Car Tax in Ireland

If you’re driving in Ireland, you’ve probably heard about motor tax (commonly called car tax). It’s not optional - every vehicle on Irish roads must be taxed, unless declared off-road with a SORN (Statutory Off Road Notification).

But how much does car tax in Ireland cost? How is it calculated? And are there ways to reduce your annual bill?

This guide breaks down everything you need to know about car tax in Ireland in 2025.

What Is Car Tax in Ireland?

Car tax (motor tax) is a yearly fee charged by the Irish government for using public roads. It funds essential services like:

• Road repair and maintenance
• National transport infrastructure
• Environmental policies related to vehicles

💡 Without valid car tax, your car is not road legal. You could face fines, penalty points, or even have your vehicle seized.

How Is Car Tax Calculated in Ireland?

Cars Registered Pre-2008: Engine Size Based System

• How it worked: Tax was based purely on engine size (cc). Small engines paid less, large engines paid much more.
• Example: A 1.0L car might pay €199 per year, while a 3.0L SUV could be over €1,800.

Who it applied to:

• All cars registered before 1 July 2008 stayed on this system permanently.
• Even after new rules came in, pre-2008 cars did not switch to CO₂-based tax.

👉 This is why many older cars are still taxed heavily today, even if their emissions aren’t as bad as their engine size suggests.

The rates are as follows;

2008–2021: CO₂ Emissions Based System

• How it worked: From 1 July 2008, newly registered cars were taxed based on CO₂ emissions (NEDC test cycle).
• Cleaner cars (under 120g/km) fell into the lowest bands (€120–€190).
• High emitters (226g/km+) paid over €2,300 annually.

Who it applied to:

• New cars registered from 1 July 2008 onward.
• Pre-2008 cars remained on the old engine size system.
• There was no option to switch systems.

👉 This encouraged buyers to choose cleaner, more efficient cars, leading to a boom in diesel sales (since they had lower CO₂ emissions under NEDC).

The rates are as follows;

Post-2021: WLTP Emissions System

• How it works: From 1 January 2021, Ireland switched to WLTP (Worldwide Harmonised Light Vehicle Test Procedure) for measuring emissions.
• WLTP generally gives higher and more realistic CO₂ figures than NEDC.
• More tax bands were introduced, making the system more graduated and tougher on polluters.

Who it applied to:

• New cars registered from 1 January 2021 onward.
• Cars registered between 2008 and 2020 stayed on the older NEDC CO₂-based system.
• Pre-2008 cars are still on the engine size system.

👉 This means in 2025, we now have three parallel tax systems running, depending on when your car was first registered.

The rates are as follows;

Commercial vehicles, vintage cars, and EVs fall into special categories with their own fixed rates.

Paying Car Tax in Ireland

You can renew and pay your motor tax in three main ways:

• Online at motortax.ie - the fastest and easiest option.
• In-person at your local Motor Tax Office.
• By post, though this method is now rare.

You can choose to pay for three months, six months, or twelve months. Paying for the full year usually works out slightly cheaper than splitting it into installments.

What Happens If You Don’t Pay Car Tax?

Driving without valid motor tax in Ireland is a serious offence. You could face an on-the-spot fine of €60, which increases if unpaid. Repeat offences may lead to court fines of up to €1,000, and in some cases, the Gardaí can seize your vehicle.

👉 Always keep proof of payment. Older cars still require a tax disc on the windscreen, while newer vehicles are recorded digitally and checked by Gardaí using ANPR (Automatic Number Plate Recognition).

Car Tax for Electric and Hybrid Cars in Ireland

Electric vehicles pay the lowest possible motor tax in Ireland, just €120 per year. Plug-in hybrids and full hybrids are also much cheaper to tax than petrol or diesel cars, as they fall into the lower CO2 bands.

This makes EVs and hybrids an attractive choice for drivers who want to save money not only on fuel but also on annual tax costs.

Declaring Your Car Off-Road (SORN)

If your car is not being used, you don’t have to pay tax — but you must submit a Statutory Off Road Notification (SORN).

• The declaration must be made before your existing tax expires.
• You can declare the vehicle off-road for a minimum of three months.
• You cannot backdate a SORN - if you fail to file it, you will still be liable for tax, even if the car never moved.

Ways to Save on Car Tax in Ireland

1. Drive a low-emission car - newer vehicles are often much cheaper to tax.
2. Switch to an EV or hybrid - the €120 EV tax rate is unbeatable.
3. Pay annually - saves a few euros compared to quarterly or half-yearly payments.
4. Downsize your engine - large engines are heavily penalised under the old system.
5. Use a SORN - if your car won’t be on the road, don’t pay unnecessary tax.

Frequently Asked Questions (FAQ)

How much is car tax in Ireland for a 1.4L car?

• Around €385 if registered before July 2008.
• Around €180 - €200 if registered after 2008, depending on emissions.

Do electric cars pay car tax in Ireland?
Yes, but only €120 per year - the lowest rate available.

Can I drive without car tax if I have insurance?
No. Both tax and insurance are legally required.

Can I transfer unused car tax when selling my car?
No. Motor tax is not transferable; the new owner must re-tax the vehicle in their own name.

How do I check if my car is taxed?
You can use the official portal at motortax.ie to check the current tax status.

Final Thoughts

Car tax in Ireland can range from just €120 for EVs to over €2,300 for high-emission vehicles. The system clearly encourages drivers to choose cleaner, more efficient cars.

If you’re considering a new car, always check its CO2 emissions or engine size before buying. That one detail could be the difference between paying under €200 a year or more than €1,500.

By understanding how the system works, you’ll be able to budget better, avoid fines, and even save money in the long run.