Ireland
Mileage allowance calculator for Ireland: Civil Service rates in 2026
In 2026 an Irish employer can reimburse the business kilometres an employee drives in their own fully electric car free of tax at up to 43.40c, 79.18c, 31.79c and 23.85c per km, the Civil Service motor travel rates in force since 1 September 2022. Each rate covers a band of the employee's business kilometres over the calendar year, so 10,000 km gives a maximum of €5,248.75. A company car falls under the benefit-in-kind rules instead.
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Estimate the tax-free mileage allowance for a fully electric car
Enter a distance to see the estimate.
No official rate exists for this choice.
Maximum tax-free reimbursement from your employer
€5,248.75
Breakdown by kilometre band
- Up to 1,500 km1,500 km × 0.4340 €651.00
- Over 1,500 km and up to 5,500 km4,000 km × 0.7918 €3,167.20
- Over 5,500 km and up to 25,000 km4,500 km × 0.3179 €1,430.55
Civil Service rate schedule From 1 September 2022
How the mileage allowance and company-car BIK are calculated in Ireland
Civil Service motor travel rates from 1 September 2022
An employer can reimburse an employee or director who uses their own car for business free of tax, on business kilometres only. Employers may use the Civil Service motor travel rates set by DPER Circular 16/2022, any lower rate, or the vouched actual costs, and need Revenue approval to pay above the Civil Service schedule. No approval is needed for that schedule where a satisfactory recording and internal control system is in operation. Revenue still lists these rates on its civil service rates page (published 9 June 2026) and in Tax and Duty Manual Part 05-01-06 (reviewed September 2026).
Formula
Allowance = km in band 1 × band 1 rate + km in band 2 × band 2 rate + km in band 3 × band 3 rate + km in band 4 × band 4 rate (+ km at the reduced rate × reduced rate)
| Business km in the calendar year | Up to 1,200cc | 1,201cc to 1,500cc and fully electric | 1,501cc and over |
|---|---|---|---|
| Band 1: 0 to 1,500 km | 41.80c | 43.40c | 51.82c |
| Band 2: 1,501 to 5,500 km | 72.64c | 79.18c | 90.63c |
| Band 3: 5,501 to 25,000 km | 31.78c | 31.79c | 39.22c |
| Band 4: 25,001 km and over | 20.56c | 23.85c | 25.87c |
| Reduced rate (journeys linked to the job but not solely to its duties, such as approved courses) | 21.23c | 23.80c | 25.96c |
Conditions
- Only for a car the employee or director owns and uses for business. An employer-provided car falls under benefit-in-kind.
- Bands follow the employee's cumulative business kilometres from 1 January to 31 December, so kilometres already reimbursed earlier in the year count toward the thresholds.
- Above 25,000 km in the year, every further kilometre uses the band 4 rate.
- Travel between home and the normal place of work is private use and never counts as business kilometres.
- These rates cover payments by an employer to an employee or director. A taxpayer cannot apply them to their own claim to Revenue (Tax and Duty Manual Part 05-01-06).
- Sole traders and partners have no flat rate per kilometre and deduct the business share of their actual motor costs.
Official 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
Electric and hybrid cars
Since 1 September 2022 a fully electric car uses the 1,201cc to 1,500cc column, whatever the power of its motor. Circular 16/2022 aligned the electric car rate with this middle category as a first step towards a single rate for all cars. A hybrid uses the column of its combustion engine capacity. The circular fixed the rates for three years from September 2022. Revenue still lists the 2022 rates in its pages of June and September 2026, and a later circular could change the electric car rate.
Formula
10,000 business km in 2026: 1,500 × €0.4340 + 4,000 × €0.7918 + 4,500 × €0.3179 = €651.00 + €3,167.20 + €1,430.55 = €5,248.75
| Business km in the year (fully electric car, rates from 1 September 2022) | Maximum tax-free allowance |
|---|---|
| 1,500 km | €651.00 |
| 5,500 km | €3,818.20 |
| 10,000 km | €5,248.75 |
| 25,000 km | €10,017.25 |
| 30,000 km | €11,209.75 |
Conditions
- Battery electric cars only: a hybrid follows the capacity of its combustion engine.
- Each journey fills the remaining room in the current band, taking trips in date order over the calendar year.
Official sources
- Civil service rates (motor travel rates, published 9 June 2026) 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
Previous schedule: 1 April 2017 to 31 August 2022
Journeys made between 1 April 2017 and 31 August 2022 use the earlier Civil Service schedule, with the same kilometre bands. Tax and Duty Manual Part 05-01-06 reproduces it in its Appendix 2.
| Business km in the calendar year | Up to 1,200cc | 1,201cc to 1,500cc | 1,501cc and over |
|---|---|---|---|
| Band 1: 0 to 1,500 km | 37.95c | 39.86c | 44.79c |
| Band 2: 1,501 to 5,500 km | 70.00c | 73.21c | 83.53c |
| Band 3: 5,501 to 25,000 km | 27.55c | 29.03c | 32.21c |
| Band 4: 25,001 km and over | 21.36c | 22.23c | 25.85c |
| Reduced rate | 16.59c | 17.63c | 18.97c |
Official sources
Records and reporting to Revenue
For each flat-rate mileage payment 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. These records are kept for six years after the end of the tax year. Since 1 January 2024 employers report tax-free travel and subsistence payments to Revenue under the Enhanced Reporting Requirements (section 897C TCA 1997).
Conditions
- Self-employed records are also kept for six years.
Official sources
Company electric car: benefit-in-kind rates
An employer-provided car available for private use creates a taxable benefit, collected through payroll (Income Tax, PRSI and USC). The cash equivalent is a percentage of the car's Original Market Value (OMV) after the reductions of the year, and the percentage falls as the employee's annual business kilometres rise. Since 1 January 2026 a 0 g/km car sits in category A1. For 2023 to 2025 an electric car sat in category A. Without records of business and private use, the employer may assume 8,000 km are private.
Formula
Cash equivalent = (OMV − OMV reductions of the year, not below zero) × band rate (× 80% with the low business kilometres relief) × days available ÷ 365 − employee payments for running costs
| Annual business km | Category A1 (0 g/km), from 1 January 2026 | Category A (electric car), 2023 to 2025 |
|---|---|---|
| 0 to 26,000 | 15% | 22.5% |
| 26,001 to 39,000 | 12% | 18% |
| 39,001 to 48,000 | 9% | 13.5% |
| 48,001 and above | 6% | 9% |
Conditions
- The band depends on the employee's business kilometres in the car over the calendar year.
- For a car available for part of the year, Revenue annualises business kilometres (km × 365 ÷ days available) to pick the band, then multiplies the cash equivalent by days available ÷ 365.
- Payments the employee makes directly to the employer for running costs reduce the cash equivalent.
- OMV is the list price at first registration in Ireland, including VAT and VRT, even for a second-hand car.
- A workplace charge point open to all employees is exempt. Since 1 January 2025 an employer-owned charge point at the employee's main residence is exempt too when the employee has private use of the employer's electric car.
- Employers review notional pay at least quarterly, as Revenue asks.
Official sources
OMV reductions for an electric company car, 2023 to 2029
Revenue deducts the reductions of the year from the OMV before applying the band rate. The standard reduction applies only to cars in categories A1 to D, and a category E car (above 179 g/km) receives none. Battery electric cars, new or used, also receive the EV relief. Budget 2027, announced on 6 October 2026, lists no benefit-in-kind measure in its tax policy summary, so the scheduled taper stands.
Formula
Electric car, OMV €55,000, 23,000 business km: 2026 (€55,000 − €30,000) × 15% = €3,750; 2027 (€55,000 − €15,000) × 15% = €6,000
| Year | Standard reduction (categories A1 to D only) | EV relief (battery electric only) | Total for an electric car |
|---|---|---|---|
| 2023 to 2025 | €10,000 | €35,000 | €45,000 |
| 2026 | €10,000 | €20,000 | €30,000 |
| 2027 | €5,000 | €10,000 | €15,000 |
| 2028 | €2,500 | none | €2,500 |
| 2029 | none | none | none |
Conditions
- Hybrids are excluded from the EV relief.
- After the reductions, the taxable OMV cannot fall below zero.
Official sources
- Exemptions and reductions (electric vehicles) Revenue
- How to calculate the taxable benefit (published 19 January 2026) Revenue
- Budget 2027: Tax Policy Changes Summary Department of Finance (gov.ie)
- Budget information (Budget 2027, 6 October 2026) Revenue
Low business kilometres relief (20%)
The cash equivalent is reduced by 20% when the employee meets all of the conditions below. Category A1 electric cars qualify like any other car.
Formula
Electric car, OMV €55,000, 23,000 business km, 2027: (€55,000 − €15,000) × 15% × 80% = €4,800
Conditions
- At least 8,000 and no more than 24,000 business km in the year.
- An average of at least 20 hours of work a week.
- At least 70% of working time spent away from the employer's premises.
- A logbook with details of business kilometres and work purposes.
Official sources
Self-employed: business share of actual costs
Sole traders and partners have no flat rate per kilometre. For a car used for business and private purposes they deduct only the business part of motor expenses, which Revenue normally derives from business kilometres over total kilometres. Capital allowances on the car are restricted to the business proportion as well. Records are kept for six years.
Formula
Deductible running costs = running costs × business km ÷ total km
Official sources
Frequently asked questions
What is the civil service mileage rate for an electric car in Ireland?
A fully electric car uses the 1,201cc to 1,500cc column of the Civil Service motor travel rates, in force since 1 September 2022: 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.
How much tax-free mileage can my employer pay for 10,000 km?
Up to €5,248.75 in a fully electric car: 1,500 km at 43.40c (€651.00), 4,000 km at 79.18c (€3,167.20) and 4,500 km at 31.79c (€1,430.55). Kilometres already reimbursed earlier in the calendar year count toward the bands.
Can I claim the civil service mileage rates from Revenue myself?
No. The rates apply only to payments an employer makes to an employee or director, and a taxpayer cannot apply them to their own claim. An employee reimbursed nothing, or less than the cost, can claim the unreimbursed travel expenses with Revenue's car expenses and capital allowances form.
Does driving from home to the office count as business mileage?
No. Revenue treats travel between home and the normal place of work as private use, so those kilometres are excluded from the mileage allowance and from the business kilometres that set a company car's BIK band.
Can I get the mileage allowance for a company Tesla?
No. The Civil Service rates reimburse the use of the employee's own car. An employer-provided Tesla is taxed as benefit-in-kind: in 2026 its cash equivalent ranges from 15% to 6% of the OMV after a €30,000 reduction, depending on business kilometres.