How do pension contributions work for self-employed in Ireland?

Pension contributions are one of the most tax-efficient strategies available to self-employed people in Ireland. You can deduct personal pension contributions from your income for tax purposes, subject to age-related percentage limits: - Under 30: 15% of net relevant earnings - 30–39: 20% - 40–49: 25% - 50–54: 30% - 55–59: 35% - 60 and over: 40% The maximum earnings on which relief is given: €115,000 per year. Contributions to a PRSA (Personal Retirement Savings Account) or Retirement Annuity Contract (RAC) qualify. You get income tax relief at your marginal rate (20% or 40%), but no USC or PRSI relief on contributions. Contributions can be made up to the Form 11 filing deadline of the following year and backdated — so you can make your 2024 pension contribution as late as mid-November 2025.

  • Tax relief on pension contributions at marginal rate (20% or 40%)
  • Age-based contribution limits: 15% (under 30) up to 40% (over 60) of net relevant earnings
  • Maximum earnings for relief: €115,000
  • No USC or PRSI relief on pension contributions
  • Can backdate contributions to previous tax year up to Form 11 filing deadline

Related Questions

  • What income tax rates apply to self-employed sole traders in Ireland in 2024?
  • How much should a sole trader in Ireland set aside for tax?
  • What is the Form 11 filing deadline for self-employed in Ireland for 2024?