Rental property income is taxable in New Zealand, and landlords are required to file an IR3 tax return each year. Understanding what you can deduct — and the rules around interest deductibility and the bright-line test — is essential to managing your tax position.
Guides in This Section
- Rental Income Tax NZ — how rental income is taxed, what to declare, key rules
- Expenses Landlords Can Claim — the full list of deductible rental property expenses
- Bright-Line Property Tax Rule — when selling property triggers a tax liability
- Residential Rental Interest Deductibility — the rules on claiming mortgage interest from 2024–25 onwards
- Airbnb & Short-Stay Rental Tax NZ — tax rules for Airbnb, Bookabach and other short-stay platforms
- Rental Property Depreciation — how depreciation works on chattels and what you can claim
- Mixed-Use Asset Tax NZ — bach, boat, and holiday home tax rules for assets used privately and rented
- Commercial Property Tax NZ — GST zero-rating, building fitout depreciation, lease inducements
- Body Corporate Fees Tax NZ — which body corporate levies are deductible for apartment investors
Key Numbers for NZ Landlords
| Item | Detail |
|---|---|
| Rental income | Fully taxable at marginal rate |
| Mortgage interest deductibility | 100% from 1 April 2025 |
| Bright-line period | 2 years (new builds and existing residential post-July 2024) |
| Depreciation — chattels | Yes (depreciable at set IRD rates) |
| Depreciation — building | No (residential buildings not depreciable since 2011) |
| GST on residential rent | Exempt |
| Body corporate levies | Operating levies deductible; capital levies not immediately deductible |