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Excel workbook (.xlsx) with formulas that total themselves. Opens in Excel, Google Sheets, or Numbers.
Download the NZ mileage log (Excel)New Zealand’s kilometre rate method lets a business claim vehicle costs without tracking every receipt, using rates Inland Revenue sets each year. The catch that surprises people is that the rates are tiered by total distance and split by fuel type, so the right rate depends on both how far the vehicle has travelled and what it runs on. This template is pre-filled with the 2025-26 rates and structured so you can apply the correct tier and fuel rate to each trip.
The download records the date, start and end point, business purpose, kilometres, the tier, the rate, and the amount, with a worked total and a note carrying the full rate table.
The 2025-26 IRD rates
Inland Revenue’s rates for the 2025-26 income year are split into two tiers and four fuel types:
| Vehicle type | Tier 1 (first 14,000 km) | Tier 2 (above 14,000 km) |
|---|---|---|
| Petrol | $1.20/km | 37c/km |
| Diesel | $1.30/km | 38c/km |
| Petrol hybrid | $0.90/km | 24c/km |
| Electric | $1.22/km | 23c/km |
Tier 1 combines the vehicle’s fixed and running costs and applies to the business portion of the first 14,000 km of total travel. Tier 2 covers running costs only and applies to the business portion once total travel exceeds 14,000 km. The 14,000 km threshold counts all travel, business and private together.
Inland Revenue updated these rates with effect from June 2026, and the Tier 1 figures rose to reflect higher overall running costs in the year. The rates are designed primarily as a method for businesses to calculate a deduction for the year just ended. Where an employer uses them instead as a reasonable estimate for reimbursing an employee in the current year, Inland Revenue has signalled it may issue further guidance for the 2027 income year because of fuel-price movements, so confirm the rate is still reasonable at the time you reimburse.
Match the rate to the vehicle
Because the rates differ by fuel type, the first thing to set in the template is the rate for your vehicle. A diesel ute is on the diesel line, a plug-in hybrid on the petrol-hybrid line, an EV on the electric line. The template defaults to petrol; change the rate column to match. Getting this wrong is the most common error, because the diesel Tier 1 rate is over 40 percent higher than the hybrid one.
How to use the template
- Record each business journey as it happens: date, where and why, and the kilometres.
- Set the rate to match your vehicle’s fuel type, using the Tier 1 column while the vehicle’s total travel is under 14,000 km.
- Once total travel for the year passes 14,000 km, switch the business portion to the Tier 2 rate.
- Total the business kilometres and the amount, and keep the log with your records for seven years.
Common mistakes
- Using the petrol rate for a diesel or hybrid vehicle. The rate must match the fuel type.
- Treating the 14,000 km threshold as business-only. It is total travel, business and private combined.
- Forgetting to drop to Tier 2. Above 14,000 km of total travel, the business portion is claimed at the lower running-cost rate.
- Claiming kilometre rates and actual costs together. Choose one method per vehicle for the year.
When the log should keep itself
The kilometre rate method still relies on an accurate distance record. Tools that capture trips remove the guesswork:
- Driversnote logs trips automatically and applies the IRD rates.
- ExpenseFlow captures vehicle running costs alongside the receipts and bills it processes, helps apply the right tier and fuel rate, and posts the claim into Xero or QuickBooks Online with the correct GST treatment.
- Logbook me records trips by GPS for drivers who want it hands-off.
Start with the template, log every business trip, and let captured data handle the totals as volume grows.