Ireland’s Bike to Work Scheme for E-Bikes and Cargo Bikes

Yes, you can use Ireland’s Bike to Work Scheme to obtain a new electric bike or cargo bike through your employer.

The current tax-exempt limits are €1,500 for an e-bike, €3,000 for a cargo or electric cargo bike and €1,250 for another type of bicycle. Eligible safety equipment must fit within the same limit.

The most important practical rule is that your employer must buy the bike. You cannot buy it yourself and then ask to be reimbursed.

This guide reflects Revenue’s Cycle to Work guidance, published on 18 June 2026. Your employer or payroll department should confirm how its own scheme is administered.

What are the current Bike to Work limits?

Type of bicycle	Tax-exempt limit
Ordinary bicycle	€1,250
E-bike or pedelec	€1,500
Cargo or electric cargo bike	€3,000

These figures include any eligible equipment added to the order. If you choose a €1,400 e-bike and add a €100 lock, for example, the complete eligible order reaches the €1,500 e-bike limit.

The higher cargo-bike allowance can apply to a cargo or electric cargo bicycle with a frame specifically designed to carry passengers or heavy loads. Adding large panniers to an ordinary e-bike does not automatically turn it into a cargo bike for the purposes of the scheme.

How does the scheme work in practice?

The basic process is straightforward.

1. Check that your employer participates

Employers are not required to offer the scheme. Start by asking HR, payroll or whoever manages employee benefits.

If the company has not used the scheme before, The Crafty Commute can prepare the shop quotation and explain the practical steps. The employer remains responsible for operating the arrangement correctly.

2. Choose the complete setup

Choose the bike, correct frame size and any eligible equipment you want included. This is the point to consider your actual route rather than selecting a bike from specifications alone.

How far is the journey? Where will the bike be stored? Do you need to carry a laptop, shopping or work clothes? Are there hills, rough surfaces or exposed stretches where an electric motor would make regular cycling more realistic?

You can browse the current bike range before arranging a demonstration.

3. Obtain a written quotation

The shop provides a quotation for the bike and eligible equipment. Send this to your employer or its scheme administrator.

Do not pay the shop personally unless your employer has expressly confirmed that this forms part of its process. Revenue states that the tax exemption does not apply when an employee buys the bike and is subsequently reimbursed.

4. Your employer pays for the order

Your employer purchases the bike. It may provide the bike as a tax-free benefit or recover the cost through salary sacrifice.

A salary-sacrifice agreement can run for an agreed period of no more than 12 months. The agreed deductions are taken from gross salary before Income Tax, USC and PRSI are calculated, subject to the scheme conditions.

5. The bike is prepared for collection

Once payment and approval are complete, the bike can be assembled, checked and fitted for the rider.

How much can you save?

There is no single saving that applies to everyone.

Where salary sacrifice is used, the reduction in take-home cost depends on the Income Tax, USC and PRSI that would otherwise have applied to that part of your salary. Your income, tax band and payroll circumstances therefore matter.

Treat online savings calculators as illustrations. Ask your payroll department to confirm the expected deduction and effect on your take-home pay before committing to an order.

The scheme limit is also not necessarily the maximum price of the bike. Revenue states that if the cost exceeds the relevant limit, Income Tax, USC and PRSI apply to the excess. Your employer or scheme administrator must confirm how it handles that additional amount.

Which accessories can be included?

Revenue’s eligible list includes practical equipment that is easy to overlook when concentrating on the bike:

• An EN 1078-compliant cycle helmet

• Lights

• A bell

• Mirrors and mudguards

• A lock or chain

• Panniers, luggage carriers and straps

• A pump, puncture kit, tool kit or tyre sealant

• Reflective clothing and certain reflectors

These items must be new and purchased as part of the qualifying order.

Child seats, child helmets and trailers are specifically excluded. That matters when budgeting for a family cargo bike: the bike may qualify for the €3,000 cargo-bike limit, but some of the equipment required to carry a child will need to be purchased separately.

If you are still choosing between cargo-bike formats, the guide to longtails and front-loaders for the school run explains the practical differences.

Must the bike be used only for commuting?

No, but it must be mainly used for qualifying journeys.

Revenue defines these as the whole or part of a journey between your home and your normal place of work. This allows a bike to form one part of a longer commute—for example, cycling to a bus or train connection.

You will normally sign a statement confirming that the bike is for your use and will mainly be used for qualifying journeys. Leisure trips, shopping and school runs do not become forbidden, but the work-journey requirement must be genuine.

Which bike makes sense for commuting in Clare?

For a short journey with manageable hills, an ordinary commuter bike may be all that is required. A properly fitted bike with mudguards, lights and a carrier can be a simpler and less expensive choice.

An e-bike becomes useful when distance, hills, headwinds or the need to arrive without changing clothes would otherwise make cycling irregular. The right motor matters, but comfort, gearing, carrying capacity and ease of getting on and off deserve equal attention.

A cargo bike is worth considering when a commute overlaps with carrying children, shopping or equipment. Before choosing one, measure your storage entrance and think about where it will be parked at work.

A test ride should include starting, stopping, turning and riding on a slope resembling your normal route. A short ride can answer questions that a specification sheet cannot.

Frequently asked questions

How often can I use the Bike to Work Scheme?

Once every four years, counted by tax year. If you used it at any time in 2022, Revenue says you may use it again from 1 January 2026.

Can a company director use the scheme?

Yes. Revenue describes the scheme as available for employees and directors where the conditions are met.

Can a self-employed person use it?

A sole trader generally cannot use the scheme because there is no employer purchasing the bike. Citizens Information notes an exception where a self-employed person also pays PRSI as an employee.

Can I buy a second-hand bike through the scheme?

No. Revenue specifies new bicycles and new qualifying safety equipment.

What if my employer does not offer the scheme?

An employer is not obliged to participate. You can ask whether it would consider joining, but the purchase cannot proceed under the scheme without the employer’s involvement.

If you want to compare suitable bikes and obtain a quotation, book a free Bike to Work consultation or demonstration in Ennis. Bring your route, budget and employer requirements, and we can help you narrow the options down.