IRD rate guide
IRD Kilometre Rate 2025-26
The 2025-26 IRD kilometre rates cover four vehicle types with tier 1 (first 14,000 km) and tier 2 (after 14,000 km) rates for business use of personal vehicles.
This 2025-26 IRD kilometre rate guide covers petrol, diesel, hybrid, and electric vehicle rates for New Zealand business use. The key distinction is the rate split at 14,000 km of total travel — tier 1 rates cover fixed and running costs, while tier 2 rates cover running costs only.
At a glance
Country: New Zealand
Tax year: 2025-26
Scenarios covered: 4
Primary rates
Business / Petrol: 120 cents per kilometre -> 37 cents per kilometre
Business / Diesel: 130 cents per kilometre -> 38 cents per kilometre
Business / Hybrid: 90 cents per kilometre -> 24 cents per kilometre
Official sources
2025-26 IRD mileage rates
Business / Petrol
First 14,000 km (up to 14,000 km) · 120 cents per kilometre; After 14,000 km · 37 cents per kilometre
Source: IRD kilometre rates 2025-26Business / Diesel
First 14,000 km (up to 14,000 km) · 130 cents per kilometre; After 14,000 km · 38 cents per kilometre
Source: IRD kilometre rates 2025-26Business / Hybrid
First 14,000 km (up to 14,000 km) · 90 cents per kilometre; After 14,000 km · 24 cents per kilometre
Source: IRD kilometre rates 2025-26Business / Electric
First 14,000 km (up to 14,000 km) · 122 cents per kilometre; After 14,000 km · 23 cents per kilometre
Source: IRD kilometre rates 2025-26Year-over-year comparison
Business / Petrol
First 14,000 km: up 3 cents per kilometre; After 14,000 km: unchanged
Business / Diesel
First 14,000 km: up 4 cents per kilometre; After 14,000 km: up 3 cents per kilometre
Business / Hybrid
First 14,000 km: up 4 cents per kilometre; After 14,000 km: up 3 cents per kilometre
Business / Electric
First 14,000 km: up 14.0 cents per kilometre; After 14,000 km: up 4 cents per kilometre
Use this rate for your next step
- Choose the correct vehicle type (petrol, diesel, hybrid, or electric) before quoting the rate.
- Apply tier 1 rates to the first 14,000 km of total vehicle travel, then tier 2 for the remainder.
- Multiply by your business-use percentage from a logbook to calculate the deductible amount.
Practical notes
IRD kilometre rates are reviewed annually and published in the Tax Information Bulletin.
The 14,000 km threshold applies to total vehicle distance, not just business kilometres.
Rate guide FAQ
What does the 2025-26 rate cover on this page?
This page covers the Business / Petrol, Business / Diesel, Business / Hybrid, Business / Electric for New Zealand, based on the IRD source linked on this page.
Should I use the rate guide or the calculator?
Use the rate guide when you want the published reference rate and source context. Use the calculator when you want a total estimate based on distance, year, and scenario selection.
What records should I keep with the 2025-26 rate?
Keep trip date, destination, purpose, and distance records, plus any policy or filing notes that explain why this rate applies to the claim.
How does 2025-26 compare with 2024-25?
Use the year-over-year comparison section on this page to see whether the rate changed from 2024-25 and whether the tier structure stayed the same.