Use this free calculator to estimate mileage reimbursement for business travel in New Zealand. Enter your start and end odometer readings and the per-kilometre rate your employer uses (pre-filled with the current IRD petrol rate of $1.20/km). Results are a guide only.
Mileage Reimbursement (IRD)
Guide only: The rate (e.g., $0.95/km) is reviewed by IRD. Employers may pay mileage for business use of your own car. Update this rate in Settings if IRD changes it.
IRD kilometre rates 2025–26
| Vehicle type | Tier 1 (first 14,000 km) | Tier 2 (after 14,000 km) |
|---|---|---|
| Petrol | $1.20 per km | 37 cents per km |
| Diesel | $1.30 per km | 38 cents per km |
| Petrol hybrid | 90 cents per km | 24 cents per km |
| Electric | $1.22 per km | 23 cents per km |
How to use this mileage calculator
- Type your start and end odometer readings (in kilometres).
- Check the per-km rate (IRD 2025–26 petrol rate: $1.20/km for the first 14,000 km). Edit if your employer uses a different rate.
- Click Calculate to see distance travelled and your total reimbursement.
How mileage reimbursement works in NZ (quick guide)
- Mileage is usually paid for business use of your own car (not commuting).
- Employers often use an IRD-style per-kilometre rate.
- Reimbursement = (End odometer − Start odometer) × Per-km rate.
- Some employers apply tiers/caps. Always confirm the rate in your agreement.
Worked examples
Example A — Contractor trip
Start odometer: 25,450 km
End odometer: 36,501 km
Rate: $1.20/km
Distance = 36,501 − 25,450 = 11,051.0 km
Reimbursement = 11,051.0 × 1.20 = $13,261.20
Example B — Short client visit
Start: 12,100.0 km
End: 12,146.3 km
Rate: $1.20/km
Distance = 46.3 km
Reimbursement = 46.3 × 1.20 = $55.56
FAQs
Is this tax-free?
Mileage reimbursements paid within IRD-style rates are generally non-taxable to the employee. Check with your employer or tax adviser.
Does this cover commuting?
No. Trips between home and your regular workplace are usually considered commuting and not reimbursed.
What about tiered rates or caps?
Some employers apply different rates after a threshold. This tool shows a simple single-rate method. Confirm the rules in your policy.
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Disclaimer
This calculator is a guide only. Employers set their own rates and rules; some use tiers or caps. Always confirm your eligibility and the per-km rate in your employment agreement or with payroll/HR. For official guidance, see Inland Revenue.