With more Irish workers swapping car keys for handlebars, the Cycle to Work Scheme remains one of the most cost-effective and health-positive ways to upgrade your commute. Whether you’re looking to save money, improve your fitness, or do your bit for the environment, now is the perfect time to make cycling part of your daily routine—with the added bonus of a generous tax break.
Yet despite the scheme’s popularity, many cyclists are still unclear about how it works, what’s eligible, and how to make the most of it. So here’s your complete guide to the Cycle to Work Scheme in Ireland—what it means, what’s covered, and how to get rolling!
What is the Cycle to Work Scheme?
The Cycle to Work Scheme is a government initiative that encourages employees to cycle to and from work by allowing them to purchase a new bicycle and safety equipment tax-free. Administered through your employer, the cost of the bike and gear is deducted from your gross salary over a maximum of 12 months, meaning you don’t pay income tax, PRSI, or USC on those repayments.
According to Citizens Information, this can result in impressive savings of up to 52%, depending on your income level and the total amount claimed.
Cycle to Work limits in 2025
As of 2025, the following limits apply:
- €1,250 for traditional bicycles
- €1,500 for electric bikes (e-bikes)
- €3,000 for cargo bikes or e-cargo bikes
These limits are inclusive of accessories, meaning if you’re eyeing a €1,200 bike, you only have €50 left in your allowance for extras like a lock or helmet (unless you’re willing to pay the difference from your own pocket).
You can avail of the scheme once every four years, based on the date you received your last bike through the scheme.
What equipment is eligible?
The scheme covers a broad range of commuting-related cycling gear, provided it is used primarily for getting to and from work:
Eligible items:
- Bicycles (standard, electric, or cargo)
- Helmets (must comply with EU safety standards)
- Bike locks and chains
- Lights, reflectors, bells, and mirrors
- Panniers, luggage carriers, and mudguards
- High-visibility clothing and rain gear
- Pumps, puncture kits, and repair tools
Not eligible:
- GPS devices or cycling computers
- Bike racks for cars
- Leisure or racing-specific clothing
- Accessories used solely for sport or leisure
How does it work?
Here’s a step-by-step overview of how to make a Cycle to Work purchase in 2025:
1. Check with your employer
Your employer must be enrolled in the scheme. If they’re not, they can register via one of the many providers that facilitate the process (like Bike to Work or Cyclescheme.ie). Most Irish employers, especially in the public sector, already participate.
2. Get a quote from a retailer
Select your bike and gear from a registered bike shop—either in-store or online. You’ll need to request an official quote or invoice.
3. Submit the paperwork
Send the quote to your HR or finance department. The employer either pays the supplier directly or works with a third-party facilitator to handle the transaction.
4. Salary deductions begin
You repay the cost of the bike through regular deductions from your gross salary, typically over 12 months. Because it’s pre-tax, this is where the big savings kick in.
5. Collect your bike
Once payment is confirmed, you can collect your new bike and start using it right away!
Top tips for making the most of the scheme
Choose wisely
You can only claim once every four years, so think long-term. If your commute is 15km each way, an e-bike may be worth the higher upfront cost (and still fully covered within the €1,500 limit).
Bundle accessories with the bike
You can’t go back later to claim for a helmet—so make sure to include everything you need in the initial invoice.
Test your bike before you commit
Fit and comfort matter. Try different frame styles (e.g., hybrid, road, step-through) to find the best match for your body and your commute.
Understand the total cost
The cap is on the total invoice. If your package exceeds the limit, you’ll need to pay the balance yourself—and that portion won’t be tax-free.
Don’t wait until last minute
Some employers may have cut-off dates or specific windows during the year when Cycle to Work applications are processed—often tied to payroll or budgeting cycles. If you’re planning to buy a new bike, check with your HR or finance department early to avoid delays or disappointment.
For full eligibility rules, the latest information, and FAQs, visit Citizens Information – Cycle to Work Scheme. Now’s the perfect time to put the wheels in motion!
