Do I need to pay tax on an inheritance in New Zealand?

New Zealand does not have inheritance tax, estate duty or gift duty, so you generally do not pay tax simply on receiving an inheritance. However, tax considerations can still arise. If you inherit assets that generate income, such as rental property or shares that pay dividends, that income is taxable to you once you own it, under the Income Tax Act 2007. If you sell an inherited property, the bright-line test that can apply to residential property sales generally does not apply to a genuine inheritance, but rules can be technical, especially around timing and prior ownership. If the deceased had overseas assets or you have foreign tax obligations, other countries' rules may still apply. It is worth getting advice from an accountant about your specific inheritance, particularly for shares, overseas assets or a business.