The Universal Social Charge is the deduction people in Ireland most often forget when they estimate their pay. It is smaller than income tax, but it starts at lower incomes, no tax credit reduces it, and it has a cliff edge that catches people on part-time and low pay.
This guide sets out the 2026 USC bands, who qualifies for the reduced rates, and what USC comes to at common incomes. The USC calculator shows the band-by-band figure for any income.
What USC is
USC is a tax on income, collected by Revenue alongside income tax. For employees it comes out of each payslip through PAYE. Three things make it different from income tax:Revenue
- it has its own bands and rates, separate from the income tax rate band;
- tax credits do not reduce it;
- it is charged on your gross income before pension contributions.
Everyone is assessed individually. A married couple or civil partners each pay USC on their own income, even if they are jointly assessed for income tax. On your payslip USC appears as its own line, next to PAYE income tax and PRSI, so you can check it against the figures in this guide.
USC bands and rates for 2026
If your income is over the exemption limit, USC is charged on all of it in these bands:
| Income for the year | USC rate |
|---|---|
| Up to €12,012 | 0.5% |
| €12,012 to €28,700 | 2% |
| €28,700 to €70,044 | 3% |
| Above €70,044 | 8% |
Like income tax, each rate applies only to the slice of income in its band. Budget 2026 raised the ceiling of the 2% band, so a little more income is charged at that rate than in 2025. The other rates and thresholds did not change.gov.ie
The exemption limit and the cliff edge
If your total income for 2026 is €13,000 or less, you pay no USC at all.Revenue
The limit is not an allowance, though. Once your income goes over it, USC is charged on your whole income from the first euro, not just on the part above the limit. So the bill jumps:
- income of €13,000: USC of €0.00;
- income of €13,001: USC of €79.84.
If you work part-time and your income is close to the limit, it is worth knowing where you will land for the year. Social welfare payments do not count towards the limit, as they are exempt from USC.
USC at common incomes
For a person under 70 without a full medical card, 2026 USC works out as follows:
| Income | USC for the year | A month | Effective rate | Top band reached |
|---|---|---|---|---|
| €20,000 | €219.82 | €18.32 | 1.099% | 2% |
| €30,000 | €432.82 | €36.07 | 1.443% | 3% |
| €40,000 | €732.82 | €61.07 | 1.832% | 3% |
| €50,000 | €1,032.82 | €86.07 | 2.066% | 3% |
| €60,000 | €1,332.82 | €111.07 | 2.221% | 3% |
| €80,000 | €2,430.62 | €202.55 | 3.038% | 8% |
| €100,000 | €4,030.62 | €335.89 | 4.031% | 8% |
| €150,000 | €8,030.62 | €669.22 | 5.354% | 8% |
The effective rate stays low for most earners, because the first slices of income are charged at the bottom rates. The top rate of 8% is what makes USC noticeable on higher pay: above €70,044, every extra euro pays it, on top of the higher rate of income tax and PRSI.
Revenue publishes worked examples of the same band-by-band method.Revenue Here is the breakdown at €50,000:
| Line | Income in band | USC |
|---|---|---|
| 0.5% band | €12,012.00 | €60.06 |
| 2% band | €16,688.00 | €333.76 |
| 3% band | €21,300.00 | €639.00 |
| 8% band | €0.00 | €0.00 |
| Total USC | €50,000.00 | €1,032.82 |
Who pays the reduced rate
You pay USC at reduced rates if your income for the year is €60,000 or less and either:Revenue
- you are aged 70 or over, or
- you hold a full medical card. A GP visit card does not count.
The reduced rates for 2026 are:
| Income | Reduced USC rate |
|---|---|
| Up to €12,012 | 0.5% |
| The balance | 2% |
In other words, the 3% and 8% bands do not apply. On €40,000, a medical card holder pays €619.82 instead of €732.82. A person aged 70 or over on the same income pays the same €619.82.
The income limit is another cliff edge. At €60,000 a medical card holder pays €1,019.82; at €60,001 the reduced rates no longer apply and the bill is €1,332.85. Budget 2026 extended the medical card concession to the end of 2027.
The exemption still comes first: a person aged 70 or over with income of €13,000 or less pays no USC at all.
What USC is charged on
USC is charged on your total income, including income from employment and self-employment.Revenue Some points that often cause confusion:
- Pension contributions do not reduce it. Revenue says there is no relief from USC for employee pension contributions, so a contribution that lowers your income tax leaves your USC unchanged.Revenue
- Social welfare payments are exempt. Payments from the Department of Social Protection, such as the State Pension, do not count for USC.Revenue
- Tax credits do not reduce it. The Rent Tax Credit, for example, only reduces income tax.
USC and income tax compared
People often assume USC follows the income tax rules. It does not, and the differences explain most surprises on a payslip:
| Income tax | USC | |
|---|---|---|
| Charged on | Taxable income, after pension relief | Gross income, before pension contributions |
| Bands | Your rate band, which depends on your circumstances | The same bands for everyone (or the reduced rates) |
| Tax credits | Taken off the bill | Do not apply |
| Couples | Usually jointly assessed | Each partner separately |
| Low incomes | Credits can cancel the bill | Nil up to the exemption limit, then charged on all income |
So a pension contribution that saves you income tax at 40% saves you nothing in USC, and a married couple cannot share USC bands the way they share an income tax band.Revenue
Three examples
A part-time worker on €12,500. The income is below the €13,000 limit, so USC is €0.00. If extra hours took the year’s income past the limit, USC would apply to the whole amount.
A retired person, aged 70 or over, with an occupational pension of €25,000. The reduced rates apply, as income is under €60,000. USC comes to €319.82. At this income the reduced and standard rates give the same result, because the income does not reach the 3% band. Any State Pension the person also receives is a social welfare payment and does not count.
An employee on €75,000. Part of the income is in the top band, so USC is €2,030.62, or €169.22 a month. Paying 10% of salary into a pension would not change that figure, although it would cut income tax. The salary calculator shows both effects together.
The surcharge on non-PAYE income
There is an extra USC charge of 3% on non-PAYE income above €100,000 a year. It mainly affects self-employed people with high profits.Revenue It does not apply to salaries paid through PAYE, and the USC calculator does not include it.
USC on your payslip
Your employer gets your USC rate bands from Revenue on your Revenue Payroll Notification, spread across the year in the same way as your income tax rate band. If your pay is steady, each payslip’s USC is close to the annual figure divided by your number of paydays: on €50,000, about €86.07 a month or €19.86 a week.
If you think your income for the year will stay at or below the exemption limit, or you have a new medical card, check that your USC details in myAccount are right, so you do not overpay during the year.
Work out your USC
Enter your income and tick the boxes if you are 70 or over or have a full medical card.
€1,032.82
- Per month
- €86.07
- Per week
- €19.86
- Effective rate
- 2.066%
- Top band reached
- 3%
- USC is charged on gross income before pension contributions, and on your whole income once it is over €13,000.
- Payroll deducts USC on a cumulative basis through the year, so your weekly or monthly amount is about the annual figure divided evenly.
- Self-employed income over €100,000 carries a further 3% surcharge, which is not included here.
USC: €1,032.82 for 2026
Show the breakdown
| Line | Income in band | USC |
|---|---|---|
| 0.5% band | €12,012.00 | €60.06 |
| 2% band | €16,688.00 | €333.76 |
| 3% band | €21,300.00 | €639.00 |
| 8% band | €0.00 | €0.00 |
| Total USC | €50,000.00 | €1,032.82 |
- 0.5%€60
- 2%€334
- 3%€639
USC is one of three deductions from Irish pay. To see it alongside income tax and PRSI, use the Ireland salary calculator, or see the salary after tax tables for common salaries. PRSI, which rose on 1 October 2026, is explained in PRSI 2026: the October rate rise and the PRSI credit. For income tax bands and credits, read Irish tax credits and the standard rate cut-off point, and for the whole picture, Take-home pay in Ireland 2026.
