Budget 2027 VRT changes — proposed, pending Finance Bill: From 1 January 2027, Category A CO₂ bands 3–20 (over 80g/km) are proposed to rise by one percentage point; bands 1–2 stay unchanged. The existing EV VRT relief, worth up to €5,000, is proposed to continue to end 2028. See Department of Finance, §5.2.
Rates and sources checked 10 October 2026. Calculate your VRT using current 2026 rates. The calculator does not yet offer the proposed 2027 rates.
What changes in Budget 2027 for VRT?
The Department’s announcement of 6 October 2026 says bands 3–20 are being increased by 1 per cent
. We interpret this as one percentage point: 16% becomes 17%, rather than 16.16%. The table below is derived using that interpretation, which must be checked against the Finance Bill. It is not a table of enacted 2027 rates.
The Budget also proposes extending EV VRT relief to end 2028. Its VRT section announces no changes to NOx and does not announce 2027 minimum charges. Recheck this guide when the Finance Bill is published; the proposed details may change.
How VRT is calculated in 2026
For Category A passenger cars, the CO₂ charge is the greater of the band percentage multiplied by Revenue’s Open Market Selling Price (OMSP) or the band minimum. Add any NOx charge and deduct eligible relief. OMSP is Revenue’s Irish valuation, not the price paid abroad or a guaranteed Motorly estimate.
Use the vehicle’s documented WLTP CO₂ value. For older cars documented under NEDC, Revenue applies conversion formulae before choosing the band; do not enter an unconverted NEDC figure as WLTP. See Revenue’s Category A calculation rules.
VRT rates 2026 vs proposed 2027
2026 rates and minimums below are Revenue’s current schedule. 2027 percentages are proposed, pending Finance Bill, calculated as the current rate plus one percentage point for bands 3–20. 2027 minimums: not announced. The 2026 minimum column applies to 2026 only. Emission ranges with “>” exclude the lower endpoint and include the upper endpoint.
| Band | CO₂ (g/km) | 2026 rate | 2026 minimum | 2027 rate — proposed, pending Finance Bill |
|---|---|---|---|---|
| 1 | 0–50 | 7% | €140 | 7% |
| 2 | >50–80 | 9% | €180 | 9% |
| 3 | >80–85 | 9.75% | €195 | 10.75% |
| 4 | >85–90 | 10.5% | €210 | 11.5% |
| 5 | >90–95 | 11.25% | €225 | 12.25% |
| 6 | >95–100 | 12% | €240 | 13% |
| 7 | >100–105 | 12.75% | €255 | 13.75% |
| 8 | >105–110 | 13.5% | €270 | 14.5% |
| 9 | >110–115 | 15.25% | €305 | 16.25% |
| 10 | >115–120 | 16% | €320 | 17% |
| 11 | >120–125 | 16.75% | €335 | 17.75% |
| 12 | >125–130 | 17.5% | €350 | 18.5% |
| 13 | >130–135 | 19.25% | €385 | 20.25% |
| 14 | >135–140 | 20% | €400 | 21% |
| 15 | >140–145 | 21.5% | €430 | 22.5% |
| 16 | >145–150 | 25% | €500 | 26% |
| 17 | >150–155 | 27.5% | €550 | 28.5% |
| 18 | >155–170 | 30% | €600 | 31% |
| 19 | >170–190 | 35% | €700 | 36% |
| 20 | >190 | 41% | €820 | 42% |
Sources: Revenue: Applying the tax and Department of Finance: Budget 2027 Tax Policy Changes, §5.2.
What a one percentage point rise means in euro
Where the percentage determines the CO₂ charge, the proposed increase is OMSP × 0.01, holding valuation and other charges constant. An OMSP of €20,000 gives €200 more; €30,000 gives €300 more; €40,000 gives €400 more. These are arithmetic illustrations of the proposal, not 2027 calculator outputs or final Revenue assessments. Unannounced minimums may matter for low-value cars.
Which cars are affected: petrol, diesel, hybrid, PHEV or EV?
The proposed change follows the CO₂ band, not the fuel label. Petrol, diesel, conventional hybrid and plug-in hybrid cars over 80g/km fall within the affected bands. A PHEV at 80g/km or below falls within an unchanged band. Check the exact variant’s documented emissions; a hybrid badge alone does not establish a rate. A battery-only EV has zero tailpipe CO₂, placing it in band 1.
Electric cars: VRT relief and the separate SEAI grant
Revenue’s current EV relief rules cover qualifying series-production vehicles powered only by an electric motor and registered before 31 December 2026. Relief is up to €5,000 at OMSP up to €40,000, reduces above €40,000 and is unavailable at €50,000 or more. It cannot exceed the VRT otherwise due. Revenue’s criteria are not restricted to new cars; a qualifying used EV import can receive VRT relief.
Budget 2027 proposes extending this relief to 31 December 2028, pending Finance Bill. This is a proposed extension of the existing relief, not a guaranteed €5,000 payment for every EV. Battery-only EVs have no NOx charge.
The SEAI purchase grant is separate: maximum €3,500 for qualifying new M1 passenger battery electric vehicles bought privately via a dealer, subject to SEAI’s vehicle and price conditions. The dealer applies and deducts it from the agreed new-car price. SEAI grants are not available for used EVs; do not deduct a purchase grant from a used UK import budget. SEAI also states that only vehicles purchased in Ireland from an approved dealer are grant-eligible.
The NOx charge
Revenue’s NOx schedule applies to Category A cars including hybrids, but excludes battery-only electrics:
- First 40 mg/km: €5 per mg/km.
- Next 40 mg/km, up to 80: €15 per mg/km.
- Above 80 mg/km: €25 per mg/km.
A diesel at 110 mg/km gives (40 × €5) + (40 × €15) + (30 × €25) = €1,550. If satisfactory NOx evidence cannot be provided, Revenue’s maximum charges are €4,850 for diesel and €600 for other non-electric cars. Obtain the Certificate of Conformity or acceptable registration evidence rather than relying on an estimated NOx value.
Worked examples from the live Motorly calculator
These current-rate estimates were returned by Motorly’s live VRT calculator on 10 October 2026. All three used £450 shipping, the Great Britain setting (Northern Ireland exemption off), and GBP/EUR 1.1798. No original Irish list price was supplied, so OMSP was estimated from the UK purchase price. Exchange rates, valuation and eligibility can change; Revenue determines the actual liability.
2020 Volkswagen Golf 2.0 TDI: illustrative import inputs
Inputs: £14,000 purchase price, year 2020, diesel, 117g/km WLTP CO₂ and 110mg/km NOx. These illustrate a calculation; they do not certify emissions for every Golf 2.0 TDI.
- Estimated OMSP: €21,472; current CO₂ rate: 16%.
- CO₂ VRT: €3,436; NOx: €1,550.
- Customs duty: €1,705; import VAT: €4,313.
- Total taxes: €11,004; total landed cost including purchase and shipping: €28,052.
At the same OMSP, applying the derived proposed 17% rate gives about €3,650 CO₂ VRT, roughly €215 more before rounding. That comparison is separate arithmetic, pending Finance Bill; the live calculator returned the 2026 figure above.
2021 petrol car at 115g/km
Inputs: £14,000, year 2021, petrol, 115g/km CO₂ and 20mg/km NOx. The live calculator returned OMSP €21,472, rate 15.25%, CO₂ VRT €3,274, NOx €100, duty €1,705, VAT €4,313 and landed cost €26,440. The derived proposed 16.25% rate would give about €3,489 CO₂ VRT at the same OMSP, pending Finance Bill.
2023 used battery electric car
Inputs: £20,000, year 2023, electric and 0g/km CO₂. The live calculator returned OMSP €30,675, 7% gross CO₂ VRT relieved by €2,147, net VRT €0 and NOx €0. Duty €2,413 and VAT €6,104 still brought the landed cost to €32,644. No SEAI purchase grant was deducted. The proposed band-1 percentage remains 7%; relief in 2027 depends on the proposed extension becoming law and the vehicle qualifying.
These GB examples use the calculator’s 10% duty and 23% import VAT assumptions. Actual duty depends on origin and available reliefs; an NI purchase does not automatically qualify for exemption. Check Revenue’s GB and NI import conditions and our UK-to-Ireland importing guide.
Does importing before January 2027 lock in today’s rate?
Do not assume a purchase, shipment or December arrival guarantees 2026 rates. Revenue says vehicles must be registered within 30 days of entry and the NCTS inspection appointment must be booked within seven days. See Revenue’s registration requirements. The Budget announcement does not settle the treatment of a December arrival registered in January; check the implementing legislation and Revenue guidance.
Compare the current calculator estimate with the proposed CO₂ difference, then compare the Irish asking price. Include transport, duty, VAT, NOx, registration and insurance costs. For further research, browse used electric cars, use the free vehicle check for available listing context and compare repayments with our finance calculator. Obtain a separate history check where you need finance, write-off or certified mileage evidence.