Claiming Mileage Expenses in Ireland: Revenue Rates 2026

What civil service mileage rates are

Civil service mileage rates are Revenue-approved cent-per-kilometre rates that an Irish employer can pay an employee to reimburse business mileage without the payment being taxable as income. The rates are set by the Department of Public Expenditure, NDP Delivery and Reform (originally for civil servants, hence the name), and Revenue accepts them as the tax-free ceiling for private-sector employees and company directors too.

A single cent-per-kilometre rate covers all car-running costs:

• Fuel or electricity
• Insurance
• Motor tax
• Servicing, tyres, wear and tear
• Depreciation

No receipts needed per category. Just an accurate mileage log. That's the appeal — simplicity and tax-free reimbursement rolled into one.

Full 2026 car mileage rate tables

Rates apply to business kilometres travelled in a calendar year (1 January to 31 December). Distance bands are cumulative — the first 1,500 km of business travel attract Band 1 rates, the next 4,000 km attract Band 2, and so on.

Standard car rates (in force since 1 September 2022)

All figures are in cents per kilometre. Revenue deliberately set Band 2 as the highest — recognising that a driver crossing 1,500 km is clearly doing significant business travel and deserves to be compensated more generously. Bands 3 and 4 then step down sharply to discourage inflated high-mileage claims.

Electric vehicle mileage — the 1,201–1,500cc rate

A common question: which band applies to an EV, which has no engine capacity in cc? Revenue's guidance is explicit: EVs claim at the 1,201–1,500cc rate — the middle column of the table above.

Reduced rates for training and conferences

A separate reduced rate applies to mileage incurred travelling to approved courses or conferences where the employer is paying the course fee. It's a flat lower rate that doesn't use the distance-band structure.

This matters for anyone attending CPD training, industry conferences, or professional certifications where the employer reimburses travel. The reduced rate applies regardless of annual mileage accumulated — it's a fixed per-km rate for this specific category of journey.

Who can claim — employees and directors only

Civil service mileage rates can be used by:

• PAYE employees of Irish companies, where the employer reimburses business mileage
• Directors of Irish companies (including proprietary directors of their own companies)
• Employees of partnerships — but not the partners themselves
• Public sector workers — where the rates originated

In every case, the journey must be for legitimate business purposes— travel to a client, a temporary workplace, a training event, a supplier visit, or similar. The commute between home and your regular place of work is never claimable as business mileage.

Sole traders — why you must claim actual expenses instead

What sole traders must do instead is claim actual business expenses. That means calculating the business-use proportion of every vehicle-related cost:

• Fuel or electricity — business miles ÷ total miles × fuel costs
• Insurance — same apportionment
• Motor tax — same apportionment
• Servicing, tyres, repairs — same apportionment
• Capital allowances — depreciation on the vehicle purchase, typically 12.5% per year over 8 years, restricted to a €24,000 cost ceiling for private cars
• Finance interest — the business-use portion of any car-loan interest

You need receipts for every cost and a mileage log showing business vs personal kilometres for the tax year. The business-use percentage is usually the biggest variable — a sole trader whose car is 70% business use and 30% personal can deduct 70% of every cost above.

Which approach gives a bigger claim?

Not always obvious. A rough guide:

• High annual mileage (20,000+ km) business use with an older, paid-off car: actual expenses often wins, because fuel costs dominate and the civil service rate's Band 3 and 4 rates drop sharply.
• Low–medium annual mileage (up to 10,000 km) business use with a newer car: civil service rates would have been simpler and arguably better — but they're not available to sole traders. Actual expenses still apply.
• EVs with home charging: actual expenses are very low, so the claim is small regardless.

Every sole trader's situation is different. A quick chat with an accountant at year-end is usually worth far more than the cost.

What records Revenue requires

Whether you're using civil service rates or claiming actual expenses, the record-keeping burden is similar. For every business journey, Revenue expects:

A spreadsheet is acceptable. A dedicated logbook is better. A paper diary is fine if it's legible and complete. The key test is: can you show the underlying detail if Revenue asks?

Retention period: 6 years from the end of the relevant tax year, in line with general Revenue record-keeping rules.

Worked example — a typical year

Let's say you're an employee of an Irish company, drive a 1.5L petrol car (which falls into the 1,201–1,500cc band), and you make 8,000 km of business journeys during the tax year. Your claim works out as:

€4,612.95, paid tax-free to the employee, fully deductible for the employer. The same 8,000 km in a 2.0L car (1,501cc+ band) would come to €5,361.29 — the engine-band premium is real.

Notice how Band 2 does a lot of the work. A driver who just creeps over the 1,500 km threshold has already unlocked the most generous rate for their next 4,000 km of business travel — one of the quirks of the cumulative-band structure.

Enhanced Reporting Requirements (ERR)

From 1 January 2024, all Irish employers must report three categories of non-taxable payments to employees in real time to Revenue:

1. Small benefit exemption payments (vouchers, non-cash benefits up to €1,500 across 5 items)
2. Remote working daily allowances (up to €3.20 per day)
3. Travel and subsistence — including mileage reimbursements and overnight subsistence

This is not new tax, it's new reporting. Revenue already allowed these payments tax-free; ERR requires employers to notify Revenue of each payment as it happens, instead of just reconciling at year-end.

What this means for employees and directors: your mileage claim doesn't change. Your employer must now submit the payment data to Revenue in real time through their payroll system. From your side, the burden stays the same — accurate logbook, correct engine band, legitimate business journeys.

Motorcycle and bicycle rates

Motorcycle rates (effective 5 March 2009)

Bicycle rate (effective 1 February 2007)

A flat 8¢/km regardless of distance. Small, but adds up for a commuter using a bike for legitimate inter-site travel.

Frequently asked questions