Property and the 2026 Election: What's Confirmed, What's Proposed, and What the Data Actually Shows
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New Zealand goes to the polls on 7 November 2026, and property tax is shaping up as one of the more talked-about topics this campaign. If you're holding or considering an investment property, it's worth knowing what's actually locked in today, what each party is proposing, and what previous elections have actually done to house prices. This isn't about who to vote for. It's about separating what's confirmed from what's still just a proposal, so you can form your own view with the full picture.
What's actually in place right now
Two settings matter most for property investors today, and both are already law.
Mortgage interest deductibility is back to 100%, restored from 1 April 2025. Investors can once again deduct the full interest cost on residential rental properties against their rental income, the same as before the phased restrictions introduced in 2021.The bright-line test is now 2 years, down from the longer timeframes that applied in past years, effective from 1 July 2024. Sell a residential investment property outside that 2-year window and any gain generally isn't taxed under this rule.
Neither of these settings is proposed to change by the current government. What might change depends on who's in government after November.
Where each party stands on property tax
National and ACT are campaigning on keeping the current settings as they are: 100% interest deductibility and the 2-year bright-line test stay, with no new property-specific tax proposed.
Labour has put forward a costed capital gains tax proposal, set to apply from 1 July 2027 if Labour forms the next government. It would apply to gains made from that date forward, not retrospectively.
The Greens are proposing a broader wealth tax alongside an inheritance tax, rather than a property-specific capital gains tax. Property would be captured as part of overall wealth rather than taxed on sale.
TOP is proposing a land value tax, taxing the underlying land value rather than capital gains on sale.
NZ First has been largely silent on property tax specifically this campaign, with its platform focused more heavily on immigration policy.
What each party is campaigning on beyond tax
Tax isn't the only property-relevant policy on the table this election. Here's what each party is putting forward for 2026:
National is campaigning on replacing the Resource Management Act, a turnaround plan for Kāinga Ora, an expanded First Home Loan scheme, a Home Energy Fund, and a golden visa carve-out for investment migrants.
Labour is pledging to reverse recent rent-rise settings and introduce SolarSaver, a scheme aimed at making solar power more accessible to homeowners.
ACT shares National's RMA-replacement direction, with a broader deregulation philosophy underpinning its approach to housing supply.
The Greens are campaigning on an expanded state build programme, a Renters' Rights Bill, and a rental warrant of fitness scheme.
TOP is proposing zoning reforms aimed at triggering a house-building boom, tied to its land value tax approach.
NZ First's 2026 housing-adjacent platform centres on immigration, framed as a "handbrake" on demand-side pressure on housing.
Where each party has traditionally stood on housing
Separate from this election's specific proposals, it's worth knowing each party's longer-run position on housing, since this shapes how firmly they're likely to hold their current line if coalition negotiations start.
National and ACT have traditionally favoured lighter-touch regulation and market-led supply. Labour has traditionally leaned toward demand-side tax measures and tenant protections. The Greens have long championed a larger state role in both building homes and taxing wealth. TOP's land value tax approach reflects a long-standing, consistent policy position for the party rather than an election-specific one. NZ First has traditionally treated housing primarily through the lens of immigration and population growth rather than tax settings.
What's still unresolved
A few things won't be clear until closer to, or after, the election itself: whether Labour's capital gains tax proposal survives any coalition negotiation if Labour doesn't govern alone, how firmly minor parties would hold their property-related bottom lines in coalition talks, and whether any party announces new property-specific policy between now and 7 November. Why New Builds Appeal to Cross-Border Property Investors.
Where this leaves you
Whatever the result on 7 November, the two settings that matter most for investors today, 100% interest deductibility and the 2-year bright-line test, are locked in under the current government and aren't proposed to change under National or ACT. What could change depends on the outcome and any coalition agreement that follows. And historically, borrowing costs have had a far bigger say in where prices go than the election itself.
This blog sticks to describing what's currently in place, what's been proposed, what parties have historically believed, and what the data actually shows, so you can form your own view with the full picture. It doesn't constitute financial, tax, or voting advice. We're not here to tell you how to vote, just to help you separate what's confirmed from what's still just a proposal.
Chat to the team today
If you want to talk through what any of this could mean for your own property plans, our team is happy to have a straightforward conversation, no pressure, no politics.
