Understanding New Car Tax in Ireland: A Comprehensive Guide for 2025
Purchasing a new car in Tax Ireland involves navigating a range of taxes and charges that can significantly impact the overall cost. In 2025, the Irish government introduced several measures affecting Vehicle Registration Tax (VRT), Motor Tax, and incentives for electric vehicles (EVs). This guide provides a detailed overview of these taxes, helping prospective car buyers make informed decisions.
What Is Vehicle Registration Tax (VRT)?
VRT Rates for 2025
As per the latest updates, the VRT rates for passenger vehicles are structured based on CO₂ emissions as follows:
CO₂ Emissions (g/km) VRT Rate 0–507.00%51–809.00%81–859.75%86–9010.50%91–9511.25%96–10012.00%101–10512.75%106–11013.50%111–11515.25%116–12016.00%121–12516.75%126–13017.50%131–13519.25%136–14020.00%141–14521.50%146–15025.00%151–15527.50%156–17030.00%171–19035.00%Over 19141.00%
Motor Tax in Ireland
The amount is determined by the vehicle’s CO₂ emissions and engine size.
Also Read:FintechZoom SP500
Motor Tax Rates for 2025
CO₂ Emissions (g/km) Annual Tax (€) 0–8012081–100150101–110170111–120180121–130200131–140225141–150250151–160280161–170315171–180355181–190390191–200430Over 200460
These rates are applicable to passenger cars. For commercial vehicles, different rates apply.
Incentives for Electric Vehicles (EVs)
VRT Relief for EVs
Benefit-in-Kind (BIK) Tax Relief
For company car users, the BIK tax relief for EVs has been extended:
- €45,000 threshold in 2024.
- €35,000 threshold in 2025.
- €20,000 threshold in 2026.
- €10,000 threshold in 2027.
This reduction in the BIK threshold encourages businesses to choose EVs for their fleets.
Nitrogen Oxide (NOx) Levy
Importing a Car into Ireland
- Customs Duty.
- NOx Levy.
Failure to register within 30 days can result in the vehicle being seized.
Conclusion
Understanding the various taxes and incentives associated with purchasing a new car in Ireland is crucial for making an informed decision. By considering
FAQs
Are there any exemptions from motor tax?
Exemptions include vehicles used solely for agricultural purposes, certain electric vehicles, and vehicles used by disabled persons.
Can I claim back VRT if I export my car?
Are there any grants available for purchasing electric vehicles?
Yes, the Sustainable Energy Authority of Ireland (SEAI) offers grants for purchasing new electric vehicles.
How do I register a car in Ireland?
To register a car, you must complete a VRT declaration at an NCT center, pay the VRT due, and obtain a Vehicle Registration Certificate.