IRD Depreciation Rate Finder NZ 2025-26

How to use this tool

Type any asset name or keyword into the search box. Results update as you type, matching against asset names and common search terms. The table shows the DV rate (applied to the declining book value each year) and the SL rate (applied to the original cost each year). Click any row to send that asset's DV rate straight into the depreciation calculator below, or type your own rate.

DV versus SL: which should I use?

The diminishing value method gives you larger deductions in the earlier years because the rate is applied to the remaining book value, which shrinks each year. The straight-line method spreads equal deductions across each year because the rate is applied to the original cost. Most New Zealand businesses choose DV because the earlier tax deductions improve cash flow. You can switch from DV to SL at any time, but once you start on SL you cannot switch back to DV for that asset.

Key rules to know

• Low-value asset threshold. Assets costing $1,000 or less (excluding GST, for GST-registered businesses) can be written off in full in the year of purchase rather than depreciated over time.
• Buildings. Residential rental buildings have had a 0% depreciation rate since the 2011 income year. Commercial buildings lost depreciation again from 1 April 2024. Fit-out within a building and chattels within a rental property remain depreciable at the rates shown in the search results above.
• Investment Boost scheme. From 22 May 2025, businesses can claim an additional 20% upfront deduction on new qualifying assets in the year of purchase, on top of the normal first-year depreciation. The standard DV or SL rate then applies to the remaining value from year two onwards.
• Half-year rule (SL method). In the first and last year of ownership, only half the annual SL rate applies if the asset is not held for the full year.
• Special rate applications. If no published rate matches your asset, you can apply to IRD for a special depreciation rate using form IR260B.

Worked example

About the IRD depreciation schedule

Inland Revenue sets depreciation rates by estimating the useful life of each asset type and applying a formula. The DV rate is approximately 1.5 divided by the useful life (in years), and the SL rate is 1 divided by the useful life. Rates are set out in Determinations starting with DEP1 (the general schedule) and extending to special determinations for specific industries or asset types, such as DEP80 (residential rental property chattels) and DEP87 (tablets and smartphones). The rates in this tool are sourced from those determinations as at the 2025-26 income year.

Frequently asked questions

What is the difference between DV and SL depreciation methods in NZ?

DV (Diminishing Value) applies the percentage to the remaining book value each year, giving larger deductions early on. SL (Straight Line) applies the percentage to the original cost, giving equal deductions each year. Most businesses choose DV for a faster initial tax deduction.

Can I change depreciation method once I have started?

Yes, you can switch from DV to SL at any time, but you cannot switch from SL to DV. The switch is made in the year you change, and you carry on applying the new method to the remaining book value.

Where does IRD publish the full depreciation rate schedule?

IRD publishes the General Depreciation Rates schedule at ird.govt.nz. The schedule is in Determination DEP1 through DEP100 and beyond, and is updated periodically when new asset types or industries are added.

Official sources

• Inland Revenue: Depreciation rates
• Inland Revenue: Low-value assets
• Inland Revenue: Investment Boost scheme

Related calculators

• Depreciation Calculator
• Chattel Depreciation Calculator
• Effective Tax Rate Calculator
• Income Tax Calculator