Pensions and tax

Taxation of DEASP pensions

Social welfare pensions paid by the Department of Employment Affairs and Social Protection (DEASP) are liable to Income Tax (IT). They are not liable to Universal Social Charge (USC) or Pay Related Social Insurance (PRSI). The DEASP gives Revenue information on the taxable amount of these pensions.

Please note, the following pensions are not interfaced from the DEASP to Revenue:

  • Blind Pension
  • Death Benefit Pension
  • Widower's or Surviving Civil Partner's Non-Contributory Pension.

How the tax on social welfare pensions is collected depends on whether you are a Pay As You Earn (PAYE) taxpayer or self-employed.

PAYE taxpayer

We reduce the annual tax credits and rate band on your Revenue Payroll Notification (RPN) to take account of the pension.

Self-employed

You must include details of any social welfare payments on your Form 11. You need to pay the tax due when making your annual IT payment.

Next: Taxation of private pensions