Pension plan tax relief calculator
Find out how much income tax you save by contributing to a pension plan and the real cost of the contribution.
Indicative estimate using 2026 income-tax brackets: the state scale plus that of the region you pick (with none picked, the supplementary one), which changes the saving because the top regional rate varies widely between regions. Your individual contribution gets relief up to the lower of €1,500 and 30% of your net earned income. Employer contributions raise the joint limit to €10,000 but give you no direct income-tax saving (they are imputed as pay and deducted at the same time); their benefit is building wealth with tax deferral. Not tax advice.
Information, not tax or financial advice.
How the pension plan tax relief calculator works
Contributing to a pension plan lowers the base on which you pay income tax. The saving isn't the whole contribution but the contribution times your marginal rate: the more you earn, the more each euro saves you.
How to read the result. The tax saving is what you avoid paying this year. The real cost is what the contribution actually costs you.
Worked example (default values). You earn €40,000 and contribute €1,500 (the maximum with relief):
- Tax saving: €464.
- Real cost: 1,500 − 464 = €1,036 (you recover 31 %).
What about the employer contribution? If your employer pays into a workplace plan, the joint limit rises to €10,000 (€1,500 yours + up to €8,500 from the employer). But that part gives you no direct income-tax saving: it's imputed as pay and deducted at the same time, so the net effect in the year is close to zero. Its benefit is building wealth with tax deferral.
An important note. Your individual contribution only gets relief up to €1,500 (or 30 % of your earned income). When you withdraw the plan you'll be taxed on it as earned income. It's indicative and not tax advice.