Motor Tax for Commercial Vehicles

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Commercial Vehicle Motor Tax 2016 

Although there was no change in Motor Tax on cars and motorbikes in the recent budget 2017, we did see from the beginning of the year some big reductions in the tax for commercial vehicles which came into effect on January 1st, 2016 replacing the original 20 tax rates with just five. Commercial Tax Rates now range from €92 to €900 compared to the previous rates, ranging from €333 rising to €5175.

Motor tax is based on the weight of the vehicle which could mean that some commercial vehicle owners of larger lorries can pay as much as €5195 in road tax a year.


Minister for Finance, Michael Noonan had this to say in budget 2016, “Road tax for large goods vehicles in Ireland is too high by comparison with the regime applying in Northern Ireland and the rest of the UK. This is causing distortions in the haulage industry and increasing costs across the economy.”

A simplified scheme means that there are now just 4 levels of motor tax for commercial vehicles. The loss of revenue for the government is estimated at €45 million a year – but it is hoped it will encourage more haulage companies to base here rather than in Northern Ireland. 

This is a summary of the commercial vehicle road tax amounts from 2016

Weight   kg                                      2016 Annual Tax

Electrical Goods Vehicles                €92

Under  3000                                   €333  (no change)

3001 to 4000                                  €420  (no change)

4001 to 12000                                €500  (was €543 to €2490)

12001   plus                                    €900  (was up to €5195)


Justin Kavanagh
Justin Kavanagh is a recognised leader in automotive intelligence and vehicle data supply to the entire motor industry. He has almost 20 years experience in building systems from the ground up. As the Managing Director of Vehicle Management System, he understands the need and importance of trustworthy and reliable vehicle history and advice to both the trade and the public.
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