Learn about driver taxes

New Zealand · Tax basics

New Zealand: mileage, vehicle expenses and tax records

Kilometre rates or actual costs

How the local rules work

Business vehicle expenses can be worked out using the applicable kilometre-rate method or actual costs. Mixed private and business use needs a business-use calculation.

What to keep

Keep business kilometres, total distance and vehicle details. Preserve receipts when using actual costs and check the logbook requirements.

What the odometer message means

The app needs total vehicle distance, including personal driving, to estimate business use. Enter beginning and ending odometer readings for the same vehicle and reporting period. Missing total distance means the percentage is incomplete; it does not erase your recorded business trips.

Example · same vehicle, same period
Business distance12,000
Total distance15,000
Business use80%

80% business · 20% personal

12,000 ÷ 15,000 × 100 = 80%. Use miles or kilometres consistently. This is a usage ratio, not automatic permission to deduct 80% of every cost.

Avoid this mistake

Rates depend on the income year, vehicle type and tier. A flat rate entered in an app may not represent the correct claim.

Prepare your records in Free Mile Tracker

  1. Select your country and the correct reporting period.
  2. Review each trip and distinguish business from personal driving.
  3. Add dated odometer readings and keep supporting expense documents.
  4. Export your records and compare them with platform statements before filing.
A business-use percentage helps organize mixed-use records. Whether it can be used for a deduction depends on New Zealand’s rules and your filing method.

Official guidance

Inland Revenue: source for this guide

Source checked October 8, 2026. Confirm the applicable tax year on the official site before filing.