New Zealand Election 2026: What could change under each Party’s tax policy?

New Zealand Election 2026: What could change under each Party’s tax policy?

Estimated Reading Time: 7 min

With election day set for 7 November 2026, tax policy has once again become one of the key platforms on which the parties vying for power have tried to differentiate themselves.

This close to the election, we believe the picture is now reasonably complete around 2026 New Zealand election tax policies and the  proposals across the political spectrum. However, as with every cycle, coalition maths will matter more than pre-election policy announcements, so it will be a matter of waiting to see what falls out the back end of the process.

The parties proposing structural tax change

Labour
Labour is arguably the most centrist of the reformers. Its headline policy is a 28% flat capital gains tax (CGT) on residential investment and commercial property, applying only to gains arising from 1 July 2027, unless the original purchase price was higher and this reduces the taxable gain (after the cost of any capital improvements is also deducted).

The family home, farms, lifestyle blocks, KiwiSaver, shares, businesses, personal items and inheritances are all excluded, with roll-over relief for small businesses trading up their premises, and with capital losses quarantined against future property gains. Revenue – forecast at around $700 million a year – is ring-fenced for health, starting with three free GP visits annually.

Overall this is a modest CGT that avoids the worst of the complexity a comprehensive regime would bring, though it is still considerably more involved than another bright-line tweak, and opponents see base-broadening risk over time. Labour have only recently confirmed that, because of the introduction of a CGT regime, they are not proposing to re-implement the denial of tax deductions for interest costs on residential rental properties. Expect rental loss ring-fencing to continue unchanged, and whether these losses are also available to reduce any CGT arising has not yet been confirmed.

Other tax changes proposed by the party include the repeal of the Investment Boost programme to fund its Small Business Action plan, which increases the immediate write off threshold for new business assets to $10,000 (from $1,000) and the GST registration threshold from $60,000 to $80,000.

Green Party
The Green Party starts from the broad premise that the current system isn’t fit for purpose. Its package includes a 2.5% annual wealth tax on individual net assets above $10 million (family homes excluded), a capital acquisition tax of 33% on inheritances and gifts above $1 million paid by the recipient, a corporate tax rate rise from 28% to 33% for businesses with turnover above $30 million, a 0.06% levy on banks with liabilities over $100 billion, and reclassification of related-party service and licence fees as royalties for NRWT purposes. Rather than a CGT, the Green Party seeks to restore the prior 10-year bright-line test and (unlike Labour) would again seek to deny landlord interest deductibility. They are also proposing a $10,000 per annum income tax free threshold and a new top tax rate of 45% for income above $160,000.

Te Pāti Māori
Te Pāti Māori goes further in many places. Its “Kiwi tax plan” proposes a progressive wealth tax starting at $2 million (1.5%, rising to 2% and 2.5%), a 33% company rate for all businesses, a 5% international profit transfer tax, a 33% land banking tax, a 2% vacant house tax, new 42% and 48% top income tax rates on income over $180,000 and $300,000 respectively, and a 5% stamp duty on residential sales with a first-home-buyer exemption under $1 million. Most of the revenue would fund a $30,000 tax-free threshold and a targeted GST rebate termed the “kai credit” for those earning under $60,000.

Opportunity
Opportunity (formerly TOP) proposes the broadest restructure of the tax system: a 1.75% land value tax on urban land (0.5% rural), a tax-free Citizen’s Income of $19,400 per adult, and three income tax brackets of 28%, 34% and 39%. Deferral of the land value tax would be available for retirees and farmers. Opportunity has campaigned heavily on a ‘tax reset calculator’ tool that allows potential voters to run their own numbers around the personal impact of their proposed changes to income tax brackets and the land value tax charge.

The parties campaigning on ‘no new taxes’

National
National has not released a standalone tax policy document with specific rates, and in August confirmed it will not campaign on any new taxes — dropping a previously mooted accommodation levy. It has signalled possible income-tax threshold changes and R&D credit adjustments without publishing any details, however it is clear that a vote for National is very much a vote for the status quo when it comes to tax settings.

ACT
ACT opposes capital gains and wealth taxes outright, campaigning once again on a flatter income-tax structure, spending restraint and a faster path to surplus.

NZ First
NZ First has not published an official comprehensive 2026 income-tax policy. At the time of writing the party has very recently signalled its intent to lower the company tax rate to 20% for companies with turnover under $30m (the same threshold as the Green Party’s policy). Designed to encourage reinvestment and improve productivity, opponents may argue that the up to 19% gap then opened up between corporate tax and personal tax rates will result in negative behavioural changes, for example deferring taxing points via larger shareholder advances.

Its other tax-relevant announcements include the universal $5,000 Kiwi Kids Grant (tax-free, paid via IRD) and KiwiSaver contributions at birth, alongside a firm position on retirement settings.

It’s worth noting that most parties (including both major parties) have confirmed support for the increase to Kiwisaver contribution rates, with minor differences around mandating employee contributions, among other things.

Why coalitions are the real story

Under MMP, no party’s policy survives intact.

If a left-wing coalition forms the government, a move to tax capital in some shape or form becomes the common denominator across Labour, the Greens, Te Pāti Māori or Opportunity.

If a right-wing coalition is formed, the focus shifts to what might be reversed to strengthen the government’s books, as well as what targeted levies may be imposed around the fringes of the tax system to boost revenue.

The direction of travel appears to point to further tax change whatever the shape of the next government, with several areas looking likely regardless of the outcome, including higher KiwiSaver contribution rates (6% for employers from 2032), some form of personal tax relief at lower incomes, as well as new funding mechanisms for local infrastructure. We may see changes or the removal of the Investment Boost scheme under either a left or right wing coalition.

What could the 2026 election mean for businesses and investors?

For clients, the range of possible tax outcomes this cycle is unusually wide, however the practical message is to avoid rushing to restructure on the basis of campaign announcements. Nothing changes unless legislation passes, and post-election negotiations will do most of the work.

Talk to our experts

If you’re concerned about how the proposed tax changes could affect your business, investments or wider financial position, talk to your Nexia advisor. We can help you understand the potential implications and plan ahead as the post-election tax landscape becomes clearer.