A Guide to BIK Tax Savings for Electric Company Cars in Ireland
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A Guide to BIK Tax Savings for Electric Company Cars in Ireland
With the 2026 tax landscape, choosing an electric vehicle (EV) for your company fleet has never been more financially advantageous. Whether you are looking for a specific executive saloon, a versatile SUV, or a practical city car, the government has introduced significant measures to incentivize the shift toward zero-emission transport.
The 2026 BIK Advantage: Category A1
In 2026, a dedicated Category A1 for zero-emission EVs was introduced, offering significantly lower Benefit-in-Kind (BIK) rates compared to combustion engines.
Massive OMV Reductions
For 2026, employees can benefit from a combined €30,000 reduction in the Original Market Value (OMV) of an electric vehicle before the BIK percentage is applied. This relief is structured as follows:
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€10,000 universal reduction (available for Categories A1–D).
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€20,000 EV-specific reduction (available only for Category A1).
Note: This relief is subject to the OMV of the vehicle. If the reduction brings the OMV to nil, no BIK charge arises.
Why Source Your EV Through Us?
While we are proud to represent Ford, KIA, Land Rover, MG, Opel, Peugeot, and Volvo, our fleet services have the capability to source any make or model of electric vehicle currently available on the market.
Whether your team has its heart set on a specific German luxury EV, a Japanese city car, or a high-performance model from another manufacturer, we provide the same level of expert sourcing, financing, and maintenance support. You aren't limited to our franchise brands; you get the freedom of choice with the benefit of our professional fleet management.
Practical Example
If an employee selects an electric vehicle from any manufacturer with an OMV of €50,000:
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Reduced OMV: €50,000 - €30,000 (2026 reliefs) = €20,000 taxable base.
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BIK Rate: Based on business mileage, the rate for Category A1 ranges from 6% to 15%.
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The Result: By significantly lowering the taxable base, this creates substantial monthly tax savings for employees compared to traditional vehicles.
Making the Switch
The current tax environment makes it the perfect time to electrify your company fleet, regardless of your preferred brand. Our team is here to help you navigate the BIK calculations and find the exact vehicle that suits your business and your employees' needs.
