Pension Tax Relief How much you can claim, and what it really costs
See the maximum pension contribution you can claim tax relief on in 2026, and what each contribution actually costs your take-home pay after relief.
You pay tax at 47.24% on your top euro, so every €100 you pay into your pension costs you just €53 in take-home pay. The rest is income tax you would have paid anyway.
What each contribution really costs
| Per month | Per year | Tax relief | Real cost / yr | Real cost / mo |
|---|---|---|---|---|
| €100 | €1,200 | €480 | €720 | €60 |
| €250 | €3,000 | €1,200 | €1,800 | €150 |
| €500 | €6,000 | €2,400 | €3,600 | €300 |
| €1,000 max | €12,000 | €4,800 | €7,200 | €600 |
Relief is given on income tax only; USC and PRSI still apply to the full salary. Figures assume standard tax credits. To model a specific contribution alongside every other credit and relief, use the take-home pay calculator.
Frequently Asked Questions
How much can I pay into a pension with tax relief?
The limit rises with age: 15% of earnings under 30, then 20% (30 to 39), 25% (40 to 49), 30% (50 to 54), 35% (55 to 59) and 40% at 60 and over. It applies to earnings up to €115,000, so the absolute maximum relief is on €46,000 a year.
How does pension tax relief work?
Contributions come off your income before income tax, so you get relief at your marginal rate, 40% or 20%. USC and PRSI are still charged on the full salary, so a €100 contribution costs a higher-rate taxpayer €60 in take-home.
Does it lower my take-home pay?
Yes, but by less than you put in. A higher-rate taxpayer paying €500 a month sees take-home fall by about €300; the other €200 is tax relief now invested in the pension rather than paid to Revenue.