The IRD has updated vehicle kilometre rates for the 2024–2025 year, reflecting rising running costs like fuel. For the first time, different Tier 1 rates apply depending on your vehicle type (Petrol, Diesel, Hybrid, or Electric) due to varying running costs.
2024–2025 Kilometre Rates
|
Vehicle Type
|
Tier 1 (First 14,000 km)
|
Tier 2 (Over 14,000 km)
|
|
Petrol
|
$1.17
|
$0.37
|
|
Diesel
|
$1.26
|
$0.35
|
|
Petrol Hybrid
|
$0.86
|
$0.21
|
|
Electric
|
$1.08
|
$0.19
|
- · Tier 1 covers both fixed and running costs.
- · Tier 2 covers running costs only, for travel over 14,000 km.
How to Use the Rates
Businesses: You can use these rates to claim expenses on vehicles used for both business and private travel. You’ll need to keep records of business use and can either:
- · Use the kilometre rates, or
- · Claim actual vehicle costs (cost method).
Employers: These rates may also be used to reimburse employees for using their own vehicles for work travel. The IRD accepts these as a reasonable estimate, though they may not suit all situations.
Get in touch: If you have any questions or need assistance, our team is happy to help.
The DCH Team
