Kilometre rates for the business use of vehicles for the 2021 income year
The table of rates for the 2020/2021 income year for motor vehicle expenditure claims.
In accordance with s DE 12(4) the Commissioner is required to set and publish kilometre rates. These rates can be used to calculate expenditure claims for the business use of a motor vehicle. They may also be used by employers as a reasonable estimate for reimbursement of expenditure incurred by employees for the use of a private motor vehicle for business purposes. More information is available on the Inland Revenue website www.ird.govt.nz/ (search keywords “claiming vehicle expenses”).
The rates set out below apply for the 2020/2021 income year for business motor vehicle expenditure claims. The tier one rates reflect a decrease in overall vehicle costs largely due to lower fuel costs in response to reduced global demand (Covid-19 pandemic) and reduced interest and maintenance costs.
The table of rates for the 2021 income year:
The Tier Two rate is for running costs only. Use the Tier Two rate for the business portion of any travel over 14,000 kms in a year.
|Vehicle type||Tier One rate||Tier Two rate|
|Petrol or diesel||79 cents||27 cents|
|Petrol hybrid||79 cents||16 cents|
|Electric||79 cents||9 cents|
Operational Statements OS 19/04A: Commissioner's statement on using a kilometre rate for business running of a motor vehicle - deductions and OS 19/04B: Commissioner's statement on using a kilometre rate for employee reimbursement of a motor vehicle provide further information on the use of the kilometre rates.