L.N. 52 of 2026 titled Tax Rebate (Pensioners)(Amendment) Rules, 2026, has been issued stipulating that the Tax Rebate (Pensioners) Rules shall cease to apply with respect to pension income earned after 31 December 2025. Rules in relation to the rebate applicable to pensions earned in calendar year 2026 have been included as part of the Pensions (Tax Exemption) Rules, as outlined below.
L.N. 53 of 2026, introduces the following amendments to the Pensions (Tax Exemption) Rules:
- the capping for the full exemption covering pension income for year of assessment 2027 and subsequent years has been updated from €16,636 to €37,104; and
- for year of assessment 2027, and subsequent years, individuals availing themselves of the married rates of tax and who benefit from the exemption mentioned in (1) above, shall be granted a tax rebate to be set-off against the tax on the chargeable income. Such tax rebate will not give rise to any tax refund and may not be carried forward. The tax rebate is calculated as follows, capped at €540:
Tax rebate = (chargeable income less €15,000) multiplied by 15%.
