Verified for 2026 Tax Year

GST on Residential Rent in NZ

A comprehensive guide for New Zealand landlords. Understand why residential rent is exempt from GST, and the critical rules for Airbnb and short-term accommodation.

The 10-Second Rule

Long-term residential rent is an **exempt supply**. You do not charge GST on the rent you collect, and critically, you **cannot** claim back GST on any of your landlord expenses (like rates, insurance, or property management fees).

1. What is an Exempt Supply?

Inland Revenue has explicitly classified long-term residential accommodation as an exempt supply. This was designed to prevent the everyday cost of housing from being artificially inflated by a 15% tax.

What This Means for Landlords:

✗ You cannot register for GST if your only business is residential property investment.
✗ You cannot claim input tax deductions on property purchases.
✗ You cannot claim GST on maintenance, property management, or legal fees.

2. The Exception: Short-Term Accommodation

The exemption only applies to people using the property as their principal place of residence. If you rent out your property for short-term stays (like Motels, Airbnb, or Bookabach), it is classified as commercial accommodation, which is a fully taxable activity.

Under $60,000 / Year

If your gross short-term rental income is under $60k a year, you do not *have* to register for GST (though you can voluntarily).

Over $60,000 / Year

If you earn over $60k, registration is mandatory. You must charge 15% GST on the nightly rate, but you can claim GST on expenses.

3. The 2024 "App Tax" Rules (Platform Economy)

As of April 2024, New Zealand introduced new rules for digital platforms like Airbnb and Booking.com.

How Platforms Handle GST Now:

Even if you (the host) are not GST registered because you earn under $60k, the platform itself must now collect and return 15% GST on the nightly rate directly to the IRD.

However, to compensate you, the platform will pass an 8.5% "flat-rate credit" back to you. This is meant to approximate the GST you would have been able to claim on expenses if you were registered.

Income Tax & Bright-line Test:

Remember that while GST might not apply to long-term rent, Income Tax absolutely does. All rental profits must be declared. Furthermore, selling an investment property may trigger the Bright-line test, taxing any capital gains.

Frequently Asked Questions

Do I have to charge GST on residential rent in NZ?

No. Long-term residential rent is an 'exempt supply' in New Zealand. You cannot charge GST on rent, and you cannot claim GST on your property expenses.

Can I claim GST on property management fees?

No. Because the rent you collect is exempt, all related expenses (management fees, rates, repairs) cannot have their GST claimed back.

Is Airbnb subject to GST?

Yes, short-term accommodation (like Airbnb or Motels) is a taxable supply. If your gross rental income from short-term stays exceeds $60,000 in a 12-month period, you must register for GST.

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