With car tax rates changing in 2025, understanding how Ireland’s motor tax system works could save you hundreds of euros per year—especially if you're shopping for used cars Ireland or browsing cars for sale Ireland. This guide breaks down everything you need to know about Vehicle Registration Tax (VRT), annual motor tax, and how to choose the most tax-efficient car.
1. How Irish Car Tax Works in 2025
A. Vehicle Registration Tax (VRT)
Paid once when you first register a car in Ireland
Based on CO2 emissions (WLTP ratings from 2025)
New rates for 2025:
0g/km (EVs): €0 VRT
1-50g/km (PHEVs): 7-14% of market value
51g/km+ (Petrol/Diesel): 14-36%
Example: A used 2020 petrol Hyundai Tucson (120g/km) could face €2,000+ VRT if imported.
B. Annual Motor Tax
Paid yearly based on engine size or emissions
2025 Changes:
Petrol/Diesel: Slight increases for high-emission cars
Hybrids/EVs: Remain low (€120-€200/year)
| Fuel Type | Annual Tax (2025) |
|---|---|
| Electric (EV) | €120 |
| Plug-in Hybrid (PHEV) | €140-€170 |
| Petrol (1.0L-1.4L) | €200-€300 |
| Diesel (2.0L+) | €600-€1,200 |
2. How to Save on Car Tax
A. Choose Low-Tax Used Cars
✅ Best options:
Toyota Corolla Hybrid (€180/year)
Hyundai Ioniq Electric (€120/year)
Skoda Octavia 1.0 TSI (€200/year)
🚫 Avoid:
Large diesel SUVs (€1,000+ tax)
Pre-2008 petrol cars (high emissions)
B. Import Smartly
Northern Ireland imports may have lower VRT if emissions are favourable
Use Revenue’s VRT calculator before buying
C. Downsize Your Engine
A 1.0L turbo petrol (e.g., Ford Fiesta) costs €200/year vs. a 2.0L diesel at €800/year
3. Future-Proof Your Purchase
A. Go Electric or Hybrid
EVs: €120 tax + €0 VRT (if imported)
PHEVs: €170 tax + lower VRT than petrol
B. Check NCT & Tax History
A car with full NCT history avoids surprise tax hikes
Diesel cars failing emissions tests face higher penalties
C. Watch for 2025 Changes
Higher VRT for high-emission imports
More benefits for used EVs (lower tax, grants for home chargers)
4. Where to Find Tax-Friendly Used Cars
🔍 carsforsaleIreland.ie – Filter by tax band
🔍 Dealerships – Ask for "low-tax specials"
🔍 Private Sales – Verify tax costs before buying
Final Tips to Cut Costs
✔ Always check the logbook for correct emissions data
✔ Avoid "Category N/S" cars – Higher insurance offsets tax savings
✔ Pre-2017 diesels = risky (bans in cities likely)
The Bottom Line
Choosing the right used car Ireland based on tax rules could save you €500+ per year. Whether you opt for a hybrid, small petrol, or EV, smart shopping pays off.
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