Mileage Allowance Ireland 2026 — Civil Service Rates, Revenue Rules & Tax Relief Guide

What Is Mileage Allowance in Ireland?

Mileage allowance in Ireland refers to the tax-free payments made by employers to employees who use their own vehicle for business travel. The rates are set by the Civil Service and adopted by Revenue as the benchmark for allowable mileage payments.

If your employer pays less than the Civil Service rate, you can claim tax relief on the difference. If they pay more, the excess is treated as a taxable Benefit in Kind (BIK).

Use our Mileage Allowance Calculator to instantly work out your allowance, employer shortfall, and tax relief for Irish Civil Service rates.

Civil Service Mileage Rates for 2026

Irish Civil Service mileage rates are based on engine size. Each band has a higher rate for the first 6,437 km (~4,000 miles) and a lower rate thereafter:

Motorcycle Rate

Motorcycles have a flat rate of 24c per kilometre with no mileage threshold.

Bicycle Rate

Business cycling is reimbursed at 8c per kilometre with no threshold.

What Counts as Business Travel in Ireland?

Revenue defines business travel as journeys undertaken in the course of employment that are not ordinary commuting.

✅ Qualifies as Business Travel

• Travelling to a client meeting or customer site
• Visiting suppliers or contractors
• Travel between multiple work locations
• Attending conferences, training, or off-site meetings
• Travel to a temporary workplace (less than 12 months)

❌ Does NOT Qualify

• Ordinary commuting from home to your permanent workplace
• Personal or social journeys
• Detours for personal errands during a business trip

How the 6,437 km Threshold Works

The threshold of 6,437 km (4,000 miles) resets each tax year. If you exceed this, the lower rate applies to all additional kilometres for that year.

Example: 10,000 km in a 1201-1500cc car

Revenue Advisory Fuel Rates (Company Cars)

If you drive a company car and your employer pays for fuel, the Civil Service rates don't apply. Instead, Revenue publishes advisory fuel rates that vary by engine size and fuel type:

Electric vehicles have a flat advisory rate of approximately 9c per kilometre.

Employer Reimbursement: What Happens When Your Employer Pays

Scenario A: Employer Pays Less Than Civil Service Rate

If your employer pays 30c/km and the Civil Service rate is 49c/km, you have a shortfall of 19c/km. You can claim tax relief on this shortfall.

On 10,000 km (1201–1500cc, 49c/30c split):

• Revenue allowance: €4,223
• Employer pays (30c/km flat): €3,000
• Shortfall: €1,223
• Tax relief at 20%: €245
• Tax relief at 40%: €489

Scenario B: Employer Pays More Than Civil Service Rate

If your employer pays 60c/km and the Civil Service rate is 49c/km, the excess 11c/km is taxable as BIK.

How to Claim Mileage Tax Relief in Ireland

If your employer pays less than the Civil Service rates, follow these steps to claim relief:

Step 1: Check Your Employer's Rate

Your employer's mileage rate should be stated in your employment contract or expense policy. Check your payslips or expense reimbursements to confirm the rate being paid.

Step 2: Calculate the Shortfall

Use our Mileage Allowance Calculator to determine the difference between the Revenue allowance and what your employer actually pays.

Step 3: Claim Through Revenue

• PAYE employees: Claim through Revenue's myAccount service or in your annual Form 12
• Self-employed: Include the claim in your Form 11 annual return
• Relief is at your marginal tax rate (20% or 40%)

Mileage Allowance for Self-Employed in Ireland

Self-employed individuals in Ireland can claim mileage expenses at the Civil Service rates. Alternatively, you can claim actual vehicle expenses apportioned for business use:

• Civil Service method: Flat rate per km, no need to track individual expenses
• Actual expenses method: Track all vehicle costs (fuel, insurance, tax, servicing, depreciation) and claim the business-use percentage

The actual expenses method requires more record-keeping but may give a higher deduction if you have high running costs or an expensive car.

Record Keeping Requirements

Revenue can request to see your mileage records for up to 6 years. You need to keep:

• Date of each journey
• Start and end addresses
• Business purpose of the journey
• Kilometres driven
• Vehicle registration or details

Electronic logs (apps, spreadsheets) are accepted by Revenue. Pen-and-paper logs are also acceptable.

Summary

Frequently Asked Questions

What are the Irish mileage rates for 2026?

Civil Service rates for 2026: Up to 1200cc — 41c/km (first 6,437 km), 25c/km thereafter. 1201-1500cc — 49c/30c. 1501-2000cc — 55c/35c. Over 2000cc — 65c/40c. Motorcycles: 24c/km. Bicycles: 8c/km.

How do I claim mileage allowance in Ireland?

If your employer pays less than Civil Service rates, claim tax relief through Revenue's myAccount service (PAYE) or Form 11 (self-employed). The relief is at your marginal tax rate of 20% or 40%.

Can I claim mileage without a logbook?

Revenue requires a logbook with date, start/end addresses, business purpose, kilometres driven, and vehicle details. Without this, your claim may be rejected. Start your log from day one.

Do I pay tax on employer mileage payments in Ireland?

Payments up to Civil Service rates are tax-free. Any excess over these rates is taxable as BIK and must be reported to Revenue through your employer's payroll or your annual tax return.

What is the mileage threshold for Irish civil service rates?

The threshold is 6,437 km (~4,000 miles) per tax year. Below this, the higher first-band rate applies. Above this, the lower second-band rate applies for all additional kilometres.

Is commuting eligible for mileage allowance in Ireland?

No. Ordinary commuting between home and your permanent workplace is not allowable. Only business travel — journeys undertaken in the course of your employment — qualifies for mileage allowance.