2025 Mileage Reimbursement Rates
The IRD has released the latest rates for motor vehicle expenditure claims
The rates set out below apply for the 2024-2025 income year for business motor vehicle expenditure claims. The Tier 1 and Tier 2 rates reflect an overall increase in vehicle running costs in the income year, largely due to fuel costs.
The rates are $1.17 for petrol, $1.26 for diesel, $0.86 for hybrid and $1.08 forr electric vehicles for up to 14,000 km.
After 14,000 km, the rates are $0.37 for petrol, $0.35 diesel, $0.21 for hybrid vehicles, and $0.19 for electric vehicles.
It is accepted that these rates 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 in a current income year (1 April onwards)
