This calculator works out a business mileage claim or vehicle reimbursement in New Zealand using the Inland Revenue kilometre rates, the simplest way for the self-employed, businesses and employers to put a dollar figure on work-related driving. Rather than tracking every receipt for fuel, servicing and depreciation, IRD lets you claim a set rate per kilometre travelled for business. The rates come in two tiers: a higher tier one rate covers the first fourteen thousand kilometres of total travel in the year, combining business and private use, and a lower tier two rate applies to business kilometres beyond that point, reflecting that the fixed costs of owning the vehicle are already covered. You enter your business kilometres for the year and the current tier one and tier two rates, along with the tier one cap, and the calculator splits your travel across the tiers and totals your reimbursement, showing the amount claimed at each rate. Use it to estimate what you can claim, to reimburse staff tax-free for work travel, or to compare against keeping actual cost records. You will need a logbook of your business kilometres and your total kilometres for the year. The IRD rates change annually, so enter the current figures. General information, not tax advice.
Tier 1 covers the first 14,000 km of total travel; tier 2 applies to business km beyond that. Rates change annually; enter current IRD figures. General information only.
The calculator applies the tier one rate to your business kilometres up to the tier one cap (14,000 km), and the tier two rate to any business kilometres above the cap. The total reimbursement is the sum of the two. If your business kilometres are under the cap, it is all at the tier one rate.
For 8,000 business kilometres, all of them fall under the 14,000 km cap, so they are claimed at the tier one rate of 1.04 dollars, giving a reimbursement of about 8,320 dollars. Drive 18,000 km and the last 4,000 would be at the lower tier two rate.
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