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Pension tax relief calculator (Ireland)
See how a pension contribution cuts your income tax — and what it really costs your take-home pay — with relief at your 20% or 40% marginal rate.
| Pension contribution into your pot | €5,000 |
| Take-home with pension | €36,667 |
| Take-home without pension | €39,667 |
| Real cost to you take-home drop | €3,000 |
Paying 10% (€5,000) of a €50,000 salary into a pension grows your pot by €5,000 but reduces take-home by only €3,000 — €2,000 comes back as income-tax relief at 40%.
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How pension tax relief works in Ireland (2026)
A pension contribution is taken from your pay before income tax, so it reduces your taxable income. You get relief at your marginal rate:
| Your top rate | Relief on each €100 contributed |
|---|---|
| 20% (income below the cut-off) | €20 back — €100 costs you €80 |
| 40% (income above the cut-off) | €40 back — €100 costs you €60 |
Important: in Ireland the relief is on income tax only. USC and PRSI are still charged on your full gross salary, so the relief equals the contribution times your income-tax rate. That's why €5,000 into a pension on a €50,000 salary cuts tax by €2,000 (40% of €5,000) and your take-home falls by just €3,000.
Relief is capped by an age-related percentage of earnings (15% under 30, rising to 40% at 60+), within an earnings limit. This tool shows the take-home effect of the percentage you enter; check your age band and the cap with Revenue. See your base figures on the net salary calculator.
People also ask
How does pension tax relief work in Ireland?
Contributions come off income before tax, so you get relief at 20% or 40%. €5,000 on a €50,000 salary cuts income tax by €2,000, so take-home drops by only €3,000.
Does a pension reduce USC and PRSI?
No — relief applies to income tax only. USC and PRSI are charged on your full gross salary.
How much can I contribute with relief?
Up to an age-related percentage of earnings (15% under 30 → 40% at 60+), within an earnings cap.
Related Ireland calculators
Sources: revenue.ie, Budget 2026 (gov.ie). Estimates for planning only — not tax or financial advice. Check your age-related limit with Revenue.