Irish Company Car BIK Calculator 2026
If your employer provides a company car for personal use, you pay tax on the 'benefit'. The amount depends on the car's CO₂ emissions, your annual business mileage, and the original market value (OMV). This calculator applies Revenue's banded BIK percentages plus the temporary €10,000 OMV deduction in force for 2026.
Key terms
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Benefit-in-Kind (BIK)
A taxable perk provided by an employer — most commonly a company car, fuel card, or accommodation — valued and taxed as if it were salary.
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Gross vs Net Pay
Gross pay is your salary before tax; net (take-home) pay is what lands in your bank account after PAYE, USC, PRSI and pension are deducted.
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Universal Social Charge (USC)
A progressive tax on most income above €13,000 a year in Ireland, charged on top of income tax and PRSI.
How is this calculated?
Step 1: classify the car by CO₂ g/km into Categories A–E. Step 2: pick a mileage band based on annual business kilometres. Step 3: look up the BIK percentage. Step 4: subtract the €10,000 temporary OMV deduction. Step 5: multiply by the BIK% to get the cash-equivalent benefit. Step 6: multiply by your marginal income tax rate (20% or 40%) for the actual cost — USC and PRSI also apply on the same notional figure but aren’t surfaced separately here.
Frequently Asked Questions
What is BIK on a company car?
If your employer provides a car for your personal use, that car is a taxable benefit. You pay income tax (PAYE) on a notional 'cash-equivalent' value calculated from the car's OMV and characteristics. The actual cash you pay each year is BIK% × OMV × your marginal tax rate.
How does CO₂ affect BIK in Ireland?
Since 2023, BIK is banded by CO₂ emissions — Category A (lowest emissions, e.g. EVs) incurs the lowest percentage; Category E (highest, e.g. older diesel SUVs) incurs the highest. The reform was designed to favour electric and low-emission vehicles.
Is an electric car cheaper for BIK?
Significantly. An EV typically falls in Category A (≤59 g/km CO₂), the lowest band. Combined with the €10,000 OMV deduction, an EV company car often results in materially lower BIK than a comparable petrol or diesel — sometimes by thousands of euro per year.
What is OMV?
Original Market Value — the list price of the car when new, including VRT, VAT, and any optional extras. NOT the price your employer paid (which may include discounts) or the current second-hand value. Revenue uses OMV as the base for BIK to keep the calculation independent of dealer-specific deals.
Can I avoid BIK by paying for fuel myself?
Personal-use BIK is on the car itself, not the fuel. If the employer also pays for personal fuel, additional BIK applies. There are limited reductions if the employee pays a contribution towards private use, but the rules are tight — check with payroll.
Last updated: May 2026 · Rates sourced from Revenue