Annual BIK Tax

€0

Monthly BIK Tax

€0

Company Car Net

€0

BIK Rate

0.0%

Company Car Benefit-in-Kind (BIK) Calculator

Tax Year 2026

Estimate the tax impact of a company car and compare it with a cash allowance. Results are scenario-based and depend on your inputs.

About this calculator

A company car is a taxable benefit in kind (BIK) in Ireland, with the amount depending on the car’s original market value, CO₂ emissions, and your annual business mileage. This calculator estimates your BIK liability.

Enter the car’s value, CO₂ emissions, and your annual business and personal mileage. The tool calculates the taxable BIK amount and the resulting income tax, USC, and PRSI you’ll pay, helping you compare the cost of a company car versus a personal car allowance.

Mode

Compare company car vs cash allowance

Popular cars

Car details

OMV (€)

Business mileage (km/yr)

Type

CO₂ category

Electric vehicle (A1)

Your details

Annual salary (€)

Higher-rate band — BIK taxed at 40%

Marital status

Options

Cash allowance (€/yr)€5,000

€0€30k

Fuel

Months

Pool car

Result

Auto-updates after you change inputs. Switch years to view the 2025–2027 estimate for the same inputs.

Recommended Next Step: Cash vs Company Car Guide

Electric vs Petrol/Diesel: BIK Trends

The BIK landscape is shifting dramatically as electric vehicle incentives phase in:

2026 EV

BIK rate: 25% of OMV (down from 30% in 2025)

2027 EV

Drops further to 22.5% — potential saving of €475/yr on a €40k OMV

Petrol/Diesel (A1)

Fixed at 36.5% — no planned reduction. EV becomes cheaper annually.

Related Tools

See how your company car fits into your full financial picture.

💰 Bonus Calculator 📊 Salary Breakdown 📦 Total Compensation ⚡ EV BIK Guide

How it works

1) OMV + CO₂

The Original Market Value and CO₂ band determine the BIK percentage (A1 → I).

2) Mileage modifier

Higher business mileage reduces the effective BIK rate (4 mileage bands).

3) Breakdown

Additional PAYE, USC and PRSI are returned separately to make trade-offs clearer.

4) Compare

If you enter a cash allowance, we estimate the net take-home for that cash scenario.

Key Takeaways

BIK is taxable pay

A company car can increase your taxable base, which can increase PAYE, USC and PRSI.

Mileage changes outcomes

Business mileage bands can change the BIK rate. Keep records if your band is close.

Compare scenarios

Cash allowance and company car packages can look similar on paper but differ in take-home.

Quick Answer

This calculator estimates company car Benefit-in-Kind (BIK) tax in Ireland and, if you enter an allowance, helps compare a cash allowance vs a company car as scenarios. Results depend on OMV, CO₂ category, business mileage, and tax-year provisions.

Worked Examples

⚡ Tesla Model 3 (Electric)

OMV: €45,000

BIK rate: varies by mileage band (9%–30%)

EV preferential rate applies through 2025–2027

PAYE + USC + PRSI estimated from the calculator

🚗 BMW 3 Series (Petrol)

OMV: €40,000

CO₂: ~140 g/km — higher BIK band than EV

Taxable benefit: depends on mileage band and CO₂ category

Compare cash allowance scenario in the calculator

🔋 Volkswagen ID.4 (Electric)

OMV: €50,000

EV category — preferential rate

Business mileage: higher band → lower BIK rate

Year switch: compare 2025 vs 2026 vs 2027 estimates

🚐 Ford Transit (Van)

OMV: €35,000

Van classification: flat BIK rate concept applies

Treatment can differ from standard company car BIK

Use the calculator with "Van" mode selected

These are illustrative estimates. Your actual BIK depends on exact OMV, vehicle category, business mileage, and tax-year provisions. Use the calculator above for your specific inputs.

OMV and the taxable benefit base

The calculation starts with an OMV figure. The taxable benefit value is derived from OMV and the applicable BIK rate for your scenario. If you do not have an exact OMV, use a reasonable estimate and treat the output as a planning estimate.

Read the OMV guide

Taxable benefit value ≈ Adjusted OMV × BIK rate

The calculator then estimates how payroll deductions change when that taxable value is added to your pay base.

Business mileage bands (why records matter)

BIK rates can vary by annual business mileage bands. If your mileage is close to a band boundary, small changes in recorded mileage can change the effective rate used in the estimate.

Read the mileage bands guide

Track business kilometres consistently across the year
Keep dates and business purpose alongside distances
Re-run the calculator if your mileage band changes

CO₂ category and the BIK rate

CO₂ category can change the BIK rate used in the statutory method. If you are choosing between vehicles, model both CO₂ categories with the same salary and mileage assumptions.

Read the CO₂ categories guide

Practical tip

If you are comparing an EV and a non-EV option, compare within the same year first, then switch years.

Electric vehicles and year-to-year changes

For EV scenarios, year-specific provisions can change the effective taxable base over time. Use the year switch to see how the estimate changes for the same inputs across the 2025–2027 planning window.

Read the electric car BIK guide (2026–2027)

Practical tip

If you are comparing an EV vs non-EV package, compare both in the same year view first, then switch years.

Vans and the 8% concept

Vans can be treated differently to company cars for BIK. Many people refer to “van BIK 8%” as shorthand for a flatter approach, but the outcome depends on classification and payroll treatment.

Read the van BIK 8% guide

Practical tip

If you are offered a van, confirm how it will be classified for BIK on your payslip before relying on a rule of thumb.

Employee contributions (when you pay towards the car)

If you pay your employer for the use of the car, it can change the effective value of the benefit. In some payroll treatments it can reduce the taxable benefit value, but you should confirm the handling with your employer.

Read the employee contributions guide

Practical tip

When comparing offers, include your contribution as an explicit cost alongside the estimated BIK tax.

Cash allowance vs company car (scenario checklist)

Use this checklist to keep comparisons fair:

Read the cash allowance vs company car guide

Keep salary constant and change only one benefit at a time
Compare net take-home estimates, not just gross package cost
Re-check if your marginal position changes (promotion, bonus, pension)
Validate against payslips if you already receive a car or allowance

Recommended next steps

Use these tools and guides to validate assumptions and compare your wider compensation package.

Net Salary Calculator

Baseline take-home pay estimate before adding benefits.

Cash vs Company Car

A practical scenario workflow for comparing offers.

Electric Car BIK (2026–2027)

Why EV estimates can change year-to-year and how to compare safely.

How do I find the OMV used for company car BIK in Ireland?

BIK is calculated using an Original Market Value (OMV) figure as defined under Irish rules. In practice, the relevant OMV can depend on how the vehicle is classified and how the statutory method applies to your scenario. If you are unsure, use a reasonable OMV estimate and treat the result as planning only.

Does company car BIK affect PAYE, USC, and PRSI?

Often yes. A taxable benefit can increase the taxable pay base used for payroll deductions, which can increase PAYE, USC, and PRSI depending on your year-to-date position and payroll setup.

How do business mileage bands change the BIK rate?

Company car BIK rates can vary by annual business mileage bands. Moving into a higher business mileage band can reduce the BIK rate for some categories, but the outcome depends on your vehicle category and the statutory table for the relevant year.

What mileage records should I keep for BIK?

Keep consistent records that support your business mileage claim (dates, distance, and business purpose). Evidence expectations can vary by employer process and how Revenue guidance is applied in practice.

Is van BIK always 8% in Ireland?

Company vans are commonly treated with a flat BIK rate under Irish rules, but classification and payroll handling matter. If your vehicle is treated as a van for BIK purposes, the tax treatment can differ from a standard company car calculation.

Why does the estimate change between 2025, 2026, and 2027?

The calculator includes a year switch to reflect a 2025–2027 planning view where year-specific provisions can change the taxable base or rate. Use the year switch to compare scenarios rather than relying on a single rule of thumb.

Cash allowance vs company car: how do I compare fairly?

A cash allowance is typically taxed as pay. A company car creates a taxable benefit. Compare both scenarios using the same salary and then treat the difference in take-home as an estimate that depends on your payroll and circumstances.

If I contribute towards the car cost, can it reduce BIK?

In some payroll treatments, employee contributions can reduce the taxable benefit value. Confirm how your employer processes contributions and how it interacts with BIK reporting in your payslip.

How does a CO₂ category affect the BIK rate?

Your vehicle CO₂ category can influence the BIK rate applied in the statutory method. If you are comparing vehicles, treat CO₂ category as a scenario input and compare estimates rather than relying on general rules.

Is this an official or exact tax figure?

No. This is an estimate for planning. Payroll basis, credits, and personal circumstances can change the real outcome. Validate against your payslip if you already receive a company car benefit.

What is the difference between “taxable benefit value” and the real running cost of the car?

BIK is based on a statutory taxable value calculation, not your real fuel, insurance, or maintenance spend. Your tax cost and real-world running costs can move differently.

Loading Tools

Electric vs Petrol/Diesel: BIK Trends

The BIK landscape is shifting dramatically as electric vehicle incentives phase in:

2026 EV

BIK rate: 25% of OMV (down from 30% in 2025)

2027 EV

Drops further to 22.5% — potential saving of €475/yr on a €40k OMV

Petrol/Diesel (A1)

Fixed at 36.5% — no planned reduction. EV becomes cheaper annually.

How it works

1) OMV + CO₂

The Original Market Value and CO₂ band determine the BIK percentage (A1 → I).

2) Mileage modifier

Higher business mileage reduces the effective BIK rate (4 mileage bands).

3) Breakdown

Additional PAYE, USC and PRSI are returned separately to make trade-offs clearer.

4) Compare

If you enter a cash allowance, we estimate the net take-home for that cash scenario.

Key Takeaways

BIK is taxable pay

A company car can increase your taxable base, which can increase PAYE, USC and PRSI.

Mileage changes outcomes

Business mileage bands can change the BIK rate. Keep records if your band is close.

Compare scenarios

Cash allowance and company car packages can look similar on paper but differ in take-home.

Worked Examples

⚡ Tesla Model 3 (Electric)

OMV: €45,000

BIK rate: varies by mileage band (9%–30%)

EV preferential rate applies through 2025–2027

PAYE + USC + PRSI estimated from the calculator

🚗 BMW 3 Series (Petrol)

OMV: €40,000

CO₂: ~140 g/km — higher BIK band than EV

Taxable benefit: depends on mileage band and CO₂ category

Compare cash allowance scenario in the calculator

🔋 Volkswagen ID.4 (Electric)

OMV: €50,000

EV category — preferential rate

Business mileage: higher band → lower BIK rate

Year switch: compare 2025 vs 2026 vs 2027 estimates

🚐 Ford Transit (Van)

OMV: €35,000

Van classification: flat BIK rate concept applies

Treatment can differ from standard company car BIK

Use the calculator with "Van" mode selected

These are illustrative estimates. Your actual BIK depends on exact OMV, vehicle category, business mileage, and tax-year provisions. Use the calculator above for your specific inputs.

Company Car Benefit-in-Kind (BIK) Calculator

Electric vs Petrol/Diesel: BIK Trends

Related Tools

How it works

Key Takeaways

Worked Examples

Frequently Asked Questions

How do I find the OMV used for company car BIK in Ireland?

Does company car BIK affect PAYE, USC, and PRSI?

How do business mileage bands change the BIK rate?

What mileage records should I keep for BIK?

Is van BIK always 8% in Ireland?

Why does the estimate change between 2025, 2026, and 2027?

Cash allowance vs company car: how do I compare fairly?

If I contribute towards the car cost, can it reduce BIK?

How does a CO₂ category affect the BIK rate?

Is this an official or exact tax figure?

What is the difference between “taxable benefit value” and the real running cost of the car?

Company Car Benefit-in-Kind (BIK) Calculator

Electric vs Petrol/Diesel: BIK Trends

Related Tools

How it works

Key Takeaways

Worked Examples

Frequently Asked Questions

How do I find the OMV used for company car BIK in Ireland?

Does company car BIK affect PAYE, USC, and PRSI?

How do business mileage bands change the BIK rate?

What mileage records should I keep for BIK?

Is van BIK always 8% in Ireland?

Why does the estimate change between 2025, 2026, and 2027?

Cash allowance vs company car: how do I compare fairly?

If I contribute towards the car cost, can it reduce BIK?

How does a CO₂ category affect the BIK rate?

Is this an official or exact tax figure?

What is the difference between “taxable benefit value” and the real running cost of the car?