Tax relief on pension contributions
Tax relief limits on pension contributions
Tax relief for employee pension contributions is subject to two main limits:
- an age-related earnings percentage limit
- and
- a total earnings limit.
Age-related earnings percentage limits
You can get tax relief up to the relevant age-related percentage limit of your earnings in any year.
You might have more than one source of income. If you do, this relief is only from the source of income in respect of which the contributions are made.
Age-related percentage limit for tax relief on pension contributions
|
Age
|
Percentage limit
|
|
Under 30
|
15%
|
|
30-39
|
20%
|
|
40-49
|
25%
|
|
50-54
|
30%
|
|
55-59
|
35%
|
|
60 or over
|
40%
|
For example, an employee who is aged 42 earns €40,000 per year. They can get tax relief on annual pension contributions up to €10,000.
Total earnings limit
The maximum amount of earnings taken into account for calculating tax relief is €115,000 per year.
Employer contributions to an employee's scheme are not taken into consideration when calculating the employee's earnings threshold.
Next: Contributions paid to a PRSA for AVC purposes