Main home exclusion
A New Zealand exemption that prevents profits on the sale of a person's main home from being taxed under the bright-line test, subject to use and timing conditions.
The main home exclusion removes the bright-line test from applying to the sale of a property that has been used as the owner’s main home, provided the statutory conditions are met. Broadly, the property must have been used predominantly as the main home for the required proportion of the ownership period.
The rules differ by acquisition date: for properties bought between 27 March 2021 and 30 June 2024, a “change of use” rule can make part of the gain taxable if the property was not the main home for more than 12 months at a time. For properties acquired on or after 1 July 2024, the simpler pre-2021 main home test applies.
Anyone relying on this exclusion on a sale near the end of the bright-line period should read the IRD guidance for their specific acquisition date.
Primary source
Inland Revenue (IRD) — Main home exclusion →Last reviewed 15 April 2026. Rates, thresholds, and deadlines change — always verify against the primary source before making decisions.