VRT relief on electric cars in Ireland has been extended for two more years. The relief, worth up to €5,000 and due to end on 31 December 2026, now runs to 31 December 2028 after Budget 2027.
There's one condition. The Department of Finance says the extension depends on new EU state-aid rules, the General Block Exemption Regulation (GBER), being adopted. If they are, the relief carries on in its current form.
How the VRT relief works
The relief applies to series-production passenger cars and light commercial vehicles powered only by an electric motor, so plug-in hybrids don't qualify. How much you get depends on the car's Open Market Selling Price (OMSP), the value Revenue uses to calculate VRT:
| OMSP | VRT relief |
|---|---|
| Up to €40,000 | up to €5,000 |
| €40,000 to €50,000 | reduced |
| Over €50,000 | none |
(Source: Revenue. Rules correct at 28 October 2026.)
Electric cars fall into the lowest VRT band, charged at 7% of the OMSP, and Revenue's own examples show what the relief is worth. On a car with an OMSP of €30,000, VRT would be €2,100; on a €40,000 car, it would be €2,800. In both cases the relief covers the full amount, so no VRT is payable.
That's the money the extension protects. Had the relief ended in December as planned, an electric car with a €40,000 OMSP registered from January would have cost €2,800 more in tax. Because the relief is already built into the Irish list prices of most mainstream electric cars, the extension mainly means prices don't jump in January. Above €50,000, there's no relief at all, so expensive EVs are unaffected.
The OMSP isn't always the price you pay. On imported cars especially, Revenue's valuation can be higher than the purchase price, so check the OMSP before you buy.
What else changed for car buyers
Petrol and diesel cars pay a little more. The same Budget raises VRT by one percentage point on bands 3 to 20, which covers most petrol and diesel cars and many hybrids. On a petrol car with an OMSP of €30,000, each extra percentage point adds €300 to the VRT bill. Combined with the extended EV relief, it widens the gap in upfront tax between an electric car and a combustion-engined one.
The SEAI purchase grant isn't affected by the Budget announcements. It currently gives up to €3,500 off a new electric car, but SEAI sets its terms, so check its website for the conditions that apply when you buy, including the price limit. With the VRT relief extended to the end of 2028, the grant is the main EV incentive still to be confirmed for 2027.