Quick Answer

Rental income in NZ is taxed at your marginal income tax rate after allowable deductions. From 1 April 2025, mortgage interest is 100% deductible for NZ rental properties. The bright-line test taxes gains on investment properties sold within 2 years of purchase at your marginal rate. Enter your income, expenses, and property details below to estimate your rental tax and bright-line liability.

Property sale details

Purchase Price

Sale Price

Purchase Date

Sale Date

Main Home?

Main home exemption applies if this is your primary residence

Marginal Tax Rate

Bright-Line Result

Bright-line likely triggered

Estimated Tax on Gain

$60,000

at 30% marginal rate

Capital Gain

$200,000

Holding Period

2 years

Net Proceeds

$140,000

BL Rule Applies

2-year

Current NZ bright-line rules: 2-year rule for new builds purchased after 27 March 2021 and all properties purchased after July 2024. 10-year rule for other properties purchased between 27 Mar 2021 and July 2024. Always consult a tax advisor.

Rental income details

Annual Gross Rent

Deductible Expenses

Rates, insurance, maintenance (excl. interest)

Interest Expense

Deductibility being phased back in — check current %

Other Income

Enter your salary/other income for a progressive bracket calculation — or leave blank to use the manual rate below

Marginal Tax Rate

Select based on your income bracket: 10.5% up to $14k, 17.5% $14–48k, 30% $48–70k, 33% $70–180k, 39% above $180k

Tax Result

Estimated Rental Tax

$7,740

at 30% marginal rate

Gross Rent

$33,800

Total Deductions

$8,000

Taxable Rental Income

$25,800

Net After Tax

$18,060

Interest deductibility for residential rental properties is being phased back in (2024–2026). In 2025/26, up to 80% of interest may be deductible. From 2026/27, full deductibility is expected to return. Consult a tax professional for your specific situation.

Bright-line test

The bright-line test taxes gains from residential property sales if sold within the bright-line period. The main home exemption applies if the property was your primary residence for most of the ownership period.

Learn about bright-line →

Rental income tax

Rental income is taxable in NZ. You can deduct legitimate expenses like rates, insurance, repairs and property management fees. Interest deductibility has been restricted but is being phased back in.

Explore deductions →

Get professional advice

Property tax in NZ is complex and changes frequently. This calculator provides estimates only. Always consult a registered tax advisor or accountant for advice tailored to your specific situation.

NZ Property Tax Calculator