Reference
NZ Asset Depreciation Rates (IRD)
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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 CalculatorThe 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. |
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.