The rates set out below apply for the 2025-2026 income year for business motor vehicle expenditure claims. The Tier 1 rates reflect an overall increase in vehicle running costs in the income year.
The table of rates for the 2025-2026 income year
The Tier 1 rate is a combination of your vehicle’s fixed and running costs. Use it for the business portion of the first 14,000 kilometres travelled by the vehicle in an income year. This includes private use travel.
The Tier 1 rate reflects vehicle fixed ownership costs (Annual relicensing, insurance, interest on outlay, depreciation etc) and vehicle running costs (fuel, road user charges when applicable, tyres and vehicle maintenance costs).
The Tier 2 rate is for running costs only. Use it for the business portion when overall vehicle travel (both business and private) exceeds 14,000 kilometres in an income year.
Source: IRD – https://www.taxtechnical.ird.govt.nz/operational-statements/2026/os-19-04-km-2026
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