The leader of the One Cook Islands party, Teina Bishop, says the election results show people were unhappy with the government's tax reforms.
An early count shows the Democratic Party currently has eleven seats while the Cook Islands Party has won ten.
The One Cook Islands party has two seats and one seat is tied.
Its leader, Teina Bishop, says the results are proof the government did not handle tax reform well.
"It gives out a great signal about the tax reform that we did, that not many people were happy with it. I think the PR wasn't done properly, there wasn't enough dialogue. Any tax issue in an election year is not a good political move, of course the situation with the taxing of the old people, the grey power influence."
Teina Bishop says it is too early to meet with either party to discuss possible coalitions.