If my taxable income from employment is Euro 32000 and my standard rate
cut off point is Euro 28000 and I have share dividend income of Euro 3000.
This would mean that my marginal tax rate is 42% and I would pay this rate on Euro 7000.
If I make Prsa contributions of 25% of my earned income i.e. Euro 8000,
am I correct in assuming that I will get tax relief of 42% on Euro 7000 and
20% on Euro 1000 ?
Note this post about dividend income and pension contributions. I suspect that you actually get 42% relief on €4K and 20% relief on the remaining €3K. Don't forget to claim PRSI relief too.