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2025-26 Kilometre Rates

Greg Millar
Published on

Kilometre rates for the 2025-2026 income year

The 2025 - 2026 kilometre rates have been published and are shown in the table below.

Vehicle rates 2025-2026

 Vehicle type     Tier 1 rate per km     Tier 2 rate per km
Petrol $1.20 37 cents
Diesel $1.30 38 cents
Petrol hybrid 90 cents 24 cents
Electric EV $1.22 23 cents

The rates and guidance to the use of kilometre rates can also be found in the IRD's Operational statement:

OS 19/04 (KM 2026) The Income Tax (Kilometre Rates for the Business Use of Vehicles for the 2025-26 income year) Instrument 2026 (taxtechnical.ird.govt.nz)

Unsure how the new kilometre rates apply to you or your business? Contact Alliott NZ for tailored advice on claiming vehicle expenses correctly, keeping accurate records and ensuring you maximise your eligible tax deductions.

Source: Inland Revenue. (5 June 2026) Kilometre rates for the 2025–2026 income year

Topics: deductions expenditure fuel Inland Revenue Department small business tax rate vehicle

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