How much tax relief do I get on pension contributions?

Income tax relief at your highest rate. That's 40% on the part that comes off income above the 20% band (€44,000 single in 2026, €46,500 in 2027), and 20% on the rest. There's no relief from USC or PRSI on what employees pay.

Is there a limit on how much I can pay in?

Relief is limited to a share of your earnings that rises with age. It's 15% under 30, 20% in your 30s and 25% in your 40s. Then 30% at 50 to 54, 35% at 55 to 59 and 40% from 60. Earnings above €115,000 are ignored. What your employer pays doesn't count.

How much of my pension can I take tax-free?

A personal pension can pay 25% of the fund as a lump sum when you retire. The first €200,000 of lump sums in your lifetime is tax-free. The next €300,000 is taxed at 20%, and anything above €500,000 at your top rate.

Pensions

What paying more into your pension really costs

See the income tax an extra pension contribution saves you, what it really costs, and what it could grow to by retirement.

Self-assessment tool. The figures come from your own answers. It isn't advice, and you're responsible for what you file or claim. heypenny.ie is a trading name of Kinch Press. Read the disclaimer.

Common questions

How much tax relief do I get on pension contributions?: Income tax relief at your highest rate. That's 40% on the part that comes off income above the 20% band (€44,000 single in 2026, €46,500 in 2027), and 20% on the rest. There's no relief from USC or PRSI on what employees pay.
Is there a limit on how much I can pay in?: Relief is limited to a share of your earnings that rises with age. It's 15% under 30, 20% in your 30s and 25% in your 40s. Then 30% at 50 to 54, 35% at 55 to 59 and 40% from 60. Earnings above €115,000 are ignored. What your employer pays doesn't count.
How much of my pension can I take tax-free?: A personal pension can pay 25% of the fund as a lump sum when you retire. The first €200,000 of lump sums in your lifetime is tax-free. The next €300,000 is taxed at 20%, and anything above €500,000 at your top rate.

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