Company Car BIK Calculator Ireland 2026

Estimate the Benefit-in-Kind tax on a company car using Revenue's official 2026 rules — CO₂ category, business mileage, and the new electric vehicle Category A1.

BIK ≠ VRT ≠ Motor Tax

BIK is a payroll tax on the private-use value of a company car. It's separate from VRT (once-off registration tax) and motor tax (recurring road tax) — all three can apply to the same vehicle.

BIK Estimator (2026)

€

0 g/km = electric (Category A1)

Based on Revenue's Tax and Duty Manual Part 05-01-01b, 2026 rules. This does not account for the 20% reduction for employees spending 70%+ of working time away from base, or averaged-OMV motor industry rules — confirm your specific case with Revenue or your employer's payroll team.

2026 BIK Rate Table

The percentage applied to OMV depends on your car's CO₂ category and annual business kilometres. Source: Revenue Tax and Duty Manual Part 05-01-01b.

Business KMA1 (0g/km)A (1-59g/km)B (60-99g/km)C (100-139g/km)D (140-179g/km)E (180g/km+)
0 – 26,00015%22.5%26.25%30%33.75%37.5%
26,001 – 39,00012%18%21%24%27%30%
39,001 – 48,0009%13.5%15.75%18%20.25%22.5%
48,001+6%9%10.5%12%13.5%15%

Vans are taxed separately at a flat 8% of OMV. Motorcycles at 5% of market value.

Related Calculators

Company Car VRT Calculator

VRT and registration tax for business vehicles.

Open calculator →

Motor Tax Calculator

Estimate the recurring annual road tax.

Open calculator →

Electric Car VRT Calculator

EV-specific VRT rates and relief.

Open calculator →

Car VRT Calculator Ireland

Main calculator for all vehicle types.

Open calculator →

Frequently Asked Questions

What is BIK on a company car?

Benefit-in-Kind (BIK) is a tax on the value of a company car you're allowed to use privately. It's added to your taxable income and taxed through payroll (PAYE, USC, PRSI), separate from VRT (paid once at registration) and motor tax (the annual road tax).

How is BIK calculated in 2026?

Cash equivalent = (OMV minus any applicable temporary reduction) × the BIK rate for your CO2 category and annual business mileage. Revenue uses 5 CO2 categories — A1 (0g/km, electric), A (1-59g/km), B (60-99g/km), C (100-139g/km), D (140-179g/km), and E (180g/km+) — combined with 4 business mileage bands.

What is the new Category A1 for electric cars?

From 1 January 2026, Finance Act 2025 introduced Category A1 specifically for zero-emission (0g/km) cars, with rates from 15% (low mileage) down to 6% (48,001km+ business mileage) — lower than any other category.

How much is the OMV reduced for electric company cars in 2026?

Electric vehicles get a combined €30,000 reduction to OMV for 2026 (the standard €10,000 temporary reduction plus an additional EV-specific reduction), tapering to €15,000 in 2027 and €2,500 in 2028.

Is there a temporary OMV reduction for petrol/diesel company cars too?

Yes. Cars in categories A1, A, B, C and D get a €10,000 temporary reduction to OMV for the 2026 year of assessment (tapering to €5,000 in 2027 and €2,500 in 2028). Category E cars (the highest emissions) do not qualify for this reduction.

How is a company van taxed differently?

Vans are taxed at a flat 8% of OMV (not mileage-banded like cars), and also qualify for the €10,000 temporary OMV reduction in 2026.

What if I do a lot of business mileage?

Higher annual business kilometres move you into a lower BIK percentage band — from up to 26,000km (highest rates) down to 48,001km+ (lowest rates), reflecting that less of the car's use is genuinely private.

Can I reduce my BIK further?

Yes, in specific cases: employees who spend 70%+ of their working time away from their employer's base and travel significant business mileage (with a logbook) may qualify for a 20% reduction in the cash equivalent. Making a personal contribution toward running costs can also reduce the taxable benefit.