Reference

NZ Asset Depreciation Rates (IRD)

Last updated: May 2026

DV & SL

Two Methods

$1,000

Low-Value Write-Off

Most Buildings

Depreciation lets a business spread the cost of an asset over its useful life as a deduction, rather than claiming it all at once. IRD sets depreciation rates by asset type. There are two methods, diminishing value (DV) and straight line (SL), and assets under a low-value threshold can be written off in full immediately. The rates below are illustrative; use the IRD depreciation rate finder for the exact rate.

Depreciation Calculator Chattels Depreciation Provisional Tax Calculator

The Two Methods

Method	How it works
Diminishing value (DV)	A fixed percentage of the asset's remaining (written-down) value each year. Larger deductions early on.
Straight line (SL)	The same dollar amount each year, based on the original cost. Even deductions over the asset's life.
Low-value asset write-off	Assets costing $1,000 or less can generally be fully deducted in the year of purchase rather than depreciated.

Source: IRD - Depreciation. The low-value threshold has changed over time; confirm the current figure.

Illustrative Rates for Common Assets

Indicative diminishing value rates; the exact rate depends on the asset category and the year you bought it. Always check the IRD rate finder.

Asset	Indicative DV rate
Computers and laptops	~50%
Mobile phones	~67%
Office furniture	~13 to 20%
Motor vehicles (cars)	~30%
Carpet (rental chattel)	~20 to 25%
Heat pumps and appliances (rental chattels)	~13 to 20%
Most buildings	0% (non-depreciable since the 2024/25 year)

Depreciation on most buildings was set to 0% from the 2024/25 income year, so building structures generally cannot be depreciated, though fit-out and chattels often can. For rental properties, the chattels (carpet, curtains, appliances) are where most depreciation deductions arise.

Source: IRD - Claiming depreciation and the IRD depreciation rate finder. See also our NZ Property Tax Rules reference.

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