Pensions and tax

Taxation of DSP pensions

Social welfare pensions paid by the Department of Social Protection (DSP) are liable to Income Tax (IT). They are not liable to Universal Social Charge (USC) or Pay Related Social Insurance (PRSI). The DSP gives Revenue information on the taxable amount of these pensions.

Please note, the DSP do not give Revenue information regarding the following pensions:

  • Blind Pension
  • Death Benefit Pension
  • Widower's or Surviving Civil Partner's Non-Contributory Pension.

How the tax on social welfare pensions is collected depends on whether you are a Pay As You Earn (PAYE) taxpayer or self-employed.

PAYE taxpayer

We reduce the annual tax credits and rate band on your Tax Credit Certificate (TCC) to take account of the pension.

Self-employed

You must include details of any social welfare payments on your Form 11. You need to pay the tax due when making your annual IT payment.

Next: Taxation of private pensions