Pension contributions are one of the most tax-efficient ways to save for retirement. You get tax relief at your marginal rate—20% or 40%—making every €100 you contribute cost as little as €60 from your pocket.
Our specialists help people claim tax relief on pension contributions alongside other reliefs. Here's how pension tax relief works in Ireland.
📊 Pension Tax Relief
- Relief rate: 20% or 40% (your marginal rate)
- Age limits: Contribution limits increase with age
- Employer contributions: Not taxed as income
- Backdate: Can carry forward unused relief
How Pension Tax Relief Works
When you contribute to an approved pension, you get tax relief at your marginal rate. If you pay 40% tax, a €100 contribution effectively costs you €60—the other €40 is relief.
Relief is usually given automatically if your employer deducts contributions from your wages. If you make Additional Voluntary Contributions (AVCs) or have a personal pension, you may need to claim the relief.
Contribution Limits
The maximum you can contribute (as a % of earnings) and get relief on depends on your age:
The maximum earnings limit for relief is €115,000.
💡 Real Example
Sarah (age 35) earns €50,000 and contributes €5,000 to her pension. At the 40% tax rate, her relief is €2,000. Combined with rent credit and medical expenses she'd never claimed, her total refund was €4,890.
Other Reliefs You May Be Missing
Beyond pension relief, you may also be entitled to:
- Rent tax credit – up to €1,000/year
- Medical expenses – 20% relief
- Flat rate expenses – for many professions
- WFH relief – for remote workers
The average refund our clients receive is €1,080.
Have a Pension?
Our experts will check your pension relief and find all other reliefs too.
Start Your Tax Review →No refund, no fee • Average refund €1,080 • TAIN: 77632V
Frequently Asked Questions
Is pension relief automatic?
For workplace pensions deducted from salary, usually yes. For personal pensions or AVCs, you may need to claim.
Can I carry forward unused relief?
Yes—if you didn't use your full contribution limit in previous years, you may be able to carry it forward.
What about employer contributions?
Employer contributions aren't taxed as your income—they're an additional benefit on top of your own tax relief.
How do I claim relief on AVCs?
For Additional Voluntary Contributions (AVCs), you need to claim relief through Revenue. Our specialists can review your AVC contributions and ensure you're getting the full relief you're entitled to.