1. Why mileage tracking matters for landlords
As a property owner managing one or more rentals, you often need to drive to:
- Inspect the property (routine, between tenancies, after repairs)
- Meet tenants
- Meet tradespeople on-site
- Attend to maintenance or emergency call-outs
These are business-use travel for tax purposes (when the property is being rented or available for rent). The amount you spend (or the estimate you use via kilometre rates) can be deductible, so you’re reducing your taxable rental income and ultimately paying less tax.
But the key is: you must track it properly and apply the correct method.
2. Two methods: Actual cost vs kilometre rates
Inland Revenue (IRD) allows two main methods for claiming vehicle travel:
a) Actual cost method
You track all costs of the vehicle (fuel, maintenance, depreciation, insurance, registration, tyres, etc), determine the business‐use portion (e.g. 60% business / 40% private) and claim that portion.
> This method can be more work but may lead to a higher deduction if your actual costs are high.
b) Kilometre rate method
Here you use IRD’s “kilometre rates” (set annually) and multiply by the business kilometres travelled. Simpler. But you must still keep credible records of kms and business use.
For many landlords—especially self-managing and using a vehicle for site visits etc—the kilometre rate method is a good fit due to its simplicity.
3. What are the IRD kilometre rates ?
For the income year 1 April 2024 to 31 March 2025 (or equivalent balance date), the IRD’s published rates are:
* Image courtesy of Inland Revenue (IRD).*
You can find previous year rates here: 2023-2024, 2022-2023, 2021-2022, 2020-2021
What do Tier 1 and Tier 2 mean?
- Tier 1 covers the business portion of the first 14,000 km travelled by the vehicle in a year (including private and business use) when using the kilometre rate method.
- Tier 2 covers business travel over 14,000 km in that year and covers running costs only (not fixed costs).
Remember, not everything on the road counts as a deductible expense. Fines, parking tickets, and towing fees are always personal costs—even if they happen while you’re visiting your rental.
How to make tax time easy
Good record-keeping is essential to support any IRD claim. Bank statements alone aren’t enough - you’ll need to keep receipts, mileage logs, and other supporting records for at least seven years.
That’s where myRent can help. Our platform is built specifically for NZ landlords and makes mileage tracking simple. You can easily record trips, add notes, and keep all your travel records together with your rental income and expenses.
And because myRent is an all-in-one tool, you can also manage rent payments, advertise your property, and create professional inspection reports - all from the same place.
Start tracking your mileage and managing your rentals smarter today - try myRent free.
The information contained in this article is exclusively for promotional purposes. It does not in any way constitute legal advice and should not be relied upon as the basis for any legal action or contractual dealings. The information is not and does not attempt to be, a comprehensive account of the relevant law in New Zealand. If you require legal advice, you should seek independent legal counsel. myRent.co.nz does not accept any liability that may arise from the use of this information.
