BIK Calculator Ireland

When your employer provides you with perks beyond your normal pay - such as a company car, health insurance, or a low-interest loan - these are treated as Benefits-in-Kind (BIK) in Ireland. BIKs are considered part of your taxable income, meaning they increase the amount of tax you pay.

This often comes as a surprise to employees who think of BIKs as “free perks.” The truth is: while valuable, BIKs reduce your net take-home pay because they are subject to Income Tax, USC, and PRSI.

The Irish Tax Hub Salary Net Income Comparison Calculator can be used as a BIK calculator to quickly see how these benefits change your disposable income.

How the Calculator Works as a BIK Tool

Input Salary Without BIK

Input your salary under the ‘Previous Income’ section and simply exclude any BIK amounts.

Calculate the BIK Value

Employers report the “cash equivalent” of your benefit to Revenue. For example, if your company pays €1,500 for health insurance, this is added to your taxable income.

Add BIK to Your Salary

Input your details in the 'New Income' section and include BIKs as 'non-cash benefits'.

Run the Calculation

The calculator applies the correct 2025 tax bands, USC thresholds, and PRSI rates.

It shows you how much additional Income Tax, USC, and PRSI you’ll pay because of the BIK.

Compare With and Without BIK

The net income decrease is the true cost of the benefit to you.

Common Types of BIK in Ireland

Here’s a closer look at the most frequent BIKs and how they are taxed:

1. Company Cars

Cash Equivalent: A percentage of the Original Market Value (OMV) of the car, adjusted for annual business mileage and CO₂ emissions.
Example: A €30,000 car with low business mileage might create a BIK of €9,000–€10,500 per year.
Tax impact: This amount is treated like extra salary and taxed at your marginal rate, plus USC and PRSI.

2. Employer-Paid Health Insurance

If your employer pays for health insurance (e.g. €1,200 per year), the premium is a taxable BIK.
You’ll pay tax on it as if it were salary.

3. Accommodation

Rent-free or subsidised housing provided by an employer is a taxable BIK.
The taxable value is usually based on market rent less any contribution you make.

4. Preferential Loans

If your employer gives you a low-interest or interest-free loan (e.g. for a car or home purchase), the difference between the interest charged and the Revenue-specified rate is treated as a BIK.

For 2025, the specified rates are:

4% for home loans
13.5% for other loans

5. Professional Subscriptions / Gym Memberships

Employer-paid club memberships, subscriptions, or gym fees are generally taxable as BIK at their full cost.

6. Vouchers and Perks

Small benefits: Employers can give up to two vouchers totalling €1,000 per year tax-free (Revenue’s Small Benefit Exemption).
Anything above this limit is taxable as BIK.

Why Use the Calculator?

Transparency: You see the real impact of a benefit on your net income.
Negotiation Tool: If offered a package with benefits, you can weigh salary vs. BIK and negotiate smarter.
Tax Planning: Some BIKs can be structured more efficiently (e.g. electric company cars benefit from lower BIK rates).
Peace of Mind: You’ll know whether that “perk” really works in your favour financially.

How Irish Tax Hub Can Help

At Irish Tax Hub, we:

Run tailored calculations on all elements of your pay and benefits.
Check if you’re availing of every relief and credit (e.g. health insurance relief, small benefit exemption).

✅ Final Thought: A company benefit may sound generous, but unless you understand the tax impact, it could be reducing your take-home pay more than you expect. Using the Irish Tax Hub Net Income Comparison Calculator as a BIK Calculator Ireland gives you the clarity you need to make informed financial decisions.

Summary