TaxSaver Scheme 2026 — buy your annual commuter pass tax-free through your employer
TaxSaver Commuter Scheme Ireland 2026
The TaxSaver Commuter Ticket Scheme lets you buy an annual or monthly public transport pass through your employer free of income tax, PRSI, and USC. A higher rate taxpayer commuting by public transport can save up to 52% off the cost of an annual pass — cutting a €2,000 annual pass down to approximately €960.
TaxSaver 2026 — At a glance
- Tax saving (40% rate)
- Up to 52% off pass cost
- Tax saving (20% rate)
- Up to 35% off pass cost
- What's covered
- Bus, Luas, DART, rail annual/monthly passes
- Frequency
- Each year — renewed annually
- How to access
- Through your employer — HR or payroll must participate
How much you save — worked examples
The saving is the amount of income tax + USC + PRSI you avoid paying on the value of the annual pass. At the higher 40% tax rate, combined with USC and PRSI, most employees pay approximately 52% in deductions on each additional euro of salary — meaning a pass bought through TaxSaver costs roughly half the face price.
Effective cost after tax saving — annual public transport pass
| Annual pass cost | Standard rate (20%) pays | Higher rate (40%) pays |
|---|---|---|
| €1,000/year | ≈ €650 | ≈ €480 |
| €1,500/year | ≈ €975 | ≈ €720 |
| €2,000/year | ≈ €1,300 | ≈ €960 |
| €2,500/year | ≈ €1,625 | ≈ €1,200 |
Approximate figures. Standard rate taxpayer combined rate ~35%; higher rate taxpayer ~52% (40% IT + 8% USC + 4% PRSI). Exact saving depends on individual tax circumstances.
Covered transport types
| Transport type | Annual pass options |
|---|---|
| Dublin Bus | Annual commuter pass |
| Bus Éireann | Annual commuter pass (national routes) |
| Luas | Annual zone-based pass |
| DART | Annual commuter pass |
| Iarnród Éireann (intercity) | Annual commuter pass — Cork, Galway, Limerick, Waterford routes |
| Integrated (Leap Annual) | Annual Leap Card with combined bus/rail/Luas |
| Cross-border services | Translink passes crossing into Northern Ireland |
How the scheme works
- Check if your employer participates
Contact your HR or payroll department. If they are registered with TaxSaver, they will have a process for ordering passes — often through an online portal or via taxsaver.ie.
- Select your annual pass
Choose the pass type and zones that cover your commute. Many employers renew annually in December/January for the following year.
- Employer deducts cost from gross salary
The pass cost is deducted from your gross salary over 12 months (or in a lump sum depending on employer policy). You pay no income tax, PRSI, or USC on this amount.
- Use your pass
Your pass (annual Leap Card, paper annual pass, etc.) is valid for 12 months on the covered routes. At renewal time, the process repeats for the following year.
Frequently asked questions
What if I leave my job mid-year?
If you leave employment before the annual pass expires, your employer may require you to repay the remaining value, or the pass may be cancelled. Check your employer's TaxSaver policy before committing.
Can I use TaxSaver if I work from home some days?
Yes. Remote working arrangements do not disqualify you from TaxSaver — you just use the pass on the days you commute. There is no minimum number of days required.
Does TaxSaver save my employer money too?
Yes. The employer also saves employer PRSI (11.05% in 2026) on the salary sacrifice amount. On a €2,000 annual pass, the employer saves approximately €220 in employer PRSI — which is why many employers are willing to administer the scheme.
Can I also use the Cycle to Work scheme in the same year?
Yes — TaxSaver and Cycle to Work are separate schemes. You can use both in the same year: for example, a monthly rail pass via TaxSaver plus a bike bought once every 4 years via Cycle to Work.
Is there a limit on the value of the pass?
There is no upper monetary limit on the pass value that can be covered by TaxSaver — the full cost of any standard commuter pass is exempt. However, the pass must be for genuine commuting purposes, not a general leisure travel card.
- TaxSaver is not available as an individual — your employer must register and participate in the scheme.
- The saving is not a tax refund — it is a reduction in the tax you pay on salary in the first place. The saving happens through payroll, not via a tax return.
- Single-journey tickets and day passes are not covered — only annual or monthly passes qualify.
- Working from home some days does not disqualify you — you only need to use the pass on days you actually commute.
- TaxSaver and Cycle to Work are separate and can both be used — you do not have to choose between them.
Related guides
This page was reviewed against official Revenue.ie guidance and updated to reflect 2026 TaxSaver Commuter Ticket Scheme conditions.