How much can I save on the Cycle to Work scheme in Ireland?

Higher-rate taxpayers earning over €44,000 save up to 47.35% (or 52% depending on USC tier) through combined Income Tax, USC, and PRSI relief. Standard-rate taxpayers save approximately 27.35% to 31%. For example, a €1,250 bicycle costs only ~€658 for a higher-rate earner.

What are the 2026 Cycle to Work limits?

The statutory limits are: €1,250 for regular pedal bicycles and safety equipment, €1,500 for electric bikes (pedelecs), and €3,000 for cargo or electric cargo bikes.

How often can you use the Bike to Work scheme in Ireland?

You can use the scheme once every four tax years. The year the bicycle is provided counts as year one. For instance, if you used the scheme in 2022, you are eligible again from 1 January 2026.

What happens if my bicycle costs more than the statutory limit?

If your bicycle and accessories exceed the statutory cap (e.g. €1,600 for a standard bike), the scheme shelters the first €1,250 tax-free. You pay the remaining €350 out of net post-tax pay, or your employer treats the balance as a taxable Benefit-in-Kind (BIK).

Do employers save money on the Cycle to Work scheme?

Yes. Employers save up to 11.05% in Employer Class A PRSI on the salary sacrificed by the employee, meaning employers also benefit financially from offering the scheme.

2026 Statutory Salary Sacrifice Engine

Cycle to Work Scheme Calculator

Calculate your real out-of-pocket bike cost and see your exact monthly take-home pay reduction. Models regular bikes (€1,250), e-bikes (€1,500), and cargo bikes (€3,000).

2026 rates verified 6 October 2026

Choose Your Bike & Salary Details

Select Bicycle Category (Revenue Statutory Limit)

Total Bike & Safety Gear PriceIncludes lock, helmet, etc.

€

Gross Annual SalaryDetermines tax band & PRSI

€

Salary Sacrifice Repayment Term

Revenue regulations permit salary sacrifice agreements up to a maximum of 12 months.

Tax Band Assessment

4-Year Statutory Rule Check

Revenue allows you to use the scheme once every four tax years.

Last availed of: Eligible in 2026!

Effective Discount: 47.4% OFF Retail

Your Real Bike Cost & Tax Savings

What this bike actually costs you after full Income Tax, USC, and PRSI relief

Real Cost to You

€658

You save €591.87 off the €1,250 store price!

Monthly Payroll Hit

€54.84

For 12 months (net take-home drop)

Weekly Cost Equivalent

€12.66

Just €12.66/week out of pocket

Income Tax Saved:€500.00(40% Higher Band)

USC Saved:€37.50(Up to 3% / 8% band)

PRSI Saved (4.35%):€54.37Oct 2026 PRSI rate

Employer PRSI Saved:€138.13Saved by your employer (11.05%)

Buying Directly From Post-Tax Cash

If you walk into a bike shop and pay with your debit card from your normal bank account:

Bike & Gear Price:€1,250

Tax Relief Available:€0.00 (0%)

Total Out-of-Pocket Cost:€1,250

Through the Cycle to Work Scheme

Employer buys bike upfront; you repay via pre-tax gross salary sacrifice over 12 months:

Gross Salary Sacrifice:€1,250

Tax, USC & PRSI Saved:−€591.87

Your Real Cost:€658

What Equipment & Safety Accessories Are Tax-Free?

Fully Permitted Gear

Cycle helmets conforming to European standard EN 1078
Bells, bulb horns, lights, dynamos, and reflectors
Locks and chains to keep your bicycle secure
Mudguards, chainguards, and luggage carriers
Panniers, straps, saddlebags, and child seats
Puncture repair kits, cycle pumps, and tyre sealants
Reflective clothing, high-vis vests, and armbands

Not Allowed Under Scheme

Electric scooters and electric mopeds (strictly excluded by Revenue)
Motorcycles and quad bikes
Second-hand or used bicycles
GPS cycle computers and smartwatches (unless basic speedometers)
Indoor turbo trainers and exercise bikes
Casual sports clothing not specifically designed for cycling safety

Related Irish Tax Calculators & Guides

Read Full Guide

Cycle to Work Scheme Ireland 2026 Guide

Rules, retailer vouchers, qualifying journeys, and employer salary sacrifice agreements.

Read Guide

PAYE Calculator

PAYE Income Tax Calculator

Calculate your exact take-home pay with and without voluntary pre-tax deductions.

Calculate Pay

Company Vehicle

BIK Car & EV Calculator

Calculate company car BIK tax vs cycling or public transport commuter schemes.

Calculate BIK

Regulatory & Statutory AccuracyTax Year 2026 Verified

🏛️

Revenue.ie Statutory Rates

Calculations strictly align with the Finance Act 2025/2026 and official rate schedules published by the Irish Revenue Commissioners.

Chartered Accountant Reviewed

Formulas designed and verified by a qualified Chartered Accountant (ACA) for Cycle to Work Scheme Calculator.

100% Client-Side Privacy

Calculated entirely in your device memory. Zero salaries, income data, or personal details are transmitted or stored on any server.

Disclaimer: This calculator provides estimates only and does not constitute professional tax advice. Figures are based on Revenue.ie guidelines for tax year 2026. Individual circumstances vary — always consult a qualified tax advisor for advice specific to your situation.

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