Ireland's VRT relief on electric cars is worth up to €5,000, tapering above €40,000 OMSP and gone above €50,000. It was due to end on 31 December 2026, but Budget 2027 (6 October 2026) extended it to 31 December 2028. That is announced and not yet legislated: as of 12 October 2026 the Finance Bill had not been published, and the Budget did not restate the cap or the price bands for 2027 and 2028, so we assume they are unchanged. When the relief does end, a new battery electric car registered in Ireland will pay full Vehicle Registration Tax. Here's what that will mean in euro terms, and who it will affect.
The number that matters: how much more, exactly?
The relief was never a flat €5,000 in practice. Two rules cut it down: it can never exceed the VRT actually due (a BEV sits in the lowest CO2 band, so that's 7% of OMSP), and it tapers to zero between €40,000 and €50,000 OMSP. Put those together and the most relief any electric car in Ireland can receive is about €3,066 — at an OMSP of roughly €43,800, where the 7% ceiling and the taper cross. The €5,000 headline is unreachable at every price.
That also means the loss when the relief ends is not "bigger on more expensive cars." It peaks in the low €40,000s and then falls away, because cars above €50,000 were already getting nothing.
| OMSP band | Relief in 2026 | After the relief ends | Extra cost when it ends |
|---|---|---|---|
| Up to €40,000 | 7% of OMSP — €1,400 at €20,000, €2,100 at €30,000, €2,800 at €40,000 | Full VRT applies | €1,400–€2,800 more |
| €40,000–€50,000 | Peaks around €3,066 near €43,800, then tapers to zero | Full VRT applies | €3,066 falling to €0 |
| Above €50,000 | No relief — already zero | Full VRT applies | No change |
So a Hyundai Kona Electric at roughly €35,000 OMSP would lose about €2,450, and a Tesla Model 3 RWD around €40,000 about €2,800. Real money, but a long way short of the €5,000 figure that gets quoted. These are our own calculations using Revenue's published rules — you can check any specific car on our VRT calculator.
What doesn't change
It's worth being precise about what this deadline does and doesn't touch, because it's easy to lump every EV incentive together:
- The €3,500 SEAI purchase grant is a separate scheme on its own timeline, and the VRT relief's end date doesn't decide it. SEAI had announced no 2027 grant level as of October 2026. It does move on its own, though: its upper price cap was cut from €60,000 to €50,000 on 31 July 2026.
- The home charger grant (up to €300) is unaffected, and applies to new and used EVs alike.
- Motor tax stays at €120/year for BEVs — that's a separate, ongoing structure, not part of the VRT relief.
- Running costs (charging versus fuel) don't depend on the relief either. On our own running-cost maths (17,000km a year, 80% home charging), an EV uses about €630 of electricity a year against roughly €1,930 of petrol, using AA Ireland's July 2026 pump prices. That gap is about energy prices, not VRT. Run your own figures on our EV vs petrol calculator.
Who will feel it when it ends
- New EV buyers registering after the relief ends will feel it directly and immediately: full VRT, no relief. On the Budget 2027 timetable that is once the extended relief has ended (announced as the end of 2028), not at the start of 2027.
- Anyone importing a used EV and registering it in Ireland after the relief ends also loses it. See our import checklist for how that route works while it lasts.
- Buyers of already Irish-registered used EVs aren't directly affected: that car's VRT position was settled at its original registration, whenever that was. The indirect effect is on pricing. If new EVs get several thousand euro pricier and personal imports lose their edge, demand may lean more on the existing used-EV market. That is a reasonable expectation rather than a certainty, and with the relief extended it is two years further away.
Is it worth timing your purchase around it?
Not for 2026 any more. Under the Budget 2027 extension, a new EV or personal import registered in 2027 should still carry the relief, so there is no January 2027 price jump to beat. Because the extension is announced and not yet law, confirm the position for your registration date with the dealer or Revenue before relying on it. If you are shopping the existing Irish used-EV market, the relief does not change what you pay either way. Pick the car and the price that suit you, and keep an eye on the Finance Bill.
Where to go next
- Still deciding new vs used? → New vs Used EV in Ireland 2026
- Shopping the used market on a budget? → Best Used EVs Under €25,000 in Ireland 2026
- Thinking about a personal import? → Importing a Used EV to Ireland: VRT Relief Checklist
- Want the full grant mechanics and worked examples? → SEAI EV Grant & VRT Relief Guide
Ready to look at real stock?
Search used vehicles across Ireland on Autoza → Filter by electric, county and budget, and compare verified dealer stock today. Ask Mark, our buyer AI, to walk through the numbers for your situation. Trading in your current car? Get a free instant estimate at Value My Car.
By The Autoza Team. Updated 12 October 2026 for Budget 2027 (VRT relief extended to 31 December 2028; announced, not yet legislated). The euro figures are our own calculations from Revenue's published rules; check a specific car on our VRT calculator.
