How is tax relief on pension contributions calculated?

You can avail of tax relief against your earnings for your pension contributions in Ireland. 

Tax relief on pension contributions in Ireland is calculated based on two factors:

  1. Age
  2. A total earnings threshold

Depending on your age, you can claim tax relief of between 15% and 40% on your pension contributions. The maximum salary or earnings taken into account for calculating tax relief on these contributions is €115,000 per year. The earnings threshold does not take into account your employer’s contributions to your pension scheme.

Using a pension contribution calculator allows you to calculate the maximum amount you can put towards your pension based on your age and earnings.

Pension Contribution Limits

Age is one of the two determining the maximum amount you can contribute to your pension with tax relief. Those aged under 30 years can contribute up to 15% rising to 40% for those aged over 60 years.

Age Percentage 
<30 15%
30-39 20%
40-49 25%
50-54 30%
55-59 35%
60+ 40%

FAQs

Your pension contribution is deducted from your gross income before it is taxed, essentially  meaning that you save at your highest rate of tax with the full amount going towards your retirement savings.

The deadline for submitting your pension contributions and filing a tax return is 31st October if you are submitting by paper, or 14th November if you are submitting online through the Revenue Online Service.

Submitting late tax returns may result in penalties such as surcharges or fines, so it is highly recommended that you submit your returns by the due date.

If you make your submission by the tax deadline in 2025, you can backdate your pension contributions to 2024.

Relevant earnings is a person’s taxable net, non-pensionable, income received from employment or benefit-in-kind. This is subject to an upper limit of €115,000 from all income, whether through employment or self-employment, or both.

The amount of tax relief you will get depends on the amount of money you invest into your pension. Your age determines how much you can contribute with tax relief. The earnings threshold is €115,000. 

You can contribute more than the limit, however you will not receive tax relief.

Similar Calculators

Pension retirement calculator (how much you need to contribute to reach your retirement goals)

Pension lump sum calculator (how much you can withdraw from your pension tax free)

Defined benefit calculator (how much is your DB pension worth at today’s transfer rates)