How is company car BIK calculated in Ireland in 2026?

BIK = (OMV − any reductions) × applicable percentage rate. The percentage depends on the vehicle's CO2 emissions category (A1 zero-emission through E highest emissions) and your annual business kilometres (4 bands: 0–26,000, 26,001–39,000, 39,001–48,000, 48,001+). For 2026, the highest mileage band's lower limit drops from 52,001 km to 48,001 km.

What is the new Category A1 for BIK?

From 1 January 2026, Revenue introduced a new zero-emission category called A1, specifically for EVs. Rates range from 6% (for business mileage over 48,001 km per year) down to 15% (for 0–26,000 km). This is lower than the old Band A rates of 9%–22.5%.

How much is the OMV reduction for an EV company car in 2026?

€30,000 total: a €20,000 EV-specific reduction plus the €10,000 universal reduction that applies to all A1–D vehicles and vans. So a €50,000 EV has a BIK-taxable OMV of just €20,000 in 2026.

What is the BIK rate for an electric company car in 2026?

Under the new Category A1: 15% for 0–26,000 business km, 12% for 26,001–39,000 km, 9% for 39,001–48,000 km, and 6% for over 48,001 km.

What is the BIK rate for a company van in 2026?

A flat 8% of OMV, regardless of CO2 emissions or business mileage. The €10,000 universal OMV reduction applies to vans too. So a €30,000 van with the reduction is taxed at 8% of €20,000 = €1,600 BIK per year.

Can I combine the EV and universal OMV reductions?

Yes — they stack. A €50,000 EV in 2026 gets both the €20,000 EV-specific reduction and the €10,000 universal A1–D reduction, totalling €30,000. The taxable OMV becomes €20,000.

What happens to BIK in 2027 and 2028?

Combined EV OMV relief drops from €30,000 (2026) to €15,000 (2027) to €2,500 (2028), and disappears entirely from 1 January 2029. Standard A1–D universal relief tapers similarly: €5,000 in 2027, €2,500 in 2028, €0 in 2029.

Are home EV chargers taxable as a benefit?

No, provided three conditions are met. From 1 January 2025, an employer can install a home EV charger at an employee's main residence without it being a taxable benefit, provided the employer retains ownership of the charger, the employee has private use of an employer-provided EV, and the charger is installed at the employee's sole or main residence in Ireland.

Can my employer reimburse me for home charging electricity?

Yes. Where the employer provides an EV and the employee pays for home charging electricity, the employer can reimburse those costs tax-free — provided the reimbursement is strictly for running costs of the employer's EV and the employer retains supporting documents.

Do I need to keep business mileage records?

Yes, always. Your BIK rate depends on which of the four business mileage bands you fall into — and Revenue can audit. You need a contemporaneous mileage log showing date, from/to, distance, and business purpose for every business journey.

What's the difference between a company car and a car allowance?

A company car is an employer-owned (or leased) vehicle provided to the employee for business and private use — you pay BIK on it. A cash car allowance is extra salary added to your pay packet to fund your own personal car — fully taxable at your marginal rate but no BIK applies.

What counts as 'business' mileage vs commuting?

Business mileage is travel for business purposes: client visits, site visits, supplier meetings, training. Your daily commute between home and normal workplace is NOT business mileage.

Company Car BIK Ireland 2026: Rates, Reductions & Calculator