New Zealand’s Green Party has proposed a major tax overhaul for 2026, including a 2.5% tax on wealth above NZD 10 million, a higher corporate tax rate for large companies, and a new top income tax rate of 45%, while providing tax cuts for most workers and generating an estimated NZD 5.14 billion in net revenue.
The Green Party of New Zealand has released its 2026 tax policy, “A tax system for all of us,” proposing a broad restructuring of the country’s tax framework aimed at reducing wealth inequality, increasing contributions from large corporations and high-net-worth individuals, and lowering income tax for most workers.
According to the party, the package would provide tax relief to 96% of salaried and waged earners while generating an estimated net fiscal gain of NZD 5.14 billion in its first year of implementation.
Wealth taxes to address inequality
A central feature of the proposal is the introduction of new taxes on accumulated wealth and large asset transfers.
The plan would impose a 2.5% annual Super-Rich Tax on the net assets of individuals with wealth exceeding NZD 10 million, or NZD 20 million for couples. The tax would apply to assets such as property, shares and bonds, while exempting family homes, Māori land and charitable assets.
The Green Party also proposes a Capital Acquisitions Tax of 33% on inheritances and gifts worth more than NZD 1 million. Family homes and family farms would be excluded from the measure. The party says the tax is intended to reduce the concentration of wealth across generations.
The Super-Rich Tax is projected to raise NZD 3.76 billion in the 2027/28 fiscal year, while the Capital Acquisitions Tax is expected to generate NZD 953 million.
Higher taxes for large corporations and banks
The policy includes measures aimed at increasing tax contributions from large businesses, multinational corporations and major financial institutions.
Under the proposal, the corporate tax rate would rise from 28% to 33% for companies with annual turnover exceeding NZD 30 million. The higher rate would apply to approximately 0.7% of companies, while small and medium-sized enterprises would continue to pay the existing 28% rate.
The Green Party also proposes a 0.06% annual levy on the liabilities of banks holding more than NZD 100 billion in liabilities. The measure would primarily affect the country’s four largest Australian-owned banks: ANZ, ASB, BNZ and Westpac.
In addition, the party would introduce a 5% withholding tax on profits that large technology companies transfer offshore through service or licence fee arrangements. The proposal specifically targets multinational firms such as Google, Microsoft and Amazon.
The corporate tax increase is forecast to generate NZD 1.37 billion in additional revenue during 2027/28.
Property tax changes
The policy seeks to reverse several tax settings introduced for residential property investors.
The Green Party would reinstate restrictions on interest deductibility, reversing recent changes that allow landlords to deduct mortgage interest from taxable profits.
The party also proposes restoring the bright-line test period to 10 years from the current two years. Under the proposal, income tax would apply to gains from residential investment properties sold within 10 years of acquisition.
According to the party, these measures would remove tax advantages enjoyed by property investors and speculators.
Personal income tax reset
The package includes significant changes to personal income tax settings. The first NZD 10,000 of annual income would become tax-free for all taxpayers.
A new 45% top income tax rate would apply to earnings above NZD 160,000 annually.
The Green Party says everyone earning less than NZD 160,000 per year would receive a tax reduction, with lower-income households benefiting the most in proportional terms.
However, the income tax changes are expected to reduce government revenue by NZD 2.33 billion in 2027/28.
Fiscal impact
Based on the Green Party’s modelling, the package would generate substantial additional revenue despite the cost of income tax reductions.
The largest revenue sources would be the Super-Rich Tax (NZD 3.76 billion), higher taxes on large corporations (NZD 1.37 billion) and the Capital Acquisitions Tax (NZD 953 million).
After accounting for the NZD 2.33 billion cost of revised income tax settings, the party estimates the overall package would deliver a net fiscal gain of NZD 5.14 billion in its first year, providing additional funding for public services and social programmes.
