How is BIK on an EV applied over several years?
The €45,000 BIK relief is applied once in 2025 on the purchase of an electric vehicle, therefore does the same relief of €45,000 remain valid on the same electric vehicle in future years?
BernardMcManusAug 2025 Filed under: taxation
Expert answer
Hi Bernard,
I'm afraid not. While the value of the car for the calculations does not 'depreciate', the relief for EVs will taper as per a schedule already announced by Revenue. So it's €45,000 this year (actually made up of an initial €35,000 and an additional €10,000 change), but the relief drops to just €20,000 for 2026 and €10,000 for 2027.
So, for example, if the EV in question had an OMV (Open Market Value) of €45,000 this year, the taxable value would drop to zero, as would the BIK. But next year, the taxable value would be €45,000 minus €20,000 - i.e. €25,000.
And for 2027 the taxable value would be €35,000.
Assuming everything else is staying the same with regards to the mileage bracket, then your BIK tax would increase steadily from 2025 to 2028.
Shane O' Donoghue - Complete Car Advisor