Wealth tax 2025 is no longer a fringe talking point—it’s a headline item in Wellington, Brussels, and beyond. If you’re wondering whether the proposed wealth tax New Zealand could touch your rental portfolio, family trust, or KiwiSaver pot, you’re in the right place. This guide strips away the political noise and shows, in dollars and cents, how a wealth tax 2025 might be calculated, who would cross the $2 million threshold, and what planning moves still make sense before any levy lands.
In the next few minutes we’ll unpack the Greens wealth-tax proposal 2025, compare it with European net-wealth levy experiments, and weigh its impact against the familiar capital-gains vs wealth tax debate. You’ll get practical, step-by-step actions to protect liquidity and structure assets—without resorting to exotic schemes that keep lawyers rich and you awake at night. Ready to see how the wealth tax 2025 could reshape your balance sheet and what you can do today? Let’s dive in.
What is a wealth tax? Definition & intent
A wealth tax is an annual levy on your net assets—the total value of what you own, minus what you owe. Unlike income tax, it targets your accumulated wealth: property, shares, cash, vehicles, art, crypto, and more. The idea? Tax idle capital and rebalance inequality.
Commonly taxed assets in a wealth tax:
- Residential or investment properties
- Business equity or shares
- Superannuation funds (in some models)
- Trust assets, jewellery, fine art or collectibles
- Cryptocurrencies and offshore holdings
Most proposed models include a threshold to exempt the average Kiwi. But if your assets total over $2 million, it’s time to pay attention. For those in property or business, start assessing where your value sits—our guide on the benefits of investing in residential property may help you benchmark.
Wealth tax new zealand: Greens proposal 2025 in focus
In May 2025, the Green Party reignited debate with a detailed wealth tax New Zealand plan. It aims to tax the ultra-wealthy—those holding over $2 million in net assets—with progressively higher rates.
Thresholds & rates
| Net wealth (NZD) | Proposed annual tax rate |
|---|---|
| $2 million – $8 million | 1.5 % |
| Over $8 million | 2.5 % |
A couple’s threshold is doubled, and the first $2 million remains exempt. For example, a single person with $3 million in net wealth would pay 1.5 % on $1 million = $15,000/year.
Exemptions: main home, kiwisaver?
- Main home is exempt up to a capped value (e.g., $500,000–$1M).
- KiwiSaver may be excluded in initial drafts—but not universally.
- Family trusts: If you’re using a trust to hold property or shares, they may still count. Our guide on setting up a family trust account explains how structure affects exposure.
These are draft policies. Whether Labour or National picks up similar models depends on public appetite and economic necessity.
International net-wealth levy snapshots
New Zealand isn’t alone. Several countries in Europe have tried or are revisiting wealth tax models—some with success, others with repeal due to capital flight.
France, Norway, Spain at a glance
- France: Repealed in 2018. Former rate was 0.5–1.5 % above €1.3M net wealth.
- Norway: Still active. Rate of 1.1 % above ~$220,000 USD.
- Spain: Reintroduced in 2022 with a 0.2–3.5 % progressive scale.
These systems often struggle with enforcement and valuation. But they offer blueprints—and warnings—for what NZ might adopt.
For localised advice tailored to NZ’s model, see our accounting services NZ page and request a one-on-one scenario review.
Capital-gains vs wealth tax: why it matters
Many Kiwis assume they’re safe because NZ has no formal capital gains tax (CGT)—but a wealth tax is different. It taxes what you have, not just what you sell.
Double-tax risk & credit rules
- Capital gains tax hits realised profits.
- Wealth tax hits unrealised net worth—even if you’re cash poor.
- Overlap risk: Some countries offer CGT credits if wealth tax is also paid. No such mechanisms yet proposed in NZ.
Owning growth assets like shares or rental property? You could be hit twice—once annually via net-wealth levy, then again upon sale. If you’re using cloud tools to value portfolios, our review of the best cloud accounting software for medium-sized businesses covers features that simplify tracking unrealised gains.
Planning strategies before a wealth tax arrives
Whether or not legislation passes, now is the time to prepare. With a $2M threshold on the table, many middle-income Kiwis with property or business equity may be swept in.
Restructuring ownership
- Use family trusts or partnership models (with care).
- Spread ownership across family members (where legitimate).
- Convert passive assets into business investments with better treatment.
Our article on setting up a family trust account explains how trusts can help you stay under thresholds without risky avoidance.
Liquidity planning for lumpy assets
Got $3M in property but $3K in the bank? A wealth tax could squeeze you. Prepare by:
- Holding buffer cash for annual levies
- Diversifying into liquid assets (shares, term deposits)
- Avoiding excessive leverage that inflates apparent net wealth
For tailored forecasts or scenario testing, reach out via our contact page.
Bonus for wealth tax
Want to know if you’re likely to be affected by a future wealth tax? Don’t guess—run the numbers.
We’ve created a free, professional-grade Wealth Tax Asset Tracker to help you get clear on your net worth. It’s a fully editable Excel spreadsheet with:
- Pre-filled asset categories: property, shares, KiwiSaver, trusts, crypto, and more
- Space to record ownership %, purchase value, current value, and liabilities
- Auto-calculated net values and total net wealth
- A polished layout with the B&H Accounting logo
👉 Download our Wealth Tax Asset Tracker (Excel) and get a clear view of where you stand—before new rules come into play.
Need help reviewing your figures or planning ahead? Contact us for a free 15-minute call with a BH Accounting adviser.
Conclusion
A potential wealth tax 2025 is no longer a theory—it’s a developing policy with serious implications. Whether you’re over or under the $2M threshold, how you hold assets now will shape your tax bill later. Understand the mechanics, watch the exemptions, and act early. Our team is here to help you run the numbers and make calm, compliant decisions for the future.
FAQ about wealth tax
Who would pay under a $2m threshold?
Only individuals or households with net assets above $2 million—after debt—is affected under the current Green proposal.
How is debt deducted from net wealth?
You subtract all mortgages and personal loans from total asset value. Only the net amount is assessed for tax.
Does kiwisaver count toward the threshold?
Some drafts propose excluding it; others do not. It’s best to assume KiwiSaver might count until final rules are set.
Can trusts avoid the levy?
No. Trust-owned assets are still taxable if you are a beneficiary or settlor. See our trust setup guide for structure insights.
When could a wealth tax start in nz?
Earliest would be mid to late 2026—after consultation, drafting, and legislation. But pre-emptive structuring should happen now.