Benefits
Tax on a company van: 8% of the value, and when it's tax-free
Last updated 16 October 2026
A company van you can use privately is taxed at 8% of its value after a €10,000 reduction in 2026. Many vans used for work aren't taxed at all.
If your employer gives you a van and you can use it privately, the private use is a benefit in kind (a taxed perk). Unlike cars, vans are taxed at one flat rate whatever their emissions or mileage, and many working vans are exempt.
When there is no tax
No tax arises if all three of these apply:
- you need the van for work and are required to bring it home after work
- apart from travelling between home and work, you don't use it privately
- you spend at least 80% of your working time away from your employer's premises
Vans in a genuine pool, shared by several employees and not kept overnight at anyone's home, are also exempt. So are vans with a gross laden weight (weight when fully loaded) over 3,500kg.
How the charge is worked out
Otherwise, the yearly benefit is 8% of the van's Original Market Value (OMV). That is its Irish price with VAT and Vehicle Registration Tax when first registered, leaving out add-ons such as a fridge unit. The rate was 5% up to 2022. The OMV is first reduced by:
| Year | Reduction, all vans | Extra for fully electric vans |
|---|---|---|
| 2023 to 2025 | €10,000 | €35,000 |
| 2026 | €10,000 | €20,000 |
| 2027 | €5,000 | €10,000 |
| 2028 | €2,500 | None under current law |
Anything you pay your employer towards the van's running costs comes off the benefit. If you have the van for only part of the year, the charge is cut in proportion.
Worked figures
A diesel van with an OMV of €35,000, for an employee on €60,000:
| 2026: (€35,000 − €10,000) × 8% | €2,000.00 |
| Extra income tax, USC and PRSI in 2026 | €945.02 |
| 2027: (€35,000 − €5,000) × 8% | €2,400.00 |
| Extra income tax, USC and PRSI in 2027 | €1,137.43 |
As the reduction tapers, the taxable benefit on the same van rises by €400 in 2027, and the tax on it by about €192.41. A fully electric van with an OMV of €50,000 in 2026 has €30,000 taken off first, giving a benefit of €1,600. Hybrids don't get the electric reduction.
Work it out
Sources
- Revenue: Tax and Duty Manual Part 05-01-01b: Benefit in kind on the provision of vehicles (checked 25/10/2026)
- Revenue: Taxable employer benefits (medical insurance, shares and others) (checked 16/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.