Kilometre rates for the 2020-2021 income year

Income tax Dates

JAN 15

AIM instalments are due if you have a March balance date.
JAN 15

Provisional tax payments are due if you have a March balance date and use the standard, estimation or ratio options.
JAN 28

AIM instalments are due if you file GST monthly and have a March balance date.

All Income tax dates

Use the following rates to calculate the allowable expense for using your vehicle for business purposes for the 2020-2021 income year.

Tier 1 rates have reduced to reflect lower fuel, interest and maintenance costs.

Using the Tier 1 and Tier 2 rates

The Tier 1 rate is a combination of your vehicle's fixed and running costs. Use it for the business portion of the first 14,000 kilometres travelled by the vehicle in a year. This includes private use travel.

The Tier 2 rate is for running costs only. Use it for the business portion of any travel over 14,000 kilometres in a year.

Vehicle type	Tier 1 rate per km	Tier 2 rate per km
Petrol or diesel	79 cents	27 cents
Petrol hybrid	79 cents	16 cents
Electric	79 cents	9 cents

Learn more about using kilometre rates

Claiming vehicle expenses

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

Last updated: 07 Jun 2021

Ngā pāpātanga ā-kiromita mō 2020-2021 tae noa mai ki tēnei tau Kilometre rates for the 2020-2021 income year

Income tax Dates

Using the Tier 1 and Tier 2 rates

Learn more about using kilometre rates

Kilometre rates for the 2020-2021 income year