Company Car BIK Calculator 2026 (Ireland)
Calculate benefit-in-kind on a company car under the 2026 CO2-based bands, including the EV reliefs — and what it actually costs you in tax.
Calculator
EXAMPLE a petrol car at €30,000 adds about €2,834.27 tax a year — swap in your own numbers below.
BIK (benefit-in-kind) is how Revenue taxes private use of a company car: the car generates "notional pay" — money you never receive but pay tax on. This page works out that figure and what it costs you.
EXAMPLEExample cost of this car in tax (2026 rules) — swap in your own in the form
€2,834.27 a year in extra tax (€236.19 a month)
Band C at 30% — 120 g/km, 15,000 km business use. Taxable benefit (notional pay): €6,000.
This is the 2026 figure only. The relief that takes €10,000 off this car's original market value (OMV) is already legislated to fall to €5,000 in 2027: on 2027 reliefs the same car's taxable benefit is €7,500 instead of €6,000, and the tax €3,554.09 a year instead of €2,834.27 — about €719.82 a year more, at 2027 tax rates. A car kept for several years is taxed on the whole schedule, not on one year of it.
How the taxable benefit is built
| Original market value (OMV) | €30,000 |
|---|---|
| General temporary relief | − €10,000 |
| Reduced OMV | €20,000 |
| × 30% (band C, 15,000 km) | €6,000 |
| Taxable benefit (notional pay) | €6,000 |
What that means in tax
| Tax on salary alone — income tax + USC (Universal Social Charge) + PRSI (Pay Related Social Insurance) | €10,351.72 |
|---|---|
| Tax with the car's notional pay added | €13,185.99 |
| Example extra tax on this car | €2,834.27 a year |
| Per month (year ÷ 12) | €236.19 |
| Effective rate on the benefit — of every €100 of car benefit, about €47 goes in tax | 47.24% |
The employer's side: they pay employer PRSI of €677.27 a year on this benefit — the employer's cost, not the employee's.
Assumes a PAYE employee (PRSI Class A) under 66 on single treatment with the standard tax credits, no pension contributions and no medical card — the same arithmetic as the take-home pay calculator on the example salary with and without the notional pay.
An employee aged 66 or over pays no employee PRSI — this estimate would then be too high for them.
Against a fully electric car
Same price (€30,000), same 15,000 km of business driving — only the drivetrain differs.
| Example car — Petrol | Same car, fully electric | |
|---|---|---|
| Band × rate | C × 30% | A1 × 15% |
| OMV relief | €10,000 | €30,000 |
| Taxable benefit | €6,000 | €0 |
| Extra tax a year | €2,834.27 | €0.00 |
The electric version would cost about €2,834.27 less tax a year (100% lower) on these numbers.
The electric car in this comparison is a 2026-only picture: its OMV relief is already legislated to fall from €30,000 to €15,000 in 2027. On 2027 reliefs its taxable benefit is €2,250 instead of €0, and the extra tax €1,066.23 a year instead of €0.00, at 2027 tax rates. The general relief that cars in bands A1, A, B, C, D rely on falls the same way — from €10,000 to €5,000 in 2027 — so the wind-down is not an electric-car-only story. Price a multi-year car deal on the whole schedule, which is in the notes.
Enter your own numbers in the form and this section will show how to check the result against a payslip.
Assumptions and things to know
- The reliefs are winding down on a published schedule: the electric-car relief is €20,000 in 2026, €10,000 in 2027, €0 in 2028; the general relief is €10,000 in 2026, €5,000 in 2027, €2,500 in 2028 — for bands A1, A, B, C, D only; band E cars get no general relief. This page prices 2026 only.
- Figures assume the car is available for the FULL year. If the car was taken up or handed back mid-year, the benefit is pro-rated for the days it was available — this calculator does not model part-year availability.
- Keep a business-mileage log. Without one, Revenue's default is to treat all but 8,000 km of the year's total driving as private — that figure is a record-keeping fallback, not a rate threshold.
- A separate 20% flat OMV reduction exists for genuine mobile workers — all three conditions: at least 20 hours a week worked, at least 8,000 business km a year, and at least 70% of working time spent away from the employer's premises. It REPLACES the mileage tapering — whichever is better applies, never both. This calculator prices the mileage route only.
- Charging: workplace charging open to all staff is BIK-free, and a home charger installed by the employer is BIK-free for fully electric cars only.
- Vans are taxed under a different flat-rate rule — this calculator is for cars only.
- This page prices the car itself. If the employer also covers private fuel or other running costs beyond the car, ask payroll how those are treated — they are outside this calculator.
Estimates only — not professional advice.
In plain terms: BIK (benefit-in-kind) is how Revenue taxes a company car you can also use privately. The car's list price when new (its OMV), its CO2 band and your business mileage produce a yearly "notional pay" figure — money you never receive but pay income tax, USC and PRSI on through payroll, exactly as if it were salary. This calculator works out that figure and what it actually costs you, and compares the same car as a fuel burner versus fully electric.
How this calculator works
The car's CO2 figure places it in a band (a dedicated zero-emission band, then bands A–E), and your annual business kilometres pick the percentage from Revenue's 2026 matrix — more business driving, lower rate. Before the percentage is applied, the OMV is reduced by the reliefs: € 10,000 for most bands (band E gets nothing) plus a further € 20,000 for fully electric cars only. Anything you are required to pay your employer comes off AFTER the percentage, never before. The result is notional pay, and the tax impact shown here is the same arithmetic as the take-home calculator run twice — your salary with and without it. Every rate is read from a versioned data file assembled from the official manual below, and the engine must reproduce Revenue's published worked examples in its test suite before any deploy.
Sources
Key official sources for the figures on this page — the Sources page lists every statutory value with its effective and retrieval dates.