2026 Marginal Tax Relief: Up to 40% Back on Pension Contributions

Pension AVC Tax Relief Calculator Ireland 2026

Calculate your exact tax back on Additional Voluntary Contributions (AVCs). Check your age limit (15%–40%), €115,000 earnings cap, and true net out-of-pocket cost.

High-Intent Pension AVC Scenarios

Your Pension Details & Age

25% Limit
Statutory earnings ceiling for tax relief is €115,000 (TCA 1997 s. 774).
Regulatory & Statutory AccuracyTax Year 2026 Verified
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Revenue.ie Statutory Rates

Calculations strictly align with the Finance Act 2025/2026 and official rate schedules published by the Irish Revenue Commissioners.

Chartered Accountant Reviewed

Formulas designed and verified by a qualified Chartered Accountant (ACA) for Pension AVC Tax Relief Calculator.

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Calculated entirely in your device memory. Zero salaries, income data, or personal details are transmitted or stored on any server.

Pension AVC Tax Relief Summary40% Effective Relief
Tax Refund from Revenue€2,000Paid back by Revenue via payroll / myAccount refund
Your True Net Cost€3,000To put €5,000 into your pension pot

The 60c Rule: For every €1,000 you invest in an AVC at the 40% higher rate, Revenue contributes €400 in tax relief, meaning your pension pot grows by €1,000 while costing you only €600 in net salary.

Annual Statutory Allowance & Headroom25% of €80,000

Total Utilised: €9,000Max Cap: €20,000
Existing (€4,000) AVC Relief (€5,000)Remaining: €11,000

Note on PRSI & USC: Pension tax relief reduces PAYE Income Tax only. PRSI (4.20%) and Universal Social Charge (USC) continue to apply to your total gross earnings.

Tax Relief by Band (2026 Rates)

Tax BandAVC RelievedRelief RateTax Saved
Higher Rate Band (> €44,000)€5,00040%€2,000
Standard Rate Band (≤ €44,000)€020%€0
Total Direct Tax Refund€5,000-€2,000

The October 31 / November 15 Backdating Rule

Under Section 787 of the Taxes Consolidation Act 1997, you can make a lump-sum AVC contribution up to 31 October (or mid-November if filing via ROS) and elect to attribute the relief to the previous tax year.

  1. Make your AVC payment to your pension provider and obtain a Certificate of Contribution.
  2. Log into Revenue myAccount > "Review your tax 2022–2025".
  3. Enter your AVC amount in the pension relief section.
  4. Revenue will recalculate your prior-year liability and issue a direct electronic refund into your bank account.
Official statutory rule: TCA 1997 s. 774/787Read Pension Tax Guide