IRD Mileage Rates for NZ Tradies (2024–25)
If you use your personal vehicle for business, you can claim a tax deduction based on the IRD's kilometre rates.
2024–25 IRD Kilometre Rates
| Vehicle type | First 14,000 km | Over 14,000 km |
|---|---|---|
| Petrol or diesel | $0.95/km | $0.35/km |
| Petrol hybrid | $0.26/km | $0.19/km |
| Electric | $0.09/km | $0.09/km |
Rates updated August 2024. Always check ird.govt.nz for current rates.
What Counts as Business Travel?
- Travel between job sites
- Travel from your office or yard to job sites
- Trips to suppliers to pick up materials
- Client meetings
Does NOT include: travel between home and your regular place of business (commuting).
If you work from home and your home is your base, travel from home to client sites is deductible.
How to Claim Vehicle Expenses
Option 1: IRD kilometre rate (this calculator) - Record every business trip (date, km, purpose) - Multiply by the IRD rate - No GST to claim, but simpler record-keeping
Option 2: Actual cost method - Track all actual vehicle expenses (fuel, insurance, servicing, registration, depreciation) - Calculate the business use percentage - Claim that percentage of actual costs - More complex but often higher deduction for high-mileage tradies
Keeping a Mileage Log
IRD can ask for records any time. Keep a logbook with: - Date of each trip - Start and end odometer readings (or km for the trip) - Purpose of the trip - Client or job name
Apps like Tradify include built-in mileage tracking. Alternatively, a simple spreadsheet works fine.