Cycle to Work Scheme 2026: How to Get an E-Bike Tax-Free in Ireland

Ireland’s Cycle to Work Scheme (also called the Bike to Work Scheme) is the single biggest
reason e-bikes are so affordable here — you can buy one out of your gross salary and skip
the tax, PRSI and USC on the cost. Here’s exactly how it works in 2026, how much you can spend on an
electric bike, and how to claim it, based on official Revenue and Citizens Information guidance.

What is the Cycle to Work Scheme?

Under the Cycle to Work Scheme, your employer buys the bike on your behalf and you repay
the cost from your salary over a period of up to 12 months. Because the repayments come
out of your gross pay — before income tax, PRSI and the Universal Social Charge (USC) —
you effectively get the bike at a substantial discount. The bike and equipment must be mainly for
qualifying journeys: getting to and from work.

Sources:
Citizens Information — Cycle to Work Scheme,
Revenue — Cycle to Work Scheme.

2026 spending limits

The maximum spend (including related safety equipment) depends on the type of bike:

E-bikes / pedelecs: up to €1,500.
Standard (non-electric) bicycles: up to €1,250.
Cargo and e-cargo bikes: up to €3,000.

You can use the scheme once every four years. (For example, if you buy a bike at any
point in 2026, your next exemption is available in 2030.)

How much you actually save

Because you pay for the bike from gross salary, your saving equals the tax, PRSI and USC you would
otherwise have paid on that amount. For a higher-rate taxpayer this can mean roughly half
the cost of the bike — turning a €1,500 e-bike into a much smaller net outlay spread over up to a year.
Your exact saving depends on your personal tax situation.

The key rules

Your employer must pay for the bike. The exemption does not apply if you buy
the bike yourself and your employer reimburses you.
You must sign a written agreement stating the bike is for your own use on qualifying
journeys to and from work.
The exemption can be used once every four years.
Repayments are made by salary sacrifice over up to 12 months and are free of income
tax, PRSI and USC.

Source:
Revenue — Cycle to Work Scheme rules.

How to apply, step by step

Person commuting by electric bike — Commuting by e-bike is exactly what the Cycle to Work Scheme is designed for.

Check your employer offers the scheme and ask how they administer it.
Choose your e-bike and equipment up to the €1,500 limit.
Your employer pays the supplier directly.
Sign the salary-sacrifice agreement for repayments of up to 12 months.
Collect your bike and start saving on your commute.

Ready to choose? Browse our range of
electric bikes in Ireland, and see our
dedicated Cycle to Work page for more detail. Remember that
only road-legal pedal-assist e-bikes (250 W, assistance up to 25 km/h) qualify and are treated as
bicycles.

Frequently asked questions

How much can I spend on an e-bike under the Cycle to Work Scheme?

Up to €1,500 including related safety equipment for an e-bike or pedelec.

How often can I use the scheme?

Once every four years.

Do I pay tax on the bike?

No. Repayments come from gross salary, so you don’t pay income tax, PRSI or USC on the cost.

Can I buy the bike myself and get reimbursed?

No. Your employer must buy the bike directly — the exemption doesn’t apply to reimbursements.

Does the e-bike have to meet any rules?

Yes. It should be a road-legal pedal-assist e-bike (up to 250 W, assistance cutting out at 25 km/h),
which Irish law treats as a bicycle.