Kilometre rates for the business use of vehicles for the 2023 income year
The table of rates for the 2022/2023 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 2022/2023 income year for business motor vehicle expenditure claims. The tier one rates reflect an overall increase in vehicle running costs largely due to fuel costs.
The table of rates for the 2023 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 | 95 cents | 34 cents |
| Petrol Hybrid | 95 cents | 20 cents |
| Electric | 95 cents | 11 cents |
These operational statements provide further information on the use of the kilometre rates:
- OS 19/04A: Commissioner's statement on using a kilometre rate for business running of a motor vehicle - deductions
- OS 19/04B: Commissioner's statement on using a kilometre rate for employee reimbursement of a motor vehicle