How much pension tax relief can I claim?

An age-based percentage of earnings (15% under 30 rising to 40% at 60+), capped at €115,000 of earnings. Relief applies at your marginal income tax rate — 20% or 40%.

Do pension contributions reduce USC or PRSI?

No — relief applies to income tax only. USC and PRSI are still charged on your full gross pay.

Pension tax relief in Ireland

Age-based contribution limits

Under 30: 15% of net relevant earnings. 30–39: 20%. 40–49: 25%. 50–54: 30%. 55–59: 35%. 60+: 40%.

The earnings used for the calculation are capped at €115,000 per year for relief purposes. You can contribute above the limit, but the excess gets no Income Tax relief.

How the relief actually works

Contributions come off your taxable income before Income Tax is calculated. At a marginal rate of 40%, a €1,000 AVC costs you €600 net. They do NOT reduce USC or PRSI.

AVCs near year end

You can make a lump-sum AVC by 31 October of the following year (mid-November if filing through ROS) and back-date the relief to the prior tax year. A common move for self-assessed individuals and PAYE workers with side income.