Cycle to Work Scheme 2026: Spend Less, Commute Smarter
If you want a cheaper, quicker, and healthier way to get around Dublin, the Cycle to Work Scheme is your best starting point. This guide breaks down the rules, savings, and steps you need to follow so you can bring home a brand-new bike or e-bike with big tax-free benefits.
The Cycle to Work Scheme explained
What is the Cycle to Work Scheme?
The Cycle to Work Scheme is a government-backed initiative that helps you save money and follow a healthy lifestyle. You use it to buy a new bike, electric bike, or cargo bike through your employer. The goal is simple: encourage people to cycle to and from work, or even between workplaces, instead of relying on cars or public transport.
Under this scheme, your employer buys the bike on your behalf. You then repay the cost through your salary over a set period. Because the repayment comes out of your gross pay, you pay less tax, which means real savings for you.
This Cycle to Work Scheme has grown in popularity across Dublin because it removes two barriers many commuters face: the high cost of buying a new bike upfront and the lack of financial incentives to switch from driving. With this programme, you can buy a bike without draining your bank account.
Why Dublin commuters choose cycling
If you live or work in Dublin, you already know how busy the roads can get. Cycling gives you a way out of the daily traffic grind. You can glide past long lines of cars, skip crowded buses, and enjoy a calmer start to your day.
Cycling is also one of the most cost-effective ways to stay fit. Instead of paying for gym memberships or long commutes, you turn your daily travel into exercise. Over time, you improve your heart health, strengthen your legs, and boost your mood.
You also help the city breathe easier. Every time you leave your car at home, you reduce carbon emissions and lighten the strain on Dublin’s transport system. It’s a simple switch with a big impact.
Unlocking tax-free savings: Up to 52% relief
How the salary sacrifice works
The magic behind the Cycle to Work Scheme is the salary sacrifice setup. Your employer buys the bike for you, and then you repay the amount over up to 12 months. These payments are taken directly from your gross salary.
Because the repayments come out before income tax, PRSI, pension levies, and the Universal Social Charge, you end up saving money on the total cost. It’s like the government is giving you a discount simply for choosing a healthier, cleaner commute.
Everything happens through payroll, and most employers handle the process smoothly. You’re not taking on a loan. You’re just redirecting a portion of your salary in a way that works better for your wallet.
Calculating your tax savings
Your savings depend on your tax band and the cost of your bike. The higher your tax rate, the more you save.
For example, if you buy a bike worth €1,200:
- At the 20% tax rate, you save about €288
- At the 40% tax rate, you save about €624
That means your €1,200 bike could cost as little as €576 if you’re on the higher tax bracket. When you add in accessories like helmets and locks, the savings become even more meaningful.
Many commuters don’t realise this until they see the numbers. The Cycle to Work Scheme isn’t just a discount. It’s a serious financial boost.
2026 Spending caps: Understanding the monetary limits on
Allowances for different bike types
For 2026, the government hasn’t yet set different limits on how much you can spend through the Cycle to Work Scheme. So, it’s safe to assume that 2026 will follow the same structure — unless the government confirms a change later:
- €1,250 for a traditional bicycle
- €1,500 for an electric bike (e-bike)
- €3,000 for cargo or e-cargo bikes
These limits apply to the full package — your bike plus the gear you need to commute safely.
The “inclusive of accessories” rule
One important rule is that the spending caps include all accessories you buy. That means helmets, locks, lights, panniers, and reflective gear all count toward your limit.
If your invoice goes above the limit, you must cover the difference yourself. That extra portion isn’t tax-free, so try to keep everything within the cap if possible.
The four-year rule
You can only use the Cycle to Work Scheme once every four years. This clock starts from the date you received your last bike.
Because of this, you should think long-term when choosing a new ride. Pick something durable, comfortable, and suitable for your commute.
Equipment checklist: What’s eligible and what isn’t?
Eligible gear for your Dublin commute
The Cycle to Work Scheme covers gear that helps you commute safely and efficiently. That includes:
- Bikes and e-bikes
- Helmets (must meet EU standards)
- Lights and reflectors
- High-visibility vests and jackets
- Waterproof clothing
- Locks and security chains
- Panniers, luggage carriers, and baskets
- Rain gear and overshoes
- Basic repair tools
- Pumps, gloves, glasses, bells, and phone holders
- Speedometers and similar practical accessories
If you use it for your commute, it’s likely eligible.
Items not covered by the Cycle to Work Scheme
Some items fall outside the rules because they’re not considered part of essential commuting gear. These include:
- GPS units
- High-end cycling computers
- Car-mounted bike racks
- Sport-only clothing
- Performance racing gear
If you can’t use it for your work commute, it probably won’t qualify.
The popularity of e-bikes and modern mobility
Many Dublin commuters now choose e-bikes. Retailers highlight folding e-bikes, step-through frames, and electric mountain bikes because they make city travel easier and more comfortable. These bikes handle long distances, hills, and heavy loads without breaking a sweat.
E-bikes also help commuters avoid showing up to work exhausted or soaked after battling against the wind. With the €1,500 allowance, many commuters find e-bikes to be the perfect balance of convenience and affordability.
Step-by-step guide: Securing your tax-free bike
Phase 1: Checking eligibility and getting a quote
Start by checking whether your employer is enrolled in the Cycle to Work Scheme. Most companies are, but it’s always good to confirm with your HR or payroll team.
Next, visit a registered retailer to get an official quote. Many online stores have a “Cycle to Work Invoice” option at checkout. When creating your invoice:
- Select the Cycle to Work option
- Change the billing address to your employer’s address
- Make sure your accessories and bike are listed clearly
Once you have the quote, send it to your employer for approval.
Phase 2: Employer payment and collection
After HR approves your request, your employer pays the retailer directly. This step is important — you cannot pay and ask for reimbursement. If you do, the tax benefit is lost.
Once the retailer receives payment, they’ll let you know when your bike is ready for collection or delivery. You can then start enjoying your upgraded commute.
Strategic planning and avoiding delays
Choosing wisely for the long-term commute
Since the claim is only available once every four years, consider long-term needs; for instance, an e-bike might be valuable for a 15km commute. It is also advised to test different frame styles (hybrid, step-through, etc.) to ensure proper fit and comfort.
Mandatory bundling of accessories
Add all your key accessories to your first invoice. You can’t claim more items later. Helmets, locks, lights, panniers, and rain gear should all be included from the start.
Working with HR: Checking cut-off dates
Your employer may have payroll deadlines or budget windows. Check early so you don’t miss the cycle (pun intended). A quick message to HR can save you weeks of delay.
Life beyond the purchase: The Dublin cycling context
Cycle safety and sharing the road responsibly
Cycling in Dublin means sharing the road with cars, buses, and pedestrians. You should always stay visible, signal clearly, and wear your helmet. Use lights even during the day. Safety is the heart of the cycling community — the goal is to keep everyone on the road secure.
Local retailers and fast delivery
Dublin has strong support from local bike shops and online retailers offering fast delivery, expert repairs, and plenty of e-bike choices. Whether you prefer visiting a shop in person or ordering online, you have a wide range of trusted options.
Once you have your new bike, Ireland gives you endless places to explore — coastal paths, forest trails, city greenways, and national cycle routes. You can also join charity rides, local cycling clubs, and major Irish cycling events held throughout the year.
Cycling isn’t just a way to commute. It becomes part of your lifestyle — improving your health, reducing your stress, and helping you connect with your city in a whole new way.
