All you need to know about New Zealand’s road user charges (RUC)

If you’re planning to rent a car (or campervan) in New Zealand, while reading your rental agreement small print you may have come across mentions of road user charges (RUC), and thought to yourself “what on Earth is RUC?” Don’t fret, VroomVroomVroom is here to help with a detailed and plain-English explainer on what RUC is and how it works.

Put simply, rather than rely solely on fuel excise to contribute towards the funding of new roads and maintain existing ones, New Zealand decided — for certain types of vehicles — to introduce RUC as a distance-based levy to ensure all drivers, regardless of their vehicle type, make a contribution in proportion to how much they drive and thus how much wear they impose on New Zealand's roads.

For travellers, the key questions are: What is RUC? Does RUC apply to my rental car or hired campervan, and how will the rental company manage it? This guide answers those questions and more.

What are road user charges?

RUC stands for road user charges. It’s a scheme managed by Waka Kotahi (NZ Transport Agency) to make sure that all drivers — regardless of the type of vehicle they’re driving — contribute towards the upkeep of New Zealand’s roads. While most drivers make this contribution through a levy (or fuel excise) when they fill up at the gas station, other vehicles such as electric (EV) and diesel-fuelled vehicles are now required to pay RUC.

In essence, RUC shifts the burden from solely “tax at the pump” to include “pay for distance travelled”, with the revenue feeding into the National Land Transport Fund, which supports road construction and maintenance, public transport, walking/cycling infrastructure, and safety investments across New Zealand.

What is the purpose of RUC?

The logic behind RUC is fairness and cost recovery. Diesel-fuelled, electric, and plug-in hybrid vehicles escape the existing fuel excise (because they don’t use petrol), which means they’re undercontributing towards the costs of road maintenance. Since any type of vehicle creates wear and tear on the roads — regardless of how it is fuelled — as EVs continue to grow in popularity this will become a greater issue. In 2015 there were 12,000 fuel-efficient petrol hybrid vehicles in New Zealand, while in 2025 there are 350,000.

RUC fills this gap by charging certain vehicle types based on the distance travelled and the vehicle weight — rather than how much fuel they consume. As vehicle technology continues to evolve, leading to even more efficient petrol vehicles and EVs, the New Zealand government plans to eventually phase out petrol tax entirely and move to a universal RUC system.

Who needs to pay RUC?

In broad terms, RUC apply to:

There are some RUC exemptions, including:

In summary, vehicles that run exclusively on petrol, LPG, or CNG, and weigh under 3,500 kg generally are not required to pay RUC because they pay their road-use contributions via fuel excise at the pump.

Does RUC apply to rental cars in New Zealand?

Rental cars in New Zealand are subject to the same laws as any other vehicle, meaning whether a rented vehicle attracts RUC depends solely on its fuel type, weight, and how the hire car provider handles it (see below). If the car is diesel, electric, or otherwise qualifies for RUC under the rules above, then yes, RUC will be due. On the other hand, if it’s a petrol sedan under 3,500 kg (for example), then there’s no RUC due.

In practice, most rental companies will either include RUC in the quoted rate or apply a surcharge, so when renting a car you won’t deal with NZTA yourself. As always, reading the fine print in your rental car Terms and Conditions is key, and be aware some companies may bundle it under “Government surcharges and taxes” or something similar without a clear explanation.

How do rental car providers in New Zealand handle RUC?

Unfortunately rental car providers each handle RUC in their own way, and it’s wise to ask before booking how RUC is dealt with. Approaches may include (note, this is not a comprehensive range of approaches as rental car providers can be quite imaginative with their billing methods):

Does RUC apply to campervan and motorhome rentals in New Zealand?

Yes. In most cases campervans and motorhomes are either heavy enough or use diesel, thus making them subject to RUC. The campervan provider’s approach is typically RUC recovery where they charge a per-km fee (or a flat kilometre-based surcharge) to cover RUC liability.

While the New Zealand government sets RUC rates, providers may work in surcharges to any applied RUC, while others may not — approaches vary. As motorhomes tend to fall into higher RUC weight bands than regular rental cars, their per-km RUC can exceed that of smaller diesel cars, so always check the provider’s “road charges” or “RUC recovery” policy for the full details.

How are RUC calculated?

Once it is determined a vehicle is subject to RUC, the official system uses a schedule of rates (priced in NZ$ per 1,000 km) that vary according to the following parameters:

The above may sound simple, but determining the vehicle class (there are over a dozen) can be complicated. The New Zealand Government RUC calculator is helpful in this regard.

Once the rate is determined, it is multiplied by distance driven, any administration or transaction fees are added to it by the rental vehicle provider, and the final cost is arrived at.

What are some example RUC costs for rental cars?

There are six RUC pricing levels related to car rentals in New Zealand as follows:

Above RUC rates correct as at 16 October 2025. Source: Waka Kotahi (NZ Transport Agency).

The above are the official rates, but the actual extra cost you see in your rental invoice depends on the provider’s charging method.

What are some example RUC costs for campervans?

Unlike cars, as most campervans are diesel-fuelled, the RUC charges for campervan rental in New Zealand is most commonly determined by the weight of the vehicle:

Above RUC rates correct as at 16 October 2025. Source: Waka Kotahi (NZ Transport Agency).

As with the rental car RUC rates, the above are the official charges, but the actual extra cost you see in your rental invoice depends on the provider’s charging method.

Do foreign tourists have to pay RUC?

Yes, tourists are not exempt from the RUC. If the rental vehicle falls under the RUC rules, then there will be RUC due.

Are foreign tourists eligible for RUC refunds?

No. Unused distance RUC refunds do exist (for licence cancellations, off-road use, or odometer changes, for example), but these apply to registered owners, not casual renters. If the rental provider overcharges for RUC, it may issue a refund, but this is not specific to tourists.

Can you prepay your RUC?

The New Zealand government encourages people to purchase road user charges in advance, but for tourists visiting New Zealand, there is no real need to buy RUC beforehand as it’s easier to simply let the rental car or campervan provider handle the RUC and pass on the cost as a part of the your rental agreement. 

When people buy RUC in advance, it takes the form of a “distance licence”. This isn’t a physical licence, rather it is prepaid RUC for a fixed number of kilometres — typically purchased in 1,000-km blocks. A distance licence must be purchased, renewed, and/or topped up before the full allotment is used, and failing to do so can lead to assessment and/or penalties by the NZTA. Note, if you are a tourist visiting New Zealand, perhaps planning a road trip to Milford Sound, you’re not under any obligation to buy road user charges in advance — our advice is to simply let the car or campervan rental provider look after it.

Are there more changes coming?

In order to ensure that all road users will contribute fairly to the upkeep of New Zealand’s roads, regardless of vehicle type, the government plans to eventually transition all vehicles to the RUC system. 

In 2026, legislative and operational improvements will be implemented to modernise the RUC system with the goal of enabling the development of a fair and competitive retail market to deliver cost-effective means for vehicle owners to pay for their road usage.

In 2027 the new and revised RUC system will be launched. Private providers will be able to offer a wide range of solutions for owners of vehicles that have to pay for road usage. Beyond 2027, all petrol vehicles will be brought into the RUC system, although further legislative changes may be needed to ensure a smooth transition for the owners of petrol vehicles.

We’ll update this page as RUC regulations develop, and the Waka Kotahi (NZ Transport Agency) website covers RUC in detail.

Why you need to know about New Zealand’s RUC

For anyone renting a vehicle in New Zealand, understanding RUC is an essential step towards spotting hidden costs and making informed comparisons and choices. The principle is simple: vehicles that don’t fully contribute via fuel excise (diesel, electric, heavier, and hybrid vehicles) are charged according to the distance they are driven. Whether a campervan or car hire provider includes RUC or tacks it on as a surcharge depends on the provider. Always ask: Is RUC built in, or will there be a bill per kilometre driven?