Under the Cycle to Work Scheme (also known as the Bike to Work Scheme), you can get a new bike tax free through your work. Your employer pays for a new bike and then you repay the cost of regular instalments from your gross (overall) salary.
You do not have to pay tax, PRSI or the Universal Social Charge on the overall cost of your new bike and accessories.
How do I save money on the Cycle to Work Scheme?
As an employee, you save on the costs of cycling to work because your repayments come out of your salary before tax, USC and PRSI are deducted. This means that someone on the highest rate of tax will save almost half of the cost of a new bike and equipment.
How much can I spend on the Cycle to Work Scheme, and how often can I use it?
There are 3 limits depending on the type of bike you bought.
The limit (including related safety equipment) is:
- €3,000 for cargo and ecargo bikes.
- €1,500 for regular e-bikes.
- €3,000 for other bikes.