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How does company-car BIK work for electric cars in Ireland?

The short answer

Electric company cars in Ireland are no longer 0% BIK — that exemption ended after 2023. In 2026 a battery-electric car gets €30,000 taken off its Original Market Value (a €20,000 EV-specific reduction plus the €10,000 universal one), and Category A1 rates of 6% to 15% then apply to the remainder, set by annual business mileage. An EV at or under €30,000 OMV therefore pays no BIK, while a €45,000 EV is charged on €15,000. Plug-in hybrids get none of this and are taxed on CO2 like a petrol or diesel company car.

BIK is the tax an employee pays on the private use of a company car. It is worked out as the car's Original Market Value, minus any reduction it qualifies for, multiplied by a percentage set by the car's emissions category and the driver's annual business kilometres. The flat 0% rate that applied to electric company cars ended after 2023. From 1 January 2026 a full battery-electric car sits in Category A1 and receives a €30,000 OMV reduction — €20,000 EV-specific, plus the €10,000 universal reduction that Categories A to D also get. Category A1 percentages run from 15% below 26,000 business km down to 6% above 48,000 km, the lowest of any category. Worked through: a €45,000 electric car reduces to €15,000, and at 12% for 30,000 business km the cash equivalent is €1,800 for the year, taxed through payroll as normal pay. The universal €10,000 reduction tapers to €5,000 in 2027 and €2,500 in 2028, so the saving is at its largest now. Plug-in hybrids receive no OMV reduction and no Category A1 treatment — they are charged on CO2 like any conventional company car. For the full rate table across every category, see our 2026 company car BIK rates page.

Related questions

Do electric company cars pay BIK in Ireland?

They pay BIK, but far less than any other fuel. The 0% exemption ended after 2023. In 2026 an electric company car gets €30,000 off its Original Market Value and is then charged at Category A1 rates of 6% to 15%, depending on annual business mileage. An EV at or under €30,000 OMV comes out at zero; above that, tax is due on the balance.

Do plug-in hybrids get the same BIK relief as EVs?

No. Plug-in hybrids get neither the €20,000 EV-specific OMV reduction nor the Category A1 rates. They are placed in a category by their CO2 emissions and taxed like a regular petrol or diesel company car, though they do still receive the €10,000 universal OMV reduction if they fall in Categories A to D.

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