Why does EV BIK change between 2026 and 2027 in Ireland?

Electric vehicle BIK rates in Ireland are being phased from preferential treatment toward standard rates over several years. The applicable BIK percentage can increase year-on-year.

How much tax can I save with an EV vs a petrol/diesel car?

An EV with €40,000 OMV at 9% BIK rate = €3,600 taxable. A petrol car at 30% = €12,000 taxable. At 52% marginal rate, that's ~€4,368 less tax per year for the EV.

Is EV BIK a fixed percentage?

EV BIK rates depend on CO₂ category and business mileage band, similar to non-EV cars. Always check current-year Revenue rules.

Updated 2026-01-27·10 min read

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Company Car BIK Calculator

Electric Car BIK Ireland — 2026–2027 Guide

Electric cars enjoy preferential BIK rates — but they're phasing up year by year. An EV at 9% BIK saves ~€4,368 vs a petrol car at 30%. Use the Company Car BIK tool to compare across tax years.

Compare EV vs ICE →Cash vs car guide

EV BIK Key Numbers — 2026–2027

EV vs petrol: up to ~€4,368/year tax saving

EV (OMV €40,000, 9% BIK) = €3,600 taxable vs petrol (30% BIK) = €12,000. At 52% rate: ~€4,368 less tax.

EV BIK rates are phasing up

Preferential EV BIK rates are being reduced. The same car in 2027 may have a higher rate than in 2026. Use the year toggle in the calculator.

Compare EV vs ICE across years

Use the Company Car BIK tool to compare EV and petrol/diesel for both 2026 and 2027.

1) Why the year toggle matters for EV BIK

Ireland's EV BIK regime is in transition. Preferential rates are being phased out, meaning the same car can have a different taxable value depending on the tax year. Use the BIK calculator's year toggle to compare.

2) EV vs ICE comparison for 2026

Scenario	OMV	BIK rate	Taxable value	Tax cost (52%)
EV	€40,000	9%	€3,600	~€1,872
Petrol	€40,000	30%	€12,000	~€6,240

3) Safe EV comparison checklist

Keep salary constant, compare only the vehicle scenario.
Use same mileage assumptions for EV and ICE.
Compare one year first, then switch years.
If your lease spans multiple years, model the highest applicable BIK rate.

EV BIK rates are subject to annual Revenue updates. These are estimates for planning purposes.

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