Cycle to Work Scheme 2026 — buy a bike tax-free through your employer, save up to 52%
Cycle to Work Scheme Ireland 2026
The Cycle to Work scheme lets you buy a bicycle through your employer and pay for it from your gross (pre-tax) salary. You pay no income tax, PRSI, or USC on the cost — meaning a higher rate taxpayer gets roughly half the price off a bike. The limit is €1,250 for a regular bike or €1,500 for an e-bike.
Cycle to Work Scheme 2026 — At a glance
- Limit — regular bike
- €1,250 (bike + safety equipment)
- Limit — e-bike / cargo bike
- €1,500
- Tax saving
- Approx. 30–52% off depending on tax rate
- Frequency
- Once every 4 years
- Who can use it
- Employees only — employer must participate
How much you actually save — worked examples
The saving on a Cycle to Work purchase depends on your tax rate and the amount of Income Tax + USC + PRSI you would normally pay on that portion of salary.
Effective cost after tax saving — standard vs. higher rate taxpayer
| Bike cost | Standard rate (20%) taxpayer pays | Higher rate (40%) taxpayer pays |
|---|---|---|
| €500 regular bike | ≈ €325 | ≈ €240 |
| €800 regular bike | ≈ €520 | ≈ €385 |
| €1,250 (limit — regular bike) | ≈ €813 | ≈ €600 |
| €1,500 (limit — e-bike) | ≈ €975 | ≈ €720 |
Tax savings are approximate. A higher-rate (40%) taxpayer also pays 8% USC and 4% PRSI = combined marginal rate of approximately 52%. Standard-rate (20%) taxpayer combined rate is approximately 35%.
What the scheme covers
- Bicycles — road bikes, mountain bikes, city/hybrid bikes, folding bikes, cargo bikes, e-bikes
- Safety equipment — helmet, lights (front and rear), reflective clothing/vest, bell, lock, pump, mudguards, rack, panniers, chain
- All items within the single limit (€1,250 or €1,500) in one purchase
How the salary sacrifice works
- Employer purchases the bike
You choose the bike and equipment. Your employer buys it through a participating bike shop or the employer's own preferred retailer. Many employers use a voucher/portal system (e.g., Halfords, Evans Cycles, Cycleways).
- You repay via salary sacrifice
The cost is deducted from your gross salary in monthly instalments over up to 12 months. Because this comes from gross pay (before income tax, PRSI, and USC), you only pay the after-tax cost.
- Bike becomes yours
The bike belongs to the employer during the salary sacrifice period. Once repayments are complete, the employer transfers ownership to you. In practice, you use the bike from day one.
Using the scheme once every 4 years
You can use the Cycle to Work scheme once every 4 years. The 4-year clock starts from when you last purchased a bike under the scheme. You do not have to wait 4 years from when the salary sacrifice ends — it starts from the purchase date.
Frequently asked questions
What if my employer does not offer the Cycle to Work scheme?
If your employer does not participate, you cannot avail of the scheme. You can ask HR or management to set it up — it is free to the employer (they reclaim the cost from your salary) and many employers participate. If they refuse, there is no individual opt-in mechanism.
Can I buy a bike above the €1,250/€1,500 limit?
Yes — but the tax exemption only applies to the first €1,250 (or €1,500 for e-bikes). You can top up the cost above the limit out of your own net (post-tax) income, or pay the difference separately. Only the exempted portion gives you the tax saving.
Can I get a bike for a family member?
No — the Cycle to Work scheme is for your own commuting use. Revenue requires that the bike is used mainly for commuting to and from work.
What if I leave my job during the salary sacrifice period?
If you leave employment before completing the salary sacrifice, the remaining balance typically becomes an immediate payroll deduction from your final pay, or must be repaid. Check your employer's specific terms.
Do I need to cycle to work every day?
No. Revenue requires that the bicycle is "mainly used for qualifying journeys" (commuting to work), but there is no specific minimum frequency. Many people also use their bike for personal use.
- The saving is not a fixed amount — it depends on your tax rate. A higher rate (40%) taxpayer saves significantly more than a standard rate (20%) taxpayer.
- Employers are not legally required to offer the scheme — you need to check whether yours participates.
- The bike technically belongs to your employer during the repayment period — though you use it from day one.
- You can only use the scheme once every 4 years — not every year.
- The limits (€1,250/€1,500) are per claim, not per year — going over the limit means the excess is taxable.
Related guides
This page was reviewed against official Revenue.ie guidance and updated to reflect 2026 Cycle to Work Scheme limits and conditions.