Pensions
Pension contribution limits: how much you can pay in with tax relief
Last updated 16 October 2026
Relief on your own pension contributions is capped by age, from 15% of earnings under 30 to 40% from 60, on earnings up to €115,000.
You can pay as much as you like into a pension, but income tax relief only applies up to a limit each year. The limit is a share of your earnings that rises with your age, and only the first €115,000 of earnings counts.
The age-related limits
| Your age in the year | Share of earnings | Most you can get relief on, at €115,000 or more |
|---|---|---|
| Under 30 | 15% | €17,250.00 |
| 30 to 39 | 20% | €23,000.00 |
| 40 to 49 | 25% | €28,750.00 |
| 50 to 54 | 30% | €34,500.00 |
| 55 to 59 | 35% | €40,250.00 |
| 60 or over | 40% | €46,000.00 |
Revenue gives the example of an employee aged 42 earning €40,000. They can get relief on up to €10,000.00 a year, which is 25% of their pay.
What counts as earnings
The limit is worked out on the earnings the pension is linked to. That is your salary from that job, or your trading profit if you are self-employed. Rental income, dividends and deposit interest don't count. If you have more than one job, relief is only from the income the contributions are paid out of.
Above the earnings cap
Someone aged 52 earning €150,000 who pays €40,000 into a pension in 2026:
| Earnings counted (capped) | €115,000.00 |
| Limit at 30% | €34,500.00 |
| Paid in | €40,000.00 |
| Above the limit: no relief this year | €5,500.00 |
| Income tax relief | €13,800.00 |
Employer contributions are separate
What your employer pays in doesn't use up your personal limit. For a Personal Retirement Savings Account (PRSA), though, there is a catch. From 1 January 2025, employer contributions above 100% of your salary in a year are taxed as a benefit in kind (a perk from work).
Relief is income tax only
Relief is given at your highest rate of income tax: 40% on the part of a contribution that comes off income above the standard rate band, 20% on the rest. There is no relief from USC or PRSI on your own contributions.
To see your own limit, the room left and the relief to claim, use the pension contribution calculator.
Work it out
Sources
- Revenue: Tax relief limits on pension contributions (age-related percentages, €115,000 earnings limit) (checked 25/10/2026)
- Revenue: Tax relief on pension contributions: overview (relief at your marginal rate, no USC or PRSI relief) (checked 20/10/2026)
- Revenue: Personal Retirement Savings Accounts (employer contributions above 100% of salary are a benefit in kind from 2025) (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.