Reduce your Income Tax Bill with a Pension
Tax relief reduces the actual cost of your pension. You do not have to pay tax on money that you put into a personal pension (This falls within the limits set out below). This is calculated at the highest rate of tax you pay (Currently 20% / 40%)
Monthly contribution = €100
Tax Relief (40%) = €40
Cost to you = €60
An employee who is aged 42 and earns €40,000 per year
can get tax relief on annual pension contributions up to €10,000.
There are no limits on the total amount you can pay into your pension, but tax relief is only available on the percentage amounts of your income and age outlined below.
Age during the year
Percentage of earnings
30 to 39
40 to 49
50 to 54
55 to 59
*Data according to Aviva & Zurich Pensions Dec 2019. Percentages shown are of earnings up to €115,000. If you’re a professional athlete, your limit will be 30% of earnings. These figures are subject to change in the future.