New Zealand 2026 election: Who pays more or less tax?

Policy comparison · 18 October 2026 · General election: 7 November 2026

The main dividing line in this election is whether New Zealand should continue relying largely on its existing tax system, or shift more of the tax burden towards wealth, property, land and higher incomes to fund public services and household support.

National and ACT emphasise controlling government spending, investment and limiting new taxes. Labour proposes a targeted capital gains tax to fund healthcare. The Greens and Te Pāti Māori propose more extensive tax changes, including tax relief for many ordinary earners alongside higher taxes on wealth and some businesses. The Opportunity Party (formerly TOP) proposes a broader redesign of income tax, land tax and income support. Tax Tips: 2026 General ElectionSummary of 2026 election tax policiesThe main parties vying to form New Zealand's next government

The election is on 7 November 2026, so these are campaign proposals, not enacted changes. Some would also depend on coalition negotiations.

1. The parties at a glance

Party	Who could pay less?	Who could pay more?	How public services would be funded
National	No new general tax increase promised; possible future income-tax relief, but no new formal tax-cut package announced	No new taxes promised; existing taxes remain	Economic growth, spending restraint and reprioritisation
Labour	Most people whose only property is their family home; eligible small businesses receive targeted tax relief	Owners selling residential investment or commercial property at a taxable gain	A 28% capital gains tax on covered property gains, with all revenue earmarked for health
Greens	Most income taxpayers, especially lower and middle earners	People with net assets above $10m, recipients of large inheritances or gifts, and larger companies	Wealth, inheritance and business taxes, plus changes to property-tax rules
Te Pāti Māori	Lower earners, through a $30,000 tax-free threshold and targeted food-cost relief	High-wealth households, companies and some property owners	Wealth, company, land and property transaction taxes
The Opportunity Party (TOP)	Eligible adults receiving a proposed $19,400 annual Citizen’s Income; effects vary by income	Some landowners and higher-income earners, depending on their overall tax and income-support position	Land value tax and a redesigned tax-and-transfer system
ACT	Potential beneficiaries of its targeted tax and savings changes	No comprehensive new general tax package announced	Spending restraint and alternative funding mechanisms, including a tourism dividend from existing revenue
New Zealand First	Some smaller businesses under its proposed lower company-tax rate	Depends on the final combination of business and retirement-saving changes	Targeted business reforms and existing government revenue

This is a summary of announced policies, not a ranking of which party is best. The distinction between an announced policy and a campaign promise that has not been fully costed or implemented is important. Tax Tips: 2026 General ElectionLabour's 2026 Election PoliciesNational’s plan to secure New Zealand’s futureSummary of 2026 election tax policies

2. What the major tax plans mean for different people

If you earn a salary or wages

Greens: The first $10,000 of annual income would be tax-free. Their proposed rates reduce tax for many low- and middle-income earners, while the top rate rises to 45% for income over $160,000. The party says 96% of people would receive an income-tax cut.

Te Pāti Māori: The first $30,000 would be tax-free, with higher marginal rates above that threshold. A targeted Kai Credit would also support eligible people earning $60,000 or less.

Labour: No comparable broad personal income-tax cut is central to its announced package.

National: Promises no new taxes, but has not announced a formal new income-tax reduction package for this election. Tax Tips: 2026 General ElectionA tax system for all of usNational’s plan to secure New Zealand’s future

If you own a rental or commercial property

Labour: A 28% tax would apply to gains made after 1 July 2027 when covered residential investment or commercial property is sold. The family home, farms, shares, KiwiSaver and business assets are among the exclusions. You would not pay this tax merely for continuing to own a property.

Greens: Propose restoring the 10-year bright-line period and removing interest deductibility for residential investment property.

Te Pāti Māori: Propose a 2% vacant-house tax, a 33% land-banking tax and 5% stamp duty on residential property sales, with an exemption for first-home buyers purchasing homes below $1 million.

Opportunity: Proposes an annual land value tax of 1.75% on urban land and 0.5% on rural land, with specified exemptions and deferrals.

These taxes have different triggers: a property sale, annual land ownership, a vacant home or land held for development. They should not be treated as interchangeable. Capital Gains Tax to Level the Playing Field for Businesses, Create Jobs and Fix New Zealand's Health SystemTax Tips: 2026 General Election

If you have substantial wealth or receive an inheritance

Greens: Propose a 2.5% annual tax on an individual's net assets above $10 million, excluding the family home, plus a 33% tax on gifts and inheritances above $1 million, subject to exemptions.

Te Pāti Māori: Propose progressive annual wealth-tax rates beginning at 1.5% on the relevant band above $2 million, increasing to 2.5% above $10 million.

Labour: Its proposed capital gains tax is narrower: it covers qualifying property gains, rather than introducing a general annual wealth or inheritance tax.

National and ACT: Have not proposed equivalent comprehensive wealth-tax packages.

The Greens estimate that their wealth tax would affect around 0.3% of New Zealanders; Te Pāti Māori estimates its wealth tax would affect around 3%. These are party estimates, not independently guaranteed outcomes. Tax Tips: 2026 General ElectionTax Tips: 2026 General Election

If you run a business

Labour: Would let businesses with annual revenue below $10 million immediately write off eligible assets costing up to $10,000, and raise the compulsory GST-registration threshold from $60,000 to $80,000. It proposes funding these changes by replacing the existing Investment Boost incentive.

Greens: Would retain the 28% company-tax rate for smaller businesses while raising it to 33% for companies with annual turnover above $30 million.

Te Pāti Māori: Would raise the company-tax rate to 33% for all companies and introduce a tax on profits transferred offshore.

New Zealand First: Proposes a 20% company-tax rate for businesses with turnover below $30 million.

Opportunity: Proposes targeted support for technology adoption, research and development, and qualifying impact companies.

For business owners, the effect depends on company size, investment spending, land ownership and how income is paid out. A lower company-tax rate does not necessarily mean every owner will pay less overall. Tax Tips: 2026 General ElectionTax Tips: 2026 General Election

3. How would the parties pay for public services?

The key difference is not just how much tax each party proposes to collect. It is also which services get additional money, whether other spending is cut, and how much revenue the proposed tax changes actually raise.

National: contain spending and reduce debt

National says it can sustain frontline services without introducing new taxes. Its fiscal plan provides for $15.4 billion of additional health investment over four years, with $7.5 billion remaining for other cost pressures and new initiatives, including education and policing.

Its approach relies on spending discipline, economic growth and savings, including reductions in foreign aid and welfare expenditure. National's October fiscal plan forecasts a government operating surplus in 2028/29. National’s plan to secure New Zealand’s futureNational’s plan to secure New Zealand’s future

Main trade-off: service funding must fit within its spending and revenue plans. National's commitment against new taxes limits its ability to fund additional programmes through new taxation.

Labour: earmark property gains for healthcare

Labour proposes using revenue from its 28% capital gains tax on qualifying investment and commercial property profits to fund health services. The proposed package includes three free GP visits each year, free prescriptions, free maternity scans and free cervical screening for eligible people.

Labour says all revenue from the capital gains tax would be ring-fenced for health. It also promises to return to an operating surplus by 2028/29 and reduce net debt to below 20% of GDP. Capital Gains Tax to Level the Playing Field for Businesses, Create Jobs and Fix New Zealand's Health SystemLabour's 2026 Election Policies

Main trade-off: revenue depends on taxable property gains and sales. Because the tax applies when a property is sold, annual receipts could fluctuate rather than provide a perfectly predictable stream.

Greens: increase public investment through broader taxes

The Greens propose using revenue from wealth, inheritance and business taxes, alongside other tax changes, to reduce income tax for most people and support public services.

The party has also pledged to reverse National's public-service cuts and says it would invest in a stronger, better-resourced public service. A tax system for all of usGreens promise to reverse National’s Public Service cuts

Main trade-off: the plan aims to shift more of the tax burden towards wealth and large businesses. The amount available for services would depend on the revenue collected and the practical effects of implementing the new taxes.

Te Pāti Māori: redistribute income and wealth

Te Pāti Māori proposes raising the tax-free income threshold to $30,000, providing targeted food-cost relief and increasing taxes on wealth, companies and certain property transactions.

Its approach combines household tax relief with a broader tax base intended to support public investment and address economic inequality. Tax Tips: 2026 General ElectionTax Tips: 2026 General Election

Main trade-off: the proposed income-tax cuts would need to be assessed alongside the additional revenue from wealth and property taxes, as well as the administrative costs and behavioural responses those taxes could generate.

Opportunity: redesign income support and taxation

Opportunity proposes a Citizen's Income of $19,400 a year for eligible adult residents, combined with revised income-tax rates and an annual land value tax.

This is a broader restructuring of taxes and transfers rather than simply raising money for individual public services. The proposed income support would change how households receive government assistance, while the land tax would provide a different source of revenue. Tax Tips: 2026 General ElectionTax Tips: 2026 General Election

Main trade-off: the net effect on an individual would depend on the tax they pay, their eligibility for the Citizen's Income, and how existing benefits and other transfers are changed.

4. What could this mean for your household?

The following are useful starting points for comparing the proposals. They are not complete household tax calculations.

Your circumstances	Policies to examine most closely
Lower or middle salary, no investment property	Greens' $10,000 tax-free threshold; Te Pāti Māori's $30,000 threshold and Kai Credit
High salary	The proposed 45% top rate under the Greens, or 48% under Te Pāti Māori
Own your family home and no other substantial assets	Labour's proposed capital gains tax excludes the family home; the Greens also exclude it from their proposed wealth tax
Own one or more rental properties	Labour's capital gains tax, the Greens' landlord tax changes, and Te Pāti Māori's property taxes
Own land or a farm	Opportunity's land value tax and the parties' different treatment of farms and rural property
Run a small business	Labour's asset write-off changes, New Zealand First's proposed lower company-tax rate, and the Greens' company-tax threshold
Have substantial investments or expect a large inheritance	The Greens' wealth and capital acquisitions taxes, and Te Pāti Māori's wealth tax

Sources: Tax Tips: 2026 General ElectionLabour's 2026 Election PoliciesA tax system for all of us

One important qualification: a tax-free threshold does not automatically make every low-income household better off overall. Benefit entitlements, other taxes, employment income, family circumstances and the treatment of existing support payments all matter.

Likewise, a tax on landlords or businesses does not necessarily translate directly into higher rents or consumer prices. The extent to which costs are passed on depends on market conditions and the response of property owners and businesses.

5. How to judge the funding promises

When comparing the parties' plans, four questions help separate the headline promises from their likely practical effects.

• Is the revenue dedicated to a service? Labour explicitly earmarks its proposed capital gains tax revenue for health. Other parties have broader tax-and-spending programmes.
• Are the numbers independently costed? Party estimates of tax revenue and service costs should be distinguished from independent fiscal assessments.
• What happens if revenue falls short? Property-sale profits, wealth valuations and economic growth can change. A government may need to adjust spending, find other revenue or borrow more.
• What happens to services outside the headline commitment? More funding for healthcare, for example, does not by itself establish what will happen to education, policing, transport or public-service staffing.

Independent tax analysis from PwC highlights implementation complexity, valuation issues, possible changes in taxpayer behaviour and the importance of stable rules for investment. These considerations are relevant to assessing the feasibility of the proposals, not proof that any particular plan will succeed or fail. Tax Tips: 2026 General ElectionSummary of 2026 election tax policies

Bottom line

The broad choice is between funding services primarily within existing tax settings and spending limits, as National emphasises, and changing who pays tax to support different levels or types of public investment, as Labour, the Greens, Te Pāti Māori and Opportunity propose in different ways.

The practical answer to who pays more or less depends on your income, property, other assets, business interests and eligibility for government support. To establish the overall household effect, you need to compare the tax changes alongside the services and transfers you would receive—not just the headline tax rate.

For the full policy details, see the parties' official resources: National, Labour, Greens, Te Pāti Māori, Opportunity, ACT and New Zealand First.