual gains, the FIF rules tax a deemed return, generally using the Fair Dividend Rate (FDR) method (5% of opening market value per year). Other methods include Comparative Value (CV) and Cost. Most US and UK shares held by individuals fall into FDR.

Dividends from NZ companies are fully taxable as income at the marginal rate. Many NZ dividends come with imputation credits — these represent tax already paid by the company and can be used to offset the shareholder's tax liability. A fully imputed dividend received by a 33%-rate taxpayer is effectively taxed at only 5% additional.

Resident Withholding Tax (RWT) is generally deducted at source. Dividends from offshore equities under the FIF regime are usually ignored in favour of the deemed FDR/CV return.

Most one-off, untaxed investment gains do not need to be reported because they are not taxable. However, you must report gains to IRD when:

• A property sale is caught by the bright-line test — file Form IR833 and report on the IR3 return.
• You are a property dealer or trader — gains are business income.
• You hold offshore equities and are subject to the FIF regime — calculate FDR/CV income annually.
• You receive dividends or rent — these are always reportable.

Income tax returns (IR3) for the 2025-26 tax year (which ended 31 March 2026) are due by 7 July 2026 for self-filers, or 31 March 2027 with a tax agent extension. The 2026-27 tax year (current) ends 31 March 2027.

When a gain is taxable in NZ, the cost base includes:

• (1) Purchase price of the asset
• (2) Acquisition costs — brokerage, legal fees, conveyancing
• (3) Disposal costs — agent fees, advertising, legal fees on sale
• (4) Capital improvements (for property — not routine maintenance)

Including all allowable costs reduces the taxable gain. For property under the bright-line test, holding costs (rates, interest, insurance) that have been deducted against rental income cannot also be added to the cost base.

Disposal costs (agent fees, broker fees on sale) reduce net sale proceeds and — where a gain is taxable — also reduce the taxable gain.

For ROI purposes: Net Proceeds = Sale Price − Disposal Costs, and Total Cost Base = Purchase Price + Acquisition Costs. This calculator includes both acquisition and disposal costs, giving an accurate picture of real profit.

For taxable share traders, IRD generally requires identical shares of the same class to be tracked on a weighted-average cost basis. Some traders use FIFO (first-in-first-out) with appropriate documentation.

For non-taxable long-term holders, this is largely academic — the gain isn't taxable, so the exact method has no immediate tax consequence. However, records should still be kept in case classification changes or shares fall under the FIF regime.

Yes. Income received while holding an investment — dividends, rent, or interest — contributes to total return and should be included for an accurate ROI picture. This calculator includes an optional field for income earned during the hold.

Important: This income is always taxable in NZ at marginal rates, even when the underlying capital gain is not. Imputation credits on NZ dividends, and Resident Withholding Tax (RWT) on interest, may offset some of this tax.

For long-term individual investors, gains on the sale of NZ-listed shares are generally not taxable. NZ has no general CGT and no specific provision taxes one-off share sales by individuals.

However, gains can be taxable if the investor is a share trader (in business), bought shares with intention to resell (s CB 4), or trades frequently in an organised way. Managed funds and KiwiSaver funds are taxed under the PIE (Portfolio Investment Entity) regime at the investor's Prescribed Investor Rate (PIR), capped at 28%.

According to IRD, cryptocurrency is treated as property. Unlike most other property, IRD's position is that crypto is generally acquired with the intention of disposal, which makes gains taxable under s CB 4.

So in practice, most crypto gains are taxable as income at the marginal rate. Mining, staking, and airdrops are also generally taxable as income when received. Records should be kept of every disposal, including swaps between cryptocurrencies.

Generally, yes. The main home exclusion means the sale of your principal residence is not caught by the bright-line test, provided you used it as your main home for more than 50% of the ownership period.

The main home exclusion can only be used once every 2 years. It does not apply if the property is used predominantly for business purposes, or if it sits on more than 4,500 m² of land (unless the larger area is required for reasonable use and enjoyment).

Rental income is taxed as income in the year received, at the marginal rate — allowable expenses (property management, repairs, rates, insurance, and from 1 April 2025 100% of mortgage interest) can reduce it. Per IRD, rental losses are now ring-fenced against future residential rental income only.

Capital gain from selling the property is generally tax-free, unless caught by the 2-year bright-line test or other rules. If caught, the whole gain is taxed as income at the marginal rate.

Generally, no. NZ has no specific tax on the sale of personal-use property such as cars, jewellery, art held for personal enjoyment, or household furniture. These are not investment assets, so the no-CGT default applies.

However, items acquired with the intention of resale, or items sold as part of a business (e.g. a regular antiques trader), can be taxable as income under s CB 4 or the business rules. Collectible items held as an investment for resale could also fall within s CB 4.