Reimbursement for using a private vehicle for business purposes
In New Zealand, the Inland Revenue Department (IRD) publishes kilometre rates that can be used for reimbursing or deducting the business use of private vehicles.
The rates are split into Tier 1 (covering both fixed and running costs) for the first 14 000 km in a tax year, and Tier 2 (covering running costs only) for business travel beyond that distance.
IRD kilometre rates by income year
| Income year | Vehicle type | Tier 1 rate per km | Tier 2 rate per km | Notes |
|---|---|---|---|---|
| 2024 – 2025 (from 1 Apr 2024) | Petrol | NZ$ 1.17 | NZ$ 0.37 | Official IRD rate |
| Diesel | NZ$ 1.26 | NZ$ 0.35 | Official IRD rate | |
| Petrol Hybrid | NZ$ 0.86 | NZ$ 0.21 | Official IRD rate | |
| Electric | NZ$ 1.08 | NZ$ 0.19 | Official IRD rate | |
| 2023 – 2024 (from 1 Apr 2023) | Petrol | NZ$ 0.95 | NZ$ 0.34 | Official IRD rate |
| Diesel | NZ$ 0.96 | NZ$ 0.31 | Official IRD rate | |
| Petrol Hybrid | NZ$ 0.95 | NZ$ 0.20 | Official IRD rate | |
| Electric | NZ$ 0.76 | NZ$ 0.15 | Official IRD rate |
These rates are set by the Inland Revenue Department (IRD) and are reviewed annually, usually in May–June for the new income year.
Tier 1 applies to the first 14 000 km each year (including both business and private use), while Tier 2 applies to business kilometres beyond that.
💡 Motolog automatically applies the correct IRD kilometre rate for your vehicle type and distance, generating compliant trip-log reports ready for accounting or tax purposes.
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