Just Started Driving?
Your NZ Tax Roadmap Begins Here.
Important Information for NZ Drivers
Yes. In New Zealand, Uber, Zoomy, and UberEats drivers are considered self-employed contractors, not employees. This means you must pay income tax on your profit (your earnings minus your business expenses). If you have another job, this income is added on top of your salary and taxed at your personal tax rate. You must file an IR3 individual tax return at the end of every tax year (31 March).
As a rideshare driver, you are currently treated as a self-employed contractor for tax purposes. Unlike an employee, you do not have tax (PAYE) deducted from your weekly pay automatically. Instead, you receive your full gross earnings and must save a portion of that money to pay your own income tax and ACC levies to the IRD later in the year.
Your tax rate depends on your total annual income from all sources (including other jobs). For the 2025 tax year, the rates are:
10.5% on income up to $15,600
17.5% on income between $15,601 and $53,500
30% on income between $53,501 and $78,100
33% on income between $78,101 and $180,000
39% on income over $180,000 You only pay tax on your net profit, so claiming valid business expenses is the best way to lower your tax bill.
You strictly must register for GST if your self-employed turnover (total fares and delivery fees) is over $60,000 in any 12-month period. If you earn under $60,000, registering is optional. Important: Do not include wages from your main PAYE job in this $60,000 calculation; it applies only to your business income.
This is a payment from the IRD to drivers who are not GST registered. Because you cannot claim back GST on your fuel and car costs, the government gives you this 8.5% credit as a form of compensation. For example, on a $100 fare, the platform might pass on an extra $8.50 to you. This money is yours to keep, but it is considered taxable income.
The IRD provides standard “kilometre rates” you can use to claim vehicle expenses. For the 2024-2025 tax year, the Tier 1 rates (for the first 14,000km of business travel) are:
Petrol: 117 cents per km
Diesel: 126 cents per km
Hybrid: 86 cents per km
Electric: 108 cents per km If you drive over 14,000km, you use lower Tier 2 rates (approx. 19–37 cents depending on vehicle type).
You generally cannot claim the full purchase price of your car in one go. Instead, you claim depreciation (the loss of value over time). However, if you use the IRD kilometre rate method (see above), depreciation is already included in that rate, so you cannot claim it separately. If you use the “actual costs” method, you can claim depreciation plus actual fuel and repair receipts.
Besides vehicle costs, you can claim:
Mobile Phone: A percentage of your monthly bill and the cost of the phone itself (based on business use).
Service Fees: The commission Uber/platforms take from your fare.
Accountant Fees: The cost of hiring a tax agent.
Tolls & Parking: Only if incurred during a work trip.
Food: Generally no. You cannot claim lunch or coffee unless you are travelling overnight for business.
Yes! A logbook is the most important document for a rideshare driver. You must keep a logbook for at least 90 consecutive days every three years to prove the percentage of time your car is used for business vs. personal driving. Without a logbook, the IRD may limit your claim to only 25% of your vehicle costs, or deny it entirely.
As a self-employed driver, you pay ACC levies to cover you for personal injuries. For the 2025/26 year, the Earners’ levy is $1.67 per $100 of liable income. You may also pay a “Work Account” levy depending on your industry classification. These are invoiced separately by ACC after you file your tax return.
The standard deadline to file your IR3 income tax return is 7 July each year. However, if you are linked with a registered Tax Agent (like us), you get a significant extension and often don’t have to file until 31 March of the following year.
Yes. Under recent law changes, digital platforms (Uber, Ola, Didi, DoorDash) are legally required to share your income data directly with the Inland Revenue Department (IRD). If your tax return does not match the data they have, you are very likely to be audited.
