Pension tax relief by age
Updated 12 June 2026
Personal pension contributions in Ireland attract income tax relief at your marginal rate — 40% for higher-rate taxpayers, 20% for standard-rate taxpayers. A €100 contribution costs a higher-rate taxpayer €60 in take-home pay. (There is no relief from USC or PRSI.)
The age-related limits
Relief is limited to a percentage of your earnings that rises with age:
| Age | Limit (% of net relevant earnings) |
|---|---|
| Under 30 | 15% |
| 30–39 | 20% |
| 40–49 | 25% |
| 50–54 | 30% |
| 55–59 | 35% |
| 60 and over | 40% |
Two caps apply on top of the percentages:
- Earnings cap: only the first €115,000 of annual earnings counts. A 45-year-old earning €200,000 gets relief on at most 25% × €115,000 = €28,750 per year.
- Lifetime cap: the Standard Fund Threshold limits the total pension fund that enjoys favourable tax treatment.
You can contribute more than your limit, but the excess gets no relief in that year — unused relief can be carried forward to future years.
Employer contributions
Employer contributions to an occupational scheme or (since 2025) to a PRSA do not use up your personal age-related limit. This makes the split between personal and employer contributions significant for directors and employees with flexible remuneration — a topic to raise with an advisor or accountant.
How relief is claimed
- PAYE employees contributing through payroll usually get relief at source.
- Otherwise, relief is claimed from Revenue (myAccount for PAYE, Form 11 for self-assessed). Contributions made before the income tax filing deadline can be backdated against the previous tax year’s income.
Current figures with source links are on our tax relief reference page, checked against Revenue’s published limits.
This guide is general information, not financial or tax advice. Tax treatment depends on individual circumstances and may change. ComparePensions is not regulated by the Central Bank of Ireland. Consult a regulated financial advisor or tax practitioner before acting.
Frequently asked questions
- How much pension tax relief can I get?
- Personal pension contributions attract income tax relief at your marginal rate — 40% for higher-rate taxpayers, 20% for standard-rate. The amount that qualifies is limited to an age-related percentage of your earnings, from 15% under age 30 up to 40% at age 60 and over. There is no relief from USC or PRSI.
- What are the age-related contribution limits?
- Relief is limited to a percentage of net relevant earnings that rises with age: 15% under 30, 20% for ages 30–39, 25% for 40–49, 30% for 50–54, 35% for 55–59, and 40% for 60 and over.
- Is there an earnings cap on pension tax relief?
- Yes. Only the first €115,000 of annual earnings counts toward the age-related percentage. For example, a 45-year-old earning €200,000 gets relief on at most 25% of €115,000, which is €28,750 per year. A separate lifetime cap, the Standard Fund Threshold, limits the total fund that enjoys favourable tax treatment.
- Do employer contributions use up my age-related limit?
- No. Employer contributions to an occupational scheme or, since 2025, to a PRSA do not use up your personal age-related limit. This makes the split between personal and employer contributions significant for directors and employees with flexible remuneration.