CGT 6 year rule calculator (Australia)
The capital gains tax 6 year rule lets you treat a former home as your main residence for up to 6 years after you move out and rent it. Sell within that window, claim no other main residence, and the gain can be fully CGT-exempt.
Use the calculator below to estimate your exempt and assessable gain. It applies the 50% CGT discount and your marginal rate automatically.
Your property
Time in the property
From the day you bought (contract date) to the day you sell. Roughly 365 days per year.
You must have genuinely lived in it first for the 6-year rule to apply. If you never lived in it, enter 0 (the rule then does not apply).
The 6-year rule covers up to 2,191 days (6 years) of renting while you treat it as your main residence.
Your income
The assessable part of the gain stacks on top of this and is taxed at your marginal rate.
Your 6-year-rule estimate
Estimated CGT payable
$0
Fully exempt under the 6-year rule - the whole gain is covered.
Estimate only. This assumes you nominate no other property as your main residence during the absence and that you genuinely lived in this home first. Edge cases (overseas residency, a second main residence, partial-business use) change the result. Confirm with a registered tax agent.
Vestly keeps your ownership dates, cost base and main-residence periods current year-round, so this number is ready the day you decide to sell.
Start a 7-day free trial, $0 today. Then $9.90 per active property a month, GST included. Cancel anytime.
Last updated June 2026, based on ATO FY 2025-26 rules.
How the 6 year rule works
When you move out of your main residence and start renting it out, you can choose to keep treating it as your main residence for capital gains tax purposes. That treatment lasts for up to 6 years of absence. If you sell during those 6 years and you have not nominated another property as your main residence, the capital gain can be fully exempt from CGT.
The 6-year clock starts when you first rent the property out. It resets every time you move back in and genuinely re-establish the home as your main residence. Move out and rent again later, and a fresh 6-year period begins. There is no limit on how many separate 6-year absences you can string together this way.
The catch is that you can only treat one property as your main residence at a time. If you claim the 6-year exemption on a rented former home, you cannot also claim the main residence exemption on another home you own for that same period.
Source: ATO - Treating a former home as your main residence →
What happens past 6 years: partial exemption
If you rent the property for more than 6 continuous years without moving back in, you lose the full exemption but not all of it. The gain is apportioned using days:
Assessable gain = total gain × (non-exempt days / total ownership days)
The days you lived in the home plus the first 6 years (2,191 days) of your absence are exempt. Any days beyond that 6-year window are non-exempt and produce an assessable gain. You then apply the 50% CGT discount to the assessable portion if you owned the property for more than 12 months.
There is one more wrinkle. If the home was first rented out after 20 August 1996, the home first used to produce income rule applies. Your cost base is reset to the property's market value on the date you first rented it, not what you originally paid. That is why a valuation at the move-out date matters - it sets the starting point for any taxable gain.
Worked example: 5 years rented vs 8 years rented
Say an investor bought a home, lived in it for 2 years, then moved out and rented it. They bought for $620,000 and later sell for $900,000 - a gross gain of about $280,000 before costs.
Rented 5 years (within the window)
Sold 5 years after moving out - inside the 6-year limit. The whole absence is covered, so the gain is fully exempt. Estimated CGT: $0.
Rented 8 years (past the window)
Sold after 8 years of renting with no move-back. Only the first 6 years of absence are exempt; the final 2 years are assessable. A slice of the gain is taxed (after the 50% discount), so CGT is no longer zero.
Plug your own dates into the calculator above to see the dollar figures for your situation. The split between exempt and assessable depends on your exact ownership and rental days.
The numbers behind the estimate (FY 2025-26)
The assessable portion of your gain is added to your taxable income and taxed at your marginal rate. After the 50% discount on a >12-month hold, only half of the assessable gain is added.
| Figure | Value |
|---|---|
| Main residence absence limit | 6 years (2,191 days) |
| CGT discount (individuals, held > 12 months) | 50% |
| Reset trigger | Moving back in as main residence |
| Cost-base reset rule (first rented after 20 Aug 1996) | Market value at first-rented date |
FY 2025-26 resident marginal tax rates (the assessable gain is taxed at these)
| Taxable income | Marginal rate |
|---|---|
| $0 - $18,200 | Nil |
| $18,201 - $45,000 | 16% |
| $45,001 - $135,000 | 30% |
| $135,001 - $190,000 | 37% |
| $190,001 and over | 45% |
Rates exclude the 2% Medicare levy. The calculator stacks the discounted assessable gain on your other income and computes the extra tax at the bracket it lands in.
Common questions
What is the CGT 6 year rule in Australia?
The 6 year rule lets you keep treating a former home as your main residence for capital gains tax for up to 6 years after you move out and rent it. If you sell within that 6-year window and nominate no other main residence, the gain can be fully CGT-exempt. It only applies to a home you genuinely lived in first.
Can I use the 6 year rule twice?
Yes, indirectly. The 6-year period resets every time you move back in and re-establish the property as your main residence. Each fresh absence after moving back in starts a new 6-year clock. There is no lifetime limit on how many separate 6-year absences you can have, provided you genuinely re-occupy the home between them.
What happens after 6 years?
If you rent the property for more than 6 continuous years without moving back in, the exemption is no longer full. The gain is apportioned: the portion of ownership days that were exempt stays CGT-free, and the days beyond the 6-year window become assessable. You then apply the 50% discount to the assessable part if you held the property over 12 months.
Does the 6 year rule reset if I move back in?
Yes. Moving back in and genuinely re-establishing the home as your main residence resets the 6-year absence clock. If you move out and rent it again later, a brand-new 6-year exemption period begins. This is why owners who alternate between living in and renting a property can keep it exempt across many years.
Do I need a valuation for the 6 year rule?
Often yes. If you first rent out a home that was your main residence after 20 August 1996, the home-first-used-to-produce-income rule treats your cost base as the market value on the date you first rented it. A valuation at that date sets the starting point for any future gain, so it is worth getting one when you first move out.
Can I claim the 6 year rule if I never lived in the property?
No. The 6 year rule only applies to a dwelling that was genuinely your main residence first. If you bought an investment property and rented it from day one, it was never your main residence, so no main residence exemption and no 6-year absence rule apply. The whole gain is assessable, subject to the 50% discount.
Can I have the 6 year rule on more than one property at once?
No. You can only treat one dwelling as your main residence at any given time (limited overlap rules aside). If you claim the 6-year exemption on a rented former home, you cannot also claim the main residence exemption on another property you own for the same period. Choosing which property to cover is a key planning decision.
Does the 6 year rule apply if I move overseas?
It can, but foreign-residency rules are strict. Since changes from 2020, foreign residents at the time of sale generally cannot claim the main residence exemption at all, including the 6-year rule, unless a narrow life-events exception applies. If you become a non-resident before selling, the exemption may be lost entirely. Get advice before selling from overseas.
Is this 6 year rule calculator tax advice?
No. It is an estimate tool using FY 2025-26 ATO rates and the standard apportionment method. The 6-year rule has genuinely complex edge cases (overseas residency, multiple main residences, partial business use, deceased estates). Always confirm your situation with a registered tax agent before you sell or lodge.
Related calculators and guides
- CGT calculator (general) - full capital gains tax on any investment property sale
- Negative gearing calculator - the yearly tax saving while you rent the property out
- Investment property tax deductions - what you can claim by state while it is rented
- Property cashflow calculator - your weekly position before you decide to sell
This is general information, not tax advice. The 6-year rule has genuinely complex edge cases - overseas residency, holding two main residences, partial business use of the home, deceased estates, and the market-valuation reset can each change the outcome significantly. See a registered tax agent for your specific situation before you sell or lodge.
Keep your main-residence dates straight
The 6-year rule lives and dies on dates: when you moved in, when you first rented, when you moved back. Vestly keeps those dates, your cost base and your valuation on record for every property, so the exemption is easy to prove the day you sell. $9.90 per active property a month, GST included.
Start free trialStart a 7-day free trial, $0 today. Then $9.90 per active property a month, GST included. Cancel anytime.