From 2025, driving a high-emission car in New Zealand is going to cost you more—literally. The government is rolling out a stricter version of the NZ Car Emission Tax 2025, making sustainability a must, not just a choice.
If you’re thinking of buying a car, importing one, or just want to stay informed, this guide breaks it all down for you.
Table of Contents
Why Is New Zealand Making This Change?
The goal behind the NZ Car Emission Tax 2025 is to cut carbon emissions on New Zealand roads. The country is taking aggressive steps to meet climate targets and lower vehicle pollution levels.
This is done by strengthening the clean car discount scheme and penalizing high-emission vehicles through updated fines and fees.
Key Changes in 2025
The updated tax framework rewards clean vehicles and penalizes polluters more heavily than before.
Vehicle Type |
Tax Impact (2025) |
Details |
|---|---|---|
Zero-emission vehicles |
Rebates up to $7,500 |
Includes new EVs and selected plug-in hybrids under the clean car discount |
Low-emission vehicles |
Small rebates |
Vehicles with minimal emissions may qualify for partial rebates |
High-emission vehicles |
Fines up to $6,000+ |
Heavier penalties apply to petrol/diesel vehicles with high CO₂ output |
How the Emission Tax Is Calculated
The NZ Car Emission Tax 2025 uses the amount of CO₂ a vehicle emits (in grams per kilometer) to determine whether you’ll receive a rebate or face fines.
It applies to:
-
New and used imported vehicles
-
Vehicles being registered in New Zealand for the first time
-
Cars, utes, SUVs, and vans
The cleaner your car, the less you’ll pay—or you might even earn a rebate.
Vehicles Likely to Attract High Fines
Planning to buy a fuel-hungry SUV or an older diesel ute? These are among the vehicles that will likely attract higher fines under the updated emission rules.
Examples of high-risk vehicles:
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Diesel double-cab utes
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Petrol SUVs with large engines (2.5L or more)
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Older imports with outdated emission systems
Clean Car Discount Still in Place
Don’t worry—eco-conscious drivers still benefit. The government is keeping the clean car discount alive for vehicles that produce less pollution.
Eligible for discounts:
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New electric vehicles (EVs)
-
Plug-in hybrids (PHEVs)
-
Low-emission imports (less than 146g CO₂/km)
This is a great time to go green and get rewarded for it.
What Car Buyers Should Know in 2025
Depending on what kind of buyer you are, your approach will need to shift in 2025. Here’s a breakdown:
Buyer Type |
Action to Take |
|---|---|
New car buyers |
Review the emissions label before purchase. EVs bring big savings |
Used car buyers |
Avoid older vehicles with high CO₂ emissions |
Tradespeople/Farmers |
Look into hybrid or lower-emission work vehicles |
Private importers |
Understand new tax thresholds and how they impact your import |
How to Avoid Paying Extra
Here are practical tips to avoid unnecessary fines under the NZ Car Emission Tax 2025:
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Choose EVs or hybrids whenever possible
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Always check a car’s emissions rating before purchase
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Use the Waka Kotahi Emission Fee Calculator for estimates
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Buy early before price adjustments hit the market
FAQs
Q1: Will petrol and diesel cars be taxed more than others?
Yes. Vehicles with higher CO₂ output—usually petrol and diesel—will attract higher fines under the new rules.
Q2: Can I still get a clean car discount in 2025?
Yes. The clean car discount will continue for qualifying vehicles, though the emissions threshold is stricter now.
Q3: Will my current car be taxed again?
No. The tax only applies when a vehicle is registered in New Zealand for the first time. Existing vehicles are not affected.
Q4: Are there exemptions to this tax?
Some exemptions exist for vehicles like mobility-modified cars, vintage collector models, and low-volume imports. Documentation will be needed for approval.
Final Thoughts
The NZ Car Emission Tax 2025 is more than just a policy—it’s a signal of change. Whether you’re buying, selling, or importing a vehicle, it’s time to think green. Between larger fines and attractive clean car discounts, New Zealand is clearly steering toward a more sustainable road ahead.
Looking to save money and the environment? The smartest move in 2025 is going clean.
Click here to learn more
