Pension tax relief · 2026

The cheapest way to cut your tax bill

Every euro you put into a pension is taken off your pay before income tax, so the relief lands at your top rate. At 40%, a €500 monthly contribution really costs you €300. Move the pension slider below to see the saving on your salary.

Move the pension slider to see the relief

Gross annual salary

€

Your situation

Pension contribution0% · €0

Bonus / RSUs€Auto-enrolment pensionMy Future Fund · 1.5% of pay

Your take-home

€44,925

€3,743.72 a month · a year

Gross income€60,000

Income tax20% / 40% less credits− €11,200

USC− €1,333

PRSI− €2,543

Net take-home€44,925

Effective rate25.1%

Marginal rate47.2%

Class A PRSI, 2026 bands. PRSI uses the full-year blended rate (4.2% to Sept, 4.35% from October). Estimate only — check against Revenue for your exact circumstances.

How pension tax relief works

Your pension contribution is deducted from your income before income tax is worked out. So if you pay tax at 40% and contribute €1,000, your income-tax bill falls by €400 — the contribution costs you €600 of take-home, but €1,000 lands in your pension. A standard-rate taxpayer gets 20% back.

One thing to note: the relief is for income tax only. USC and PRSI are still charged on your full salary.

How much you can put in

Relief is limited to a share of your earnings that grows as you get older, so older savers can shelter more:

Your age	Max % of earnings with relief
Under 30	15%
30 to 39	20%
40 to 49	25%
50 to 54	30%
55 to 59	35%
60 and over	40%

Earnings are capped at €115,000 for this calculation, and AVCs (additional voluntary contributions) count towards the same limit.

Pension vs My Future Fund

Auto-enrolment — My Future Fund — does not get this tax relief. Instead you get an employer match and a State top-up. For a 40% taxpayer, a personal pension's relief can be worth more than the auto-enrolment top-up, so it is worth comparing before you decide to stay enrolled.

Pension tax relief — common questions

How much tax relief do I get on a pension in Ireland?

You get relief at your marginal rate of income tax. For a higher-rate taxpayer that is 40%, so a €100 contribution costs you €60. A standard-rate taxpayer gets 20% back. Relief applies to income tax only, not USC or PRSI.

What is the maximum pension contribution for tax relief?

Relief is capped at a percentage of your earnings that rises with age — from 15% under 30 to 40% at 60 and over — and earnings themselves are capped at €115,000 for this purpose. Contributions above the limit do not get relief in that year.

Is a pension better than My Future Fund?

For a higher-rate taxpayer, a personal pension is often more tax-efficient because it gets 40% relief, which auto-enrolment does not. My Future Fund gives you an employer match and a State top-up instead. Many people compare the two before deciding whether to stay auto-enrolled.

Do pension contributions reduce USC and PRSI?

No. Pension tax relief applies to income tax only. USC and PRSI are still charged on your full gross pay, so a contribution lowers your income-tax bill but not your USC or PRSI.