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New IRD kilometre rates for 2025-26 — already live in Zelvo

Hari Maurya
#release-notes#mileage#vehicle-expenses

Inland Revenue has published its updated kilometre rates for the 2025-26 income year (1 April 2025 to 31 March 2026) — the year IRD officially calls the 2026 income year. The kilometre-rate method is set out in Operational Statement OS 19/04a, under which IRD updates the rates each year; these IRD mileage rates (or km rates) are the numbers that apply to this year's return if you claim vehicle expenses for trips to your rental property.

Good news: Zelvo is already updated. Any trips you've logged for FY 2025-26 are now calculated using the new rates — there's nothing for you to change.

The new rates

The kilometre-rate method has two tiers. Tier 1 covers the first 14,000 km of total travel in the year (a combination of your vehicle's fixed and running costs). Tier 2 applies to business kilometres beyond that (running costs only).

Tier 1 — first 14,000 km:

  • Petrol: $1.20/km
  • Diesel: $1.30/km
  • Petrol hybrid: $0.90/km
  • Electric: $1.22/km

Tier 2 — beyond 14,000 km:

  • Petrol: $0.37/km
  • Diesel: $0.38/km
  • Petrol hybrid: $0.24/km
  • Electric: $0.23/km

Most rates have nudged up from 2024-25 — Tier 1 petrol moved from $1.17 to $1.20, diesel from $1.26 to $1.30, hybrid from $0.86 to $0.90, and electric from $1.08 to $1.22.

What this means for you

If you use Zelvo's mileage tracking, nothing changes in how you work:

  1. Log your trips as usual. Record the trip purpose and distance — that's your substantiation, no 90-day logbook required.
  2. Zelvo applies the right rate. Your vehicle type and the FY you're viewing determine the rate automatically, and the 14,000 km Tier 1 cap with the Tier 1/Tier 2 split is handled for you from your annual odometer readings.
  3. Your deduction reflects the new figures. Open the Mileage page for FY 2025-26 and the kilometre-rate panel now shows the confirmed IRD rates.

A note on keeping rates current

IRD sets these rates each year once the underlying industry cost data is available, usually publishing around May. We update Zelvo as soon as the new Operational Statement lands, and confirmed years are clearly distinguished from any provisional figures — so you can trust that the numbers behind your return are the official ones.

You can read the full rates on Inland Revenue's website: Kilometre rates 2025-2026.

Spotted something that doesn't look right, or want a feature that would make tracking easier? Get in touch — your feedback shapes where Zelvo goes next.

— Hari