Glossary · Pensions
Pension tax relief
Your pension contributions come off your income before income tax, so they cost less than they seem.
Contributions get relief at your top rate of income tax, within limits that rise with age. The limit runs from 15% of earnings under 30 to 40% at 60 and over, on earnings up to €115,000. USC and PRSI are still charged on the money you contribute.
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Related terms
Pension earnings cap · Relief at source (net pay) · Additional voluntary contributions (AVCs)
All terms · General information, not tax advice.