Universal Social Charge (USC) rates

How USC works

The Universal Social Charge is a tax on your gross income, charged separately from Income Tax and PRSI. It is worked out band by band from the first euro — but only once your income passes the exemption threshold. You pay no USC at all if you earn €13,000 or less in the year; above that, USC applies to the whole of your income, from the 0.5% band up. Tax credits do not reduce it, and neither does a pension contribution — USC is charged on your full gross pay. (USC rates and the €13,000 exemption: Revenue, 2026.)

USC bands and rates 2026

The standard USC bands for the 2026 tax year. Each rate applies only to the slice of income that falls in its band.

(Bands: Revenue USC standard rates and thresholds — verified 26 July 2026.)

USC bands and rates 2025

The 2025 bands are the same except for the 2% ceiling, which was lower — see what changed in 2026 below.

(Bands: Revenue USC standard rates and thresholds — verified 26 July 2026.)

A worked USC figure

On a €35,000 salary in 2026, USC is charged across the first three bands: 0.5% of the first €12,012, 2% of the next €16,688, then 3% of the €6,300 above €28,700.

€35,000 in 2026 → €583 of USC.

That is the standard-band figure the calculator applies. The reduced rates and the non-PAYE surcharge below can change it, but neither applies to a standard working-age PAYE salary.

The €13,000 exemption is a cliff, not an allowance

The €13,000 figure is all-or-nothing: below it you pay nothing, but a single euro over it brings your entire income into charge from the 0.5% band up — it is not an allowance carved out of your income.

• Earn €13,000 → €0 USC.
• Earn €13,001 → USC on the whole €13,001, from the 0.5% band up.

Reduced rates (aged 70 or over, or a full medical card)

If your total income for the year is €60,000 or less and you are either aged 70 or over or hold a full medical card, USC is charged at 0.5% on the first €12,012 and 2% on the balance — the 3% and 8% bands do not apply. Above €60,000 the standard bands apply instead. Medical-card holders need to contact Revenue to have the reduced rate applied. (Reduced rates of USC: Revenue, verified 26 July 2026.)

The 11% top rate on non-PAYE income

A 3% surcharge applies to non-PAYE income above €100,000 — on top of the 8% band, giving a top USC rate of 11%. Non-PAYE income means self-employment income, but also rental and investment income; it is not limited to the self-employed. (Other rates of USC: Revenue, verified 26 July 2026.)

What is exempt from USC

Some income carries no USC — for example most Department of Social Protection payments and similar payments (Community Employment, VTOS, Youthreach, Mobility Allowance, foreign social-welfare payments), income already taxed under DIRT, employer travel passes and the Cycle to Work scheme, Rent-a-room Relief income, scholarship income, and statutory redundancy payments. Importantly, there is no USC relief for employee pension contributions — USC is charged on your full gross salary, before pension. (Payments and income exempt from USC: Revenue, verified 26 July 2026.)

What changed in 2026

The 2% band ceiling rose from €27,382 to €28,700 on 1 January 2026 — €1,318 more of your income is taxed at 2% instead of 3%. The 0.5% band top (€12,012), the 3% band top (€70,044) and the 8% rate are unchanged. (USC standard rates and thresholds: Revenue, verified 26 July 2026.)

How USC differs from Income Tax and PRSI

USC, Income Tax and PRSI are three separate charges, worked out three different ways — which is where most confusion comes from. USC is charged on your gross income, with no tax credits and no pension relief, once you pass the €13,000 cliff. Income Tax is charged on your income after any pension contribution, and your tax credits then come off the tax itself. PRSI is charged on your gross pay per pay period, with its own weekly threshold. See how all three land on a salary with the Ireland take-home pay calculator.