Tax-Free Mileage Allowance for an Electric Car in Ireland (2026)
An Irish employer can reimburse the business kilometres an employee drives in their own fully electric car free of tax at up to the Civil Service motor travel rates. Since 1 September 2022 an electric car uses the 1,201cc to 1,500cc column: 43.40c per km for the first 1,500 business km of the calendar year, 79.18c from 1,501 to 5,500 km, 31.79c from 5,501 to 25,000 km and 23.85c above 25,000 km. For 10,000 business km in 2026 the maximum is €5,248.75. Revenue still lists these rates in 2026, and they cover employer payments only.
Which civil service column applies to an electric car?
DPER Circular 16/2022 set the current motor travel rates from 1 September 2022 and placed fully electric cars in the 1,201cc to 1,500cc column, whatever the power of the motor. The circular describes this alignment as a first step towards a single rate for all cars. A hybrid keeps the column of its combustion engine capacity. For comparison, band 2 pays 72.64c per km for cars up to 1,200cc, 79.18c for the electric and 1,201cc to 1,500cc column and 90.63c for cars of 1,501cc and over. Revenue's civil service rates page (published 9 June 2026) and Tax and Duty Manual Part 05-01-06 (reviewed September 2026) still list the 2022 schedule. Circular 16/2022 fixed these rates for three years from September 2022, a period that has now ended, so a new circular could change the electric car rate.
How the kilometre bands add up over the year
The bands follow the employee's cumulative business kilometres from 1 January to 31 December. Each journey fills the remaining room in the current band before the next band starts, so kilometres already reimbursed earlier in the year count toward the thresholds. For 10,000 business km in a fully electric car, the calculation is 1,500 × €0.4340 (€651.00) plus 4,000 × €0.7918 (€3,167.20) plus 4,500 × €0.3179 (€1,430.55), a total of €5,248.75. At 30,000 km the same steps give €651.00 plus €3,167.20 plus 19,500 × €0.3179 (€6,199.05) plus 5,000 × €0.2385 (€1,192.50), a total of €11,209.75. A reduced rate of 23.80c per km applies to journeys linked to the job but not solely to its duties, such as approved courses or conferences. From 1 April 2017 to 31 August 2022 an older schedule applied, with band rates of 39.86c, 73.21c, 29.03c and 22.23c in the 1,201cc to 1,500cc column.
Who can use the civil service rates?
The rates apply to payments an employer makes to an employee or director who uses their own car for business. Employers may pay the Civil Service rates, any lower rate or vouched actual costs, and need Revenue approval to pay more. No approval is needed for the Civil Service schedule where a satisfactory recording and internal control system is in operation. Tax and Duty Manual Part 05-01-06 adds that a taxpayer cannot apply the rates to themselves when claiming from Revenue. An employee reimbursed nothing, or less than the cost, claims the unreimbursed travel expenses with the car expenses and capital allowances form. Sole traders and partners have no flat rate per kilometre: they deduct the business share of their actual motor costs. A company car follows the benefit-in-kind rules, where proven business kilometres lower the taxable percentage.
Records behind a tax-free mileage payment
For each flat-rate payment, Tax and Duty Manual Part 05-01-06 lists the records the employer keeps: the employee's name and address, the date of the journey, its reason, the kilometres travelled, the starting point, destination and finishing point, and the basis of reimbursement. They are kept for six years after the end of the tax year. Since 1 January 2024 employers also report tax-free travel and subsistence payments to Revenue under the Enhanced Reporting Requirements, so each payment needs journey data behind it. Travel between home and the normal place of work is private and never qualifies. Odoproof captures each Tesla journey automatically with its date, distance in kilometres and start and end points, lets you mark it business or private with its purpose, and exports the log your employer needs to support the payment.
Sources
- Civil service rates (motor travel rates, published 9 June 2026) Revenue
- Reimbursement rates Revenue
- Circular 16/2022: Revised Motor Travel Rates Department of Public Expenditure and Reform (published by Revenue)
- Tax and Duty Manual Part 05-01-06 (reviewed September 2026) Revenue
- Private use of employer provided vehicles: overview Revenue
FAQ
Does an electric car get a higher mileage rate than a petrol car?+
It depends on the petrol car's engine size. A fully electric car uses the 1,201cc to 1,500cc column: in band 2 it earns 79.18c per km, against 72.64c for a car up to 1,200cc and 90.63c for a car of 1,501cc and over.
Can I claim the civil service rate from Revenue if my employer pays nothing?+
No. The civil service rates cover employer payments only, and a taxpayer cannot apply them to their own claim. An employee whose employer reimburses nothing, or less than the cost, can claim the unreimbursed travel expenses with the car expenses and capital allowances form.
Do kilometres between home and the office count?+
No. Travel between home and the normal place of work is private use, so it is excluded from the business kilometres your employer reimburses.
Will the electric car rate change?+
Possibly. Circular 16/2022 fixed the rates for three years from September 2022 and announced a single rate for all cars at the next review. Revenue still lists the 2022 rates on its page of June 2026 and in its manual reviewed in September 2026.
Your tax-free mileage depends on business kilometres your employer can verify, journey by journey. Start your 7-day free trial of Odoproof to keep that record automatic and ready for each claim.
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