No Stamp Duty in New Zealand
Good news: New Zealand abolished stamp duty in 1999. Unlike Australia (where you can pay tens of thousands in stamp duty) or the UK, NZ home buyers do NOT pay a state tax on property purchases.
But There ARE Other Costs
While you won't pay stamp duty, there are several costs first home buyers need to budget for. Expect to spend $2,000 — $5,000 in addition to your deposit.
1. Solicitor / Conveyancer Fees
- Cost: $1,000 — $2,500
- Your solicitor handles the sale and purchase agreement, checks the title, arranges KiwiSaver withdrawal, and manages settlement
- Some conveyancers charge a flat fee, others charge hourly
2. Building Report (Builder's Report)
- Cost: $500 — $900
- Essential for older homes. A registered builder inspects the property for structural issues, weathertightness, and maintenance problems
- Can save you from expensive surprises: well worth the cost
3. LIM Report (Land Information Memorandum)
- Cost: $250 — $400
- Obtained from the local council. Shows consents, property boundaries, zoning, flood/earthquake risks
- Your solicitor should review this before you go unconditional
4. Property Valuation
- Cost: $600 — $1,000
- Your bank may require a registered valuation to confirm the property is worth what you're paying
- Not always needed if the LVR is low and the CV (capital value) supports the price
5. Home Insurance
- Cost: $1,000 — $2,500 per year (often required to be paid upfront at settlement)
- Your bank will require home insurance before settlement
- Shop aroundremiums vary significantly between providers
6. Moving Costs
- Cost: $500 — $2,000
- Professional movers, truck hire, packing supplies
- Also budget for any immediate repairs, painting, or cleaning before move-in
7. Lender's Legal Fees and Bank Charges
- Cost: $200 — $500
- Some banks charge application fees, document fees, or legal administration fees
- Ask your lender for a full breakdown upfront
Other NZ-Specific Taxes to Know About
- Brightline test: If you sell within 2 — 10 years, you may pay income tax on capital gains: see our Brightline guide
- Rates (council tax): Ongoing annual cost: varies by property value and council. Typically $2,000 — $5,000/year
- No land tax: NZ has no broad-based land tax (unlike some other countries)
Summary Table: Buying Costs
| Cost Item | Typical Amount |
|---|---|
| Stamp Duty | $0 — NZ doesn't have it! |
| Solicitor | $1,000–$2,500 |
| Building Report | $500–$900 |
| LIM Report | $250–$400 |
| Valuation | $600–$1,000 |
| Home Insurance (first year) | $1,000–$2,500 |
| Moving Costs | $500–$2,000 |
| Bank Fees | $200–$500 |
2026 Update: Still No Stamp Duty — But No New Taxes Either
New Zealand continues to have no stamp duty, no land tax and no broad capital gains tax on residential property — a genuine advantage for first-home buyers compared with Australia or the UK. There were no changes in 2025 or 2026 that reintroduce purchase taxes, and none are currently legislated.
The main 'tax-like' rule remains the brightline test, which since 1 July 2024 applies only to properties sold within two years of purchase — and the main home exclusion protects owner-occupiers anyway. For a typical first-home buyer who lives in the property, purchase costs are one-off fees rather than taxes.
Budgeting the Hidden Costs at 2026 Prices
Using the national median of around $770,000–$787,000 (REINZ, late 2025 to mid-2026), a realistic additional budget is $2,000–$5,000 on top of your deposit: solicitor or conveyancer $1,000–$2,500; building report $500–$900; LIM report $250–$400; bank valuation $600–$1,000; lender application and legal fees $200–$500.
Home insurance is the biggest recurring item — typically $1,000–$2,500 a year, and the bank will require it from settlement. Moving costs add $500–$2,000, and it is wise to hold a buffer for immediate repairs, painting or whiteware.
A simple rule of thumb for 2026: on a median-priced home, allow about 1% of the purchase price for the one-off buying costs above, plus the first year of insurance and rates. On a $770,000 purchase that is roughly $7,700–$12,000 in total once you include insurance and moving — a meaningful figure that should sit in your cash budget before you go unconditional.
Other Taxes and Charges to Know
- Rates (council property tax): annual, roughly $2,500–$4,500 depending on city and property value — budget monthly.
- Brightline test: income tax on gains if you sell within 2 years (excluding your main home).
- GST: applies to new builds sold by developers (usually included in the price) and to building work.
- No CGT: long-term gains on your home and most investment properties are not taxed (except under brightline or trading rules).
The Full 2026 Buying Cost Schedule
New Zealand has no stamp duty, so the transaction taxes that dominate buying costs in Australia and the UK simply do not exist here. What fills that space is a stack of professional fees and reports. For a typical existing home purchase:
| Cost | Typical range | When payable |
|---|---|---|
| Deposit (not a cost, but payable) | 10% at unconditional; 20% funded at settlement | Unconditional date |
| Solicitor / conveyancer | $1,000–$2,500 | On settlement |
| Builder's report | $500–$900 | During the conditional period |
| LIM report | $250–$400 | During the conditional period |
| Registered valuation | $600–$1,000 | Before finance approval |
| Bank and registration fees | $400–$800 | At settlement |
| Moving costs | $500–$2,000 | Around settlement |
Total transaction costs excluding the deposit: roughly $3,250 to $7,600. Add a pre-purchase inspection or two on homes you did not win and a realistic budget is $4,000 to $9,000.
No Stamp Duty, No Land Tax — But These Do Apply
- Brightline test. Sell within two years of purchase (for property acquired from 1 July 2024) and the gain is taxable at your marginal rate. Ten years applies to property acquired between 27 March 2021 and 30 June 2024.
- GST. Existing homes are not subject to GST. On a new build, the developer accounts for GST and it is built into the price you pay — there is no separate charge to you.
- Council rates. Paid to the local council, commonly $3,000–$4,500 a year on a main-centre median home, and assessed on the property's rating value.
- Residential land withholding tax (RLWT). Applies when an overseas vendor sells residential property and does not meet the main home exclusion — a cost to the vendor, not to you, though it can affect a settlement date.
Ongoing Costs Most First Buyers Underestimate
The purchase cost schedule ends at settlement. The ownership schedule does not:
- Insurance: varies enormously by construction and location. A coastal or earthquake-exposed property can carry premiums several times those of an inland comparable.
- Maintenance: budget roughly 1% of the property's value a year — about $7,700 on a $770,000 home. Under-fund it and the first big repair becomes debt.
- Body corporate levies for units and apartments: $3,000–$8,000 a year, with the risk of a special levy for remedial work.
- Utilities, rates and internet: typically $5,000–$7,000 a year for a family home, before maintenance.
Put mortgage, rates, insurance and maintenance in a single spreadsheet before you commit. In 2026, the buyers who get into trouble are rarely the ones who could not raise the deposit; they are the ones who could raise it but could not carry the house.