Income Tax relief is available on pension contributions, and it is provided at your marginal (highest) rate of tax. However, there are specific limits and conditions:

  1. Age-Related Limits: The percentage of earnings that can be contributed to a pension plan and qualify for tax relief depends on your age:
    • Under 30: 15% of earnings
    • 30–39: 20% of earnings
    • 40–49: 25% of earnings
    • 50–54: 30% of earnings
    • 55–59: 35% of earnings
    • 60 and over: 40% of earnings
    • Our FastTax.ie pension relief calculator will automatically tell you the maximum amount you can contribute to a pension to maximise your relief. Try our free calculator.
  1. Earnings Cap: The maximum amount of earnings that qualify for tax relief is €115,000. Even if your income exceeds this amount, tax relief is calculated only on the first €115,000.
  2. Eligible Pension Plans: Tax relief is available for contributions to:
    • Occupational pension schemes
    • Personal Retirement Savings Accounts (PRSAs)
    • Retirement Annuity Contracts (RACs)
    • Pan-European Personal Pension Products (PEPPs)
    • Qualifying overseas plans
  1. No Relief for USC or PRSI: Tax relief is only available for Income Tax, not for Universal Social Charge (USC) or Pay Related Social Insurance (PRSI).
  2. Claiming Relief:
    • If contributions are deducted from your salary, relief is applied automatically.
    • If not deducted at source, claim relief by filing an income tax return through myAccount or ROS.
  1. Backdating Relief: You can make a pension contribution before 31st October and elect to backdate the relief to the previous tax year.
  2. Carrying Forward Relief: Unused relief can be carried forward to future tax years.

FastTax.ie’s calculators make it easy for to you to ensure you are making the highest possible contributions for tax efficiency. For a quick estimate, see our free calculator: https://fasttax.ie/tax-calculators/pension-contributions-tax-relief-calculator/