Allowable Motor Expense Rates (2017)

Revenue amended the rates for claiming motoring expenses with effect from April 1, 2017.

Given that most businesses use these rates as the basis for Revenue-approved motor expense claims for businesses, you should be aware of the changes.

The key changes are:

  • They have increased the number of distance bands from two to four
  • They have changed the rates
    • The starting rate is now lower than the old starting rate
    • The second rate is higher than the old bottom rate
    • The third rate is higher than the old top rate
    • The fourth rate, the new top rate is lower than the old top rate.

New Motor Expenses Rates and Bands

Band  Engine Size Up to 1200cc

Rate € per Km

1201cc to 1500cc

Rate € per Km

1501cc and over

Rate € per Km

Band 1 0 – 1,500Km 0.3795 0.3986 0.4479
Band 2 1,501-5,500 Km 0.7000 0.7321 0.8353
Band 3 5,501-25,000 Km 0.2755 0.2903 0.3221
Band 4 5,501-25,000 Km 0.2136 0.2223 0.2585

Implementation of Motor Expense Rate Changes

Motor Expenses for travel between Jan 1 and Mar 31, 2017 should be calculated using the old rates.  After April 1, you then calculate rates based on the cumulative distance travelled from Jan 1 but using the new bands and rates.

The previous Motor Expense Rates (up to Mar 31, 2017)

Engine Size Up to 1200cc 1201cc to 1500 cc 1501cc and higher
Rate – € per Km Rate – € per Km Rate – € Per Km
Up to 6437km 0.3912 0.4625 .5907
6438 km and above 0.2122 0.2362 0.2646


For further information, go to the revenue website here

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