How VRT is Calculated

Our calculator follows the official methodology outlined by the Irish Revenue Commissioners. Here is a complete step-by-step breakdown of how every component of your VRT is determined.

1. Open Market Selling Price (OMSP)

The foundation of any VRT calculation is the OMSP. This is not what you paid for the vehicle, but rather the price Revenue determines it would sell for in the Irish open market. This distinction is one of the most commonly misunderstood aspects of VRT, and it catches many first-time importers off guard.

Revenue determines the OMSP using a range of data sources including dealer listings, auction results, trade valuation guides, and actual transaction data from vehicles already registered in Ireland. They do not accept a purchase price from a foreign invoice as evidence of Irish market value. A car bought cheaply at auction in Japan or Germany will still be assessed at what a similar car sells for in Ireland, not what you paid for it.

Our calculator uses the OMSP you provide as the starting point. If you are unsure what OMSP to use, we recommend checking our OMSP Guide for guidance on how Revenue values different vehicles. You can also use our calculator by model to get model-specific OMSP estimates based on current Irish market data.

The OMSP is not adjusted for individual vehicle condition automatically. If your vehicle has damage, high mileage, or other condition issues that reduce its market value, you need to provide documentation to Revenue to justify a lower OMSP. Our Condition Assessment and Mileage Depreciation guides explain how to build a case for a reduced valuation.

2. CO2 Emissions Charge (For Category A Vehicles)

This is the main component of VRT for most vehicles. The rate is a percentage of the OMSP, determined by the vehicle's CO2 emissions. The percentage increases as emissions rise, creating a strong incentive to choose lower-emitting vehicles.

The VRT rate structure for 2026 is divided into bands based on WLTP emissions for cars first registered from 2021. Vehicles registered before 2021 use the older NEDC bands. The table below shows the current rate structure:

WLTP (Worldwide Harmonised Light Vehicle Test Procedure): This is the current testing standard used for all new type approvals from 2021. WLTP replaced the older NEDC test because it provides a more realistic measurement of fuel consumption and CO2 emissions. WLTP figures are typically 15-25% higher than equivalent NEDC values because the test is longer, faster, and includes more dynamic driving conditions.

NEDC (New European Driving Cycle): This older standard was used for vehicles registered before 2021. While it has been superseded, many vehicles still have NEDC figures on their registration documents. Revenue applies a conversion formula to translate between the two standards when necessary. If your vehicle was tested under NEDC but falls into a WLTP banding year, Revenue will convert the NEDC figure to an estimated WLTP equivalent before applying the rate.

To determine which standard applies to your vehicle, check the date of first registration. Cars first registered on or after 1 January 2021 generally use WLTP bands. Cars registered before this date use NEDC bands. Our WLTP VRT Calculator handles both standards automatically.

The practical impact of this difference is notable. A diesel car that produces 120 g/km under NEDC might produce 140-145 g/km under WLTP. Under NEDC bands, that 120 g/km attracts a 17.9% rate. Under WLTP bands, 145 g/km attracts a 24.8% rate. On a €30,000 car, that is a difference of over €2,000 in VRT. Always check which standard applies to your vehicle before budgeting.

3. Age Depreciation

Before the VRT rate is applied, Revenue reduces the OMSP based on the vehicle's age. This reflects the reality that a used car is worth less than a new one. Age depreciation is applied automatically and you do not need to request it or prove anything to receive it.

Revenue uses a fixed schedule that applies uniformly to all vehicle types. The depreciation is calculated from the date of first registration anywhere in the world, not from when you bought the vehicle or imported it. Revenue calculates age on a month-by-month basis, not rounded to the nearest year.

The depreciation caps at 50% after five years. This means a six-year-old car and a ten-year-old car receive exactly the same age depreciation. If you are importing a vehicle in the 5-20 year range, the age depreciation component is straightforward — it will always be the maximum 50% reduction.

For vehicles over 20 years old, different rules apply. Classic and historic vehicles may qualify for a flat-rate VRT of €200 under Revenue's classic car guidelines, provided they meet the criteria for age, originality, and historical interest.

Our Age Depreciation Calculator lets you see exactly how different age brackets affect your VRT liability. The savings from age depreciation are substantial — a three-year-old car with a €40,000 OMSP saves 30%, or €12,000 in taxable value, compared to a new car with the same OMSP.

4. The NOx Levy

In addition to the CO2-based VRT rate, a separate levy based on Nitrogen Oxide (NOx) emissions is charged. This primarily affects diesel vehicles, which produce notably higher NOx emissions than petrol vehicles, though some modern direct-injection petrol engines can also attract a modest NOx charge.

The NOx levy is calculated using a tiered structure based on the vehicle's NOx emissions in milligrams per kilometre (mg/km). The rates for 2026 are as follows:

The levy is capped at a maximum of €4,850 for diesel vehicles and €600 for petrol and other fuel types. Most modern diesel vehicles with selective catalytic reduction (SCR) technology and AdBlue systems produce NOx emissions in the range of 40-80 mg/km, which would attract a levy of approximately €300 to €600. Older diesels without advanced emission controls can easily exceed 150 mg/km and hit the €4,850 cap.

To calculate the NOx levy on a specific vehicle, you need the NOx emissions figure from the vehicle's Certificate of Conformity (COC) or registration documents. Not all vehicles have a NOx figure listed — for those that do not, Revenue may use a default value or assess the vehicle at an NCT centre. Our NOx Levy Calculator handles this calculation automatically.

The NOx levy is added after the CO2-based VRT charge and before any reliefs are applied. It is not reduced by age depreciation — the full levy is payable regardless of the vehicle's age. This can make a real difference on older diesel imports, where the OMSP may be heavily depreciated but the NOx levy remains at the same level as for a new vehicle.

5. Mileage Depreciation

While age depreciation is automatic, mileage depreciation is not. Revenue does not apply a fixed mileage depreciation schedule — instead, they consider mileage as one factor among many when determining the OMSP. High mileage can reduce the OMSP further, but you need to provide evidence to justify the reduction.

Our calculator includes a mileage depreciation estimator that applies reasonable adjustments based on typical Irish market behaviour. A vehicle with notably more miles than expected for its age will show a reduced OMSP, which in turn reduces the VRT liability. The adjustment ranges from a 5% premium for exceptionally low mileage to a 30% reduction for excessively high mileage.

To claim mileage depreciation at your VRT appointment, you should bring service records showing mileage progression, MOT or NCT certificates, and photographs of the odometer. Revenue officers are trained to spot mileage discrepancies and will verify your claim against available records. Our Mileage Depreciation Guide explains the documentation requirements in detail.

It is worth noting that mileage depreciation and age depreciation interact. A three-year-old car with 120,000 miles will first get a 30% age depreciation on its OMSP, and then a further mileage adjustment on the already-depreciated value. The two adjustments compound, not stack linearly.

6. Reliefs and Exemptions

Certain vehicles qualify for reliefs that reduce the final VRT amount. These reliefs are applied after the CO2 charge and NOx levy have been calculated.

Electric Vehicle Relief

A relief of up to €5,000 is available for Battery Electric Vehicles (BEVs) with an OMSP up to €40,000. This relief tapers to zero for vehicles with an OMSP between €40,001 and €50,000. Vehicles with an OMSP over €50,000 do not qualify for any EV relief. The relief applies to the VRT liability, reducing it by the relief amount or the calculated VRT, whichever is lower.

It is important to note that only pure Battery Electric Vehicles qualify for this relief. Plug-in hybrid vehicles (PHEVs) do not qualify for the €5,000 relief, though they may benefit from lower CO2-based VRT rates due to their reduced emissions. Our EV Relief Guide has complete details on the qualifying criteria.

The EV relief scheme has been confirmed through 2026, with the exact future of the scheme beyond that date subject to government budget decisions. For current imports, the relief provides a substantial saving that can make EV imports notably more cost-effective than equivalent petrol or diesel vehicles.

Historic and Classic Vehicle Relief

Vehicles over 30 years old may qualify for a flat VRT rate of €200, provided they meet Revenue's criteria for historic vehicles. The vehicle must be of historical interest, maintained in its original state, and not used as a daily driver. Vehicles between 20 and 30 years old do not qualify for the flat rate but still receive the maximum 50% age depreciation.

Our Classic Car VRT Guide explains the eligibility requirements in detail, including what documentation you need to support a classic vehicle application. The flat rate of €200 applies regardless of the vehicle's value, making it extremely attractive for high-value classic imports.

Other Reliefs and Exemptions

Additional reliefs may apply in specific circumstances including transfers of residence (moving your personal vehicle to Ireland when relocating), disabled drivers and passengers, charitable organisations, and diplomatic missions. Each of these reliefs has its own qualifying criteria and application process. Revenue's website provides detailed guidance on the application process for each relief type.

7. The Complete Calculation Formula

The final VRT payable is calculated using the following formula:

VRT = (Depreciated OMSP x CO2 Rate) + NOx Levy - Reliefs

Where the Depreciated OMSP is the original OMSP reduced by the applicable age depreciation percentage. The CO2 Rate is the percentage from the WLTP or NEDC emissions band table. The NOx Levy is calculated from the vehicle's NOx emissions in mg/km. Reliefs include EV relief, historic vehicle flat rate, or other applicable reductions.

Worked Example: 2021 Volkswagen Golf

Let us walk through a complete calculation for a typical import scenario:

• Vehicle: 2021 Volkswagen Golf 1.5 TSI
• OMSP: €28,000
• Age: 3 years (registered June 2021, imported June 2024)
• Age Depreciation: 30% (3-4 year bracket)
• Depreciated OMSP: €28,000 x 0.70 = €19,600
• CO2 Emissions (WLTP): 125 g/km
• VRT Rate: 20.2% (121-130 g/km WLTP band)
• CO2 Charge: €19,600 x 0.202 = €3,959
• NOx Emissions: 45 mg/km (petrol)
• NOx Levy: 45 x €5 = €225 (under €600 cap)
• Total VRT: €3,959 + €225 = €4,184

Without age depreciation, the VRT would have been: (€28,000 x 0.202) + €225 = €5,881. The age depreciation saved €1,697.

Worked Example: 2019 BMW 520d

• OMSP: €35,000
• Age: 5 years
• Age Depreciation: 50%
• Depreciated OMSP: €35,000 x 0.50 = €17,500
• CO2 Emissions (NEDC): 135 g/km
• VRT Rate: 24.8% (141-155 g/km WLTP equivalent)
• CO2 Charge: €17,500 x 0.248 = €4,340
• NOx Emissions: 85 mg/km (diesel)
• NOx Levy: (60 x €5) + (20 x €15) + (5 x €25) = €300 + €300 + €125 = €725
• Total VRT: €4,340 + €725 = €5,065

The NOx levy of €725 on this diesel BMW adds notably to the total cost. A comparable petrol vehicle with similar emissions would have a much lower NOx charge.

8. Category B Vehicles (Commercial Vehicles)

Commercial vehicles follow a different VRT structure. Category B vehicles include vans, trucks, and other goods vehicles. Instead of a CO2-based percentage of OMSP, commercial vehicles are generally charged a flat rate based on their weight and type.

For most light commercial vehicles (vans under 3.5 tonnes), the VRT is calculated at a flat rate of 13.3% of the OMSP, regardless of emissions. There is no NOx levy on commercial vehicles, and age depreciation is applied using the same schedule as passenger vehicles. However, certain commercial vehicles may qualify for reduced rates if they meet specific criteria related to payload, seating capacity, and design.

Our Commercial Vehicle VRT Calculator handles the specific rules for Category B vehicles, including the different treatment of crew cabs, double cabs, and panel vans.