Cycle to Work Scheme Ireland 2026: Save up to 52% on Your E-Bike

Thinking about buying an electric bike in 2026? The Cycle to Work Scheme is one of the most generous tax incentives available to PAYE employees in Ireland, and it can shave more than half off the real cost of your new e-bike.

In 2026 the scheme allows you to spend up to €1,500 on an electric bike (or €3,000 on a cargo bike) entirely through gross salary deductions. That means no Income Tax, no USC and no PRSI on the portion of your wages used to buy the bike. Depending on your tax band, you can save up to 52% of the retail price — that’s up to €780 off a €1,500 e-bike.

This complete 2026 guide explains who is eligible, what limits apply, how to apply step-by-step, how much you’ll really save, and which VĀSIK electric bikes qualify.

The Cycle to Work Scheme is a Revenue-approved tax incentive that lets employees in Ireland buy a bicycle and safety equipment through their employer. The cost is repaid through gross salary deductions, normally spread over 12 months.

Because the deductions come off your gross pay (not your net), you avoid paying Income Tax, the Universal Social Charge (USC) and Pay Related Social Insurance (PRSI) on the value of the bike. Depending on your marginal tax rate, this translates into a saving of between 28% and 52% of the retail price.

The scheme is operated by your employer and is available to anyone on PAYE. Self-employed individuals and people not on PAYE are unfortunately not eligible. There are no special application forms to submit to Revenue — your employer handles everything.

The Cycle to Work Scheme has three distinct spending limits in 2026, depending on the type of bike you choose:

• €1,250 — Standard pedal bicycle plus safety equipment
• €1,500 — Electric bike (e-bike) plus safety equipment
• €3,000 — Cargo bike (electric or pedal-only) plus safety equipment

Safety equipment includes helmets, lights, locks, reflective clothing, mirrors, mudguards, panniers and luggage carriers, pumps, repair kits and child seats. Bike accessories not directly related to safety (such as cycle computers) are excluded.

If you choose a bike that costs less than the limit, you keep the unused tax relief, but you cannot top up with personal cash to exceed the cap and still claim full tax benefits on the excess.

The saving depends on your marginal tax rate. For most full-time employees in Ireland, this works out as follows:

• Higher rate taxpayer (40% Income Tax + 8% USC + 4% PRSI = 52% combined): you save 52% of the bike’s value.
• Standard rate taxpayer (20% Income Tax + 4% USC + 4% PRSI = 28% combined): you save 28%.

Concrete example for a €1,500 e-bike at the higher rate:

• Retail price: €1,500
• Tax saving (52%): €780
• Net cost to you: €720
• Spread over 12 monthly deductions: €60 per month from gross salary

For a €3,000 cargo e-bike at the higher rate, the saving climbs to €1,560, bringing the real out-of-pocket cost down to €1,440. Few other purchases in Ireland offer this level of tax-efficient access to premium transport.

The scheme is open to:

• Employees paying PAYE in Ireland, including private sector, public sector and HSE staff.
• Directors of companies, provided they are also on PAYE.
• Both full-time and part-time employees, with no minimum service requirement at most employers.

Excluded categories include:

• Self-employed sole traders not on PAYE.
• People receiving social welfare payments only.
• Anyone who has already used the scheme within the previous four tax years.

The four-year rule is calculated by tax year, not the calendar anniversary. If you used the scheme in 2023, you become eligible again from 1 January 2027.

1. Confirm that your employer participates in the Cycle to Work Scheme. Most large Irish employers do — check with HR or your line manager.
2. Browse the VĀSIK electric bike catalogue and choose a model under the €1,500 limit (or under €3,000 if you want a cargo e-bike). Add any safety equipment you need.
3. Request a pro forma invoice from VĀSIK quoting the model, all accessories and the total including VAT. We provide this to your employer free of charge — just email info@vasikgo.com.
4. Your employer pays VĀSIK directly for the full amount of the invoice.
5. VĀSIK ships your e-bike to your home address — free delivery anywhere in Ireland, typically within 2 to 5 working days.
6. Your employer deducts the equivalent gross amount from your salary over an agreed period (usually 12 months, but some employers allow shorter periods).

That’s it. No further paperwork is required with Revenue. The tax saving is applied automatically through the payroll system.

The Cycle to Work Scheme applies to any pedelec that complies with EN 15194, the European standard for electrically assisted pedal cycles. Every electric bike sold by VĀSIK meets this standard, with a 250 W motor and assistance limited to 25 km/h.

The models below all fall comfortably under the €1,500 e-bike cap, so the full retail price qualifies for tax relief:

• ENGWE L20 (€1,099) — Folding e-bike, 20″ wheels, ideal for combining cycling with DART or commuter rail.
• ENGWE M20 (€1,099) — Fat-tyre e-bike popular with riders who prioritise comfort and all-weather grip on Irish roads.
• ENGWE P20 (€999) — Lightweight folding model, perfect for apartment dwellers in Dublin or Cork city centres.
• DUOTTS C-29 (€749) — Robust hybrid e-bike, excellent value for everyday commuting and weekend rides.
• DUOTTS F-20 (€1,199) — Premium folding e-bike with strong build quality and long battery life.
• DYU D3F (€549) — Ultracompact folding e-bike, the lightest option in the catalogue.
• DYU A16 (€629) — Compact urban e-bike with great handling for short city commutes.

For cargo bike buyers exploring the €3,000 limit, contact our team. We can advise on the best electric cargo options for family use, last-mile delivery or trade work.

In years of helping Irish employees with Cycle to Work purchases, we’ve seen the same handful of avoidable mistakes derail otherwise straightforward applications. Knowing them upfront saves time, paperwork and (in the worst cases) the entire tax saving.

Mistake 1: paying for the bike yourself and then asking your employer to reimburse you. Revenue is unambiguous on this point: the employer must purchase the bike directly from the supplier. If the receipt is in your name, the transaction does not qualify, and the tax saving is lost entirely. Always wait for the employer purchase order before any payment leaves your account.

Mistake 2: forgetting to include accessories on the invoice. Helmets, locks, lights, panniers, mudguards, reflective gear and child seats are all eligible, but only if they appear on the same invoice as the bike. Items bought later — even one day later — are not covered. We recommend listing every accessory you might want in the next twelve months before requesting your pro forma invoice from VĀSIK.

Mistake 3: exceeding the spending limit. The €1,500 e-bike cap is firm. If your chosen build comes to €1,580, the tax saving applies only to the first €1,500, and most employers will simply refuse to process the application until you bring the total down. A safer approach is to choose a base model under the cap and add accessories up to the limit.

Mistake 4: assuming your employer participates without checking. The scheme is opt-in for employers. Most large Irish companies, the public service and the HSE do operate it, but smaller employers may not have set up the necessary payroll process. A two-minute conversation with HR before you start shopping prevents disappointment later.

Our team has guided hundreds of Irish employees through the scheme. Practical ways we make the process easier:

• Pro forma invoices issued within 24 hours of request, in the exact layout employer payroll systems expect.
• Compliance documentation (EN 15194 certificate, motor specification sheet, serial number) supplied automatically with every order.
• Direct billing to the employer — no need for you to advance funds at any stage.
• Email and phone support in English from 9:00 to 18:00 GMT, Monday to Friday.
• Bike assembly is minimal on arrival: handlebars, saddle, pedals — ten minutes with the included tools.

Do you work with Cyclescheme.ie or Bike to Work Ltd.?
No — VĀSIK doesn’t work through any scheme administrator or intermediary. Our part is simple: we send you an invoice for your e-bike. You and your employer then process the Cycle to Work application directly — we don’t complete the paperwork for you.

Several factors make VĀSIK the practical choice for an Irish Cycle to Work purchase:

• All bikes meet EN 15194 and arrive with full documentation, ready for employer reimbursement.
• Free delivery anywhere in Ireland (Dublin, Cork, Galway, Limerick, Waterford and all rural counties), typically 2 to 5 working days.
• One-year manufacturer warranty on the bike and battery.
• After-sales support via email and phone, with parts available for the most common service items.

Can I use the Cycle to Work Scheme for a second-hand bike?

No. Under Revenue rules, the scheme applies only to brand-new bicycles, e-bikes and cargo bikes. Second-hand purchases are not eligible.

What happens if I leave my employer before the 12 months are up?

Most employers require the outstanding balance to be deducted from your final pay before you leave. The bike itself remains yours. Check your employer’s specific terms before signing the salary sacrifice agreement.

Can I buy the bike and then claim back the tax?

No. The employer must purchase the bike directly from the supplier (VĀSIK). Purchases made in your own name and reimbursed later do not qualify for the tax relief. This is the most common reason for failed claims.

Does the scheme cover accessories bought separately?

Safety equipment must be included on the same invoice as the bike. Accessories bought later are not covered, even if they would have been eligible. Plan all your accessories upfront (helmet, lock, lights, panniers, mudguards) and add them to the original VĀSIK invoice.

Can I use the scheme again next year?

No. The scheme can only be used once every four tax years. If you used it in 2023, you can use it again from 2027 onwards. There is no exception for damaged or stolen bikes — insurance is the appropriate route in that case.

If your employer participates in the Cycle to Work Scheme and you haven’t used it in the last four years, you’re ready to claim up to 52% off your new e-bike. Browse the VĀSIK Ireland catalogue, choose the model that suits your commute, and request a pro forma invoice. We’ll provide the invoice and documentation you need — you and your employer handle the application.

Explore the full VĀSIK electric bike range for Ireland. All eligible models comply with EN 15194 and qualify for the Cycle to Work Scheme. Free delivery to your door across the Republic, typically in 2 to 5 working days.