See exactly how much each €1 of pension contribution actually costs you after tax relief. The calculator applies Revenue's age-based contribution caps and computes relief at your marginal rate.
Additional Voluntary Contribution (AVC)
An extra pension payment on top of employer scheme contributions, qualifying for income-tax relief at the saver's marginal rate.
Approved Retirement Fund (ARF)
A post-retirement investment vehicle that holds your pension pot, lets you draw an income, and passes the residual to your estate.
Tax Credit
A flat amount that reduces the income tax you owe, applied after the tax is calculated — €1 of credit cancels €1 of tax.
Standard Rate Cut-off Point
The income threshold up to which Irish income tax is charged at the 20% standard rate. Income above the cut-off is taxed at the 40% higher rate.
Tax relief is the lesser of (a) your stated monthly contribution × marginal rate, and (b) the age-based monthly cap × marginal rate. The age cap is a percentage of your earnings (capped at €115,000): 15% under 30, 20% 30–39, 25% 40–49, 30% 50–54, 35% 55–59, 40% 60+.
Pension contributions reduce income tax at your marginal rate but do not reduce USC or PRSI — those are charged on gross pay. Where contributions push you back below the standard rate cut-off, the marginal relief drops from 40% to 20% for that slice. AVCs work the same way as regular contributions for relief purposes. At retirement the pot can flow into an ARF or annuity.
You get relief at your marginal income tax rate (20% standard, 40% higher) on contributions up to your age-based percentage cap × earnings (capped at €115,000). USC and PRSI are still charged on contributions — only income tax relief applies.
This calculator focuses on the immediate tax relief on contributions (one-year view). The pension projection calculator forecasts the future fund value at retirement using compound growth. Use this one if you're deciding whether to contribute more; use the projection one to see long-term outcomes.
No. Tax relief is at YOUR marginal rate. If your income is entirely below the standard-rate cut-off (€46,000 single in 2026), relief is at 20%. If part of your income is in the higher 40% band, contributions reduce the higher-rate band first — so the marginal effective relief is 40% on those contributions until your income drops back into the 20% band.
Additional Voluntary Contributions can be especially attractive at year-end if you're a 40% taxpayer with capacity under your age-based cap. The deadline is 31 October (or mid-November via ROS) of the following year. Speak to your scheme administrator.
If your total pension fund will exceed €2,000,000 (the Standard Fund Threshold), excess is subject to a 40% chargeable excess tax at retirement. Most workers won't hit this — but high earners and senior professionals should plan around it carefully.
Last updated: May 2026 · Rates sourced from Revenue
