From 1 January 2021, VRT on category A vehicles (passenger cars including SUVs) is calculated using the CO2 emissions produced under the WLTP measuring system. This replaces the New European Driving Cycle (NEDC) measuring system. It will still be possible to register cars measured under the NEDC system by applying a conversion factor prior to registration. The rates of VRT for category A vehicles will also change. 
These details will be available on www.revenue.ie

With the full implementation of the new emissions testing system, WLTP, from January 2021 a new structure of rates and bands for VRT and motor tax. This new structure sees an increase in the number of VRT Bands to 20, with a wider gap between the highest and lowest VRT rate (7% to 37%). 

From 1st January 2021 VRT is based on the WLTP Co2 values, Click HERE for your VRT rate 

The NOx levy that is applied to all VRT category A vehicles (passenger cars, including SUVs) changed with effect from 1 January 2021. The levy is charged cumulatively. 

The €5,000 relief is to be retained in full for all EVs with an open market selling price (OMSP) of up to €40,000. 
Above €40,000, the relief will be reduced by 50% of the OMSP over €40,000. The relief will no longer be available where the OMSP is €50,000 or more.

For private vehicles first registered before the 1st January 2008, motor tax is calculated based on the engine size of the vehicle. 
For private vehicles first registered on or after the 1st July 2008, motor tax is calculated on the vehicles CO2 emission levels.

Motor Tax rates will remain unchanged for all cars in the engine sized regime for cars registered between July 2008 and to the end of 2020 there will be a slight increase. For car registered from 1st January 2021 a new table (below) will apply. 

The following is a list of the current grants available for Battery Electric Vehicle (BEV), Electric Small Public Service Vehicle, tolls and electric charging infrastructure.

Registration Tax Reduction 

• Battery Electric Vehicle (BEV): Up to €5,000 
  The VRT relief for electric vehicles, which was due to end on the 31 December 2025, is being extended by one year to 31 December 2026. 
  

 Tax Benefit Ownership 

Usage Tax 

• BEV: €120 per annum (minimum rate) for BEV.
• PHEVs: €170 per annum (should have CO2 emissions circa 60 g/km or lower, NEDC-2)

Company Cars

Benefit-in-Kind (BIK) Measure (Budget 2026): Original Market Value Deduction for Certain Categories of Vehicles 
The temporary universal reduction to the Original Market Value (OMV) of cars in categories A-D and to all vans, which reduces the amount of BIK payable, is being extended on a tapered basis for three further years of assessment, to end on 31 December 2028. 
The relief will remain at €10,000 for the 2026 year of assessment, reducing thereafter to €5,000 for 2027 and €2,500 for 2028. 

Additionally, the lower limit in the highest mileage band is being permanently reduced from 52,001km to 48,001km from 1 January 2026. 

BIK Rate for Electric Vehicles 
The tables used to calculate BIK liability on employer-provided cars are being amended to incorporate a new category for vehicles with zero emissions. The new A1 category introduces reduced BIK rates for electric vehicles, with rates of 6 to 15%, depending on business mileage. 

Incentives

Purchase incentive for individuals

• BEV's: Up to €3,500 for BEVs
• Up to €3,800 for N1 category BEV - commercial purchases

Charging Network

Electric Vehicle Public Charge Point Grant

• Home charger owner installation grant scheme (up to a value of €300).
• Local Authority Grant Scheme – up to €5k towards on street charging for residential areas that cannot benefit from the Home Charging Installation Grant.

Public Service Vehicle 

Electric Small Public Service Vehicle Grant Scheme (eSPSV24)

• BEV/ FCEV: Up to €10,00
  - Wheelchair accessible up to €12,500
• PHEV Up to €5,000
  - Wheelchair accessible up to €7,500

Administration

The electric vehicle grants are administered by the Sustainable Energy Authority of Ireland (SEAI)   
Browse the entire range of grant-eligible electric cars available in Ireland. Compare performance, savings, emissions, and more. 
View the eligible electric vehicles

The aim of the eSPSV20 Grant Scheme is to increase the uptake of low-emission SPSVs. It is aimed at improving air quality in urban areas, together with influencing the uptake of low-emission passenger cars by improving general perception and awareness of the benefits of low-emission vehicles. 

The SPSV Industry is regarded as a champion in the normalisation of electric vehicle use. 
The Scheme is funded by DTTAS and administered by NTA as the licensing authority for SPSVs