New Carbon Dioxide (CO2) Motor Tax System for Cars

Moving to a CO2 based system for cars.

Motor tax for cars is currently based on the engine capacity of the vehicle.  The amount of motor tax you pay relates to the size of your vehicle engine - the more powerful your vehicle, the higher the cost of your motor tax.

For new cars registered from 1st July 2008, motor tax charges will be determined on the basis of the CO2 emissions level, based on seven CO2 bands.  Rates (which can be viewed by clicking on the link below) will range from €100 a year for the greenest cars to €2,000 for cars with the highest emissions rating.

New cars registered between 1st January 2008 and 30th June 2008 will initially have their motor tax charged on the basis of engine size.  If it is beneficial for these cars to switch to the CO2 based motor tax system, this will happen on the first renewal of motor tax after 1st July 2008.  New cars which are registered in the first 6 months of 2008 whose tax would be more under the CO2 based system will continue to pay motor tax on the basis of engine size.

The new CO2 based system will not apply to second-hand imports that were registered abroad prior to 2008.

The aim of the new motor tax system is to encourage the use of smaller, cleaner, fuel-efficient cars in the fight against climate change by reducing the emission of carbon dioxide (CO2) from cars to help protect the environment and improve local air quality.

Cars registered before 1st January 2008 will continue to pay motor tax on the basis of engine size.

For more information on this topic click on the Frequently Asked Questions on the New CO2 based Motor Tax System.


Motor Tax Rates Based on CO2 Emissions - Effective from 1st July 2008 (PDF Format)

Frequently Asked Questions on the New CO2 based Motor Tax System (PDF Format)

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