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New Zealand: Personal Taxation

Property Taxes

Income received from renting out property is liable to income tax. However, depreciation, agents’ fees and mortgage interest, legal fees and repayment insurance can be deductible for tax purposes, in addition to local property taxes, insurance, and repairs and maintenance.

New Zealand has no stamp duty, mortgage stamp duty, land tax, property purchase tax or capital gains tax. However, gains on the sales of property may be taxable if the seller is a dealer in property, purchased the land for resale, or the property was subject to development.

Local property taxes (rates) are levied by local authorities and are based on the rateable value of properties. The annual bill for an average family house is between NZD1,000 and NZD2,000. It is not uncommon for residents, either individually or collectively, to appeal against their property valuation in order to obtain a tax reduction. Rates pay for local services such as street cleaning, rubbish collection, lighting and subsidies paid to local public transport companies. They usually also include water supplies.

 

 

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