Are You Maximising Tax Relief on Your Pension Contributions?

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Now is the ideal time to review your pension and make any top-ups before 31st October 2025 in order to maximise available tax relief. Pension contributions qualify for Income Tax relief against your employment earnings.

The benefits of maximising your pension are huge. Firstly, you are providing for adequate retirement income and secondly you are reducing your current tax liability.

Income tax relief is available for pension contributions to any of the following pension plans:

• Occupational pension schemes
• Personal retirement saving accounts(PRSAs)
• Retirement annuity contracts
• Qualifying overseas plans

Tax relief on contributions to personal pension schemes is available at your marginal (highest) rate of tax subject to an income cap of €115,000 and contribution rates ranging from 15% to

Tax relief on contributions to personal pension schemes is granted at your marginal (highest) rate of tax. This is subject to an income ceiling of €115,000, with allowable contribution limits ranging from 15% to 40% of earnings depending on age:

Age                             % Net Relevant earnings*

<30                             15%

30-39                          20%

40-49                          25%

50-54                          30%

55-59                          35%

60+                             40%

* Subject to earnings cap of €115,000

If you are coming or returning to Ireland, you can get tax relief for pension contributions made to pre-existing plans with a pension provider in another EU Member State.

Subject to the maximum limits, you may make a pension contribution before the personal tax return filing date for 2024 (i.e. 31st October 2025) and carry the contribution back for inclusion on your 2024 tax return and thereby claim tax relief for 2024. 

 

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