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

Optional adjustmentsPension, bonus, auto-enrolment

Your age sets pension relief

Pension contribution0% · €0

At age 35, Revenue relief is limited to 20% of earnings, with earnings capped at €115,000.

Bonus / RSUs€Auto-enrolment pensionMyFutureFund · 1.5% of pay in 2026

Your take-home

€44,925

€3,743.72 a month

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%

Browse salary guides See where this salary ranks

2026 Class A estimate assuming uniform weekly pay: 4.2% through September and 4.35% from October, blended over the year. Actual PRSI is calculated per pay period and can differ with bonuses, unpaid weeks or a 53-week payroll year. Figures are not stored; calculator events use only a broad salary band.

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.