Benefit in Kind (BIK) Calculator for Company Cars
Now updated for Budget 2026 BIK rules, including new EV A1 category and tapered OMV relief.
Our free Benefit-in-Kind (BIK) Calculator helps employers and employees in Ireland work out the taxable benefit for personal use of a company car – quickly and accurately. It’s fully aligned with Revenue guidelines, so you can trust the numbers.
What’s new? We’ve updated the tool with the latest Budget 2026 changes, including the new EV A1 category and tapered OMV relief – making it easier to plan ahead.
Looking for older tax years? You’ll find everything in Revenue’s Tax and Duty Manual.
Who Should Use This Calculator?
This calculator is designed for employers, HR professionals and payroll administrators in Ireland. It helps users accurately calculate Benefit in Kind (BIK) for employees who use company vehicles for personal purposes. Whether you process payroll in-house or use payroll software, understanding BIK is essential for payroll compliance. Using this tool helps your organisation remain aligned with Revenue regulations, avoid unnecessary complications and support accurate payroll processing.
How Does It Work?
To use the calculator, enter the Original Market Value (OMV) of the vehicle, the annual business mileage and the CO₂ emissions category. The tool applies Revenue's 2026 BIK guidelines to calculate the taxable benefit amount. For electric vehicles, it automatically includes the updated OMV reduction for the 2026 tax year. Businesses using payroll software can use these calculations to help ensure accurate employee tax deductions and reporting.
Why is Accurate BIK Calculation Important?
Accurate BIK calculation is crucial for payroll compliance, preventing errors and protecting your organisation from penalties. It ensures that non-cash benefits from company car use are correctly reported for tax purposes. Correctly calculating BIK helps businesses avoid costly mistakes, streamline payroll administration and maintain compliance with Revenue requirements. It also demonstrates a commitment to responsible payroll management and employee trust.
Calculate Your Benefit in Kind in Seconds
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Managing BIK, payroll legislation, employee payments and Revenue reporting can be complex and time-consuming. SD Worx helps organisations streamline payroll processes, reduce compliance risk and free up valuable time for HR and finance teams.
Speak with one of our payroll specialists to discuss your current challenges and discover how SD Worx can support your organisation.