## What USC is
The Universal Social Charge was introduced in 2011 to replace the income and health levies. It applies to most income earned in Ireland, including employment, self employment, pensions, and rental income.
USC is calculated separately from PAYE but appears on the same payslip. Unlike PAYE, USC has no tax credits to reduce the amount owed.
## 2026 USC rates and bands
| Income band | Rate |
| --- | --- |
| Up to €12,012 | 0.5 percent |
| €12,012.01 to €27,382 | 2 percent |
| €27,382.01 to €70,044 | 4 percent |
| Above €70,044 | 8 percent |
| Self employed income above €100,000 | additional 3 percent surcharge |
USC operates on a sliding scale: each portion of income is charged at its respective rate, similar to income tax bands.
## USC exemption
If your total annual income is €13,000 or less, you are fully exempt from USC. This threshold protects lower earners and many part time workers.
## Worked example
Sinead earns €50,000 in 2026.
| Band | Income in band | Rate | USC |
| --- | --- | --- | --- |
| First €12,012 | €12,012 | 0.5 percent | €60.06 |
| Next €15,370 | €15,370 | 2 percent | €307.40 |
| Next €22,618 | €22,618 | 4 percent | €904.72 |
| Total USC | | | €1,272.18 |
## Worked example, higher earner
Cathal earns €100,000 in 2026.
| Band | Income in band | Rate | USC |
| --- | --- | --- | --- |
| First €12,012 | €12,012 | 0.5 percent | €60.06 |
| Next €15,370 | €15,370 | 2 percent | €307.40 |
| Next €42,662 | €42,662 | 4 percent | €1,706.48 |
| Above €70,044 | €29,956 | 8 percent | €2,396.48 |
| Total USC | | | €4,470.42 |
## How USC appears on your payslip
USC is shown as a single deduction line. Some payslips break it down by band but most show the cumulative figure. Check that your year to date USC is consistent with your gross earnings.
## Reduced rate for medical card holders
Medical card holders aged under 70 with annual income of €60,000 or less pay a reduced rate. Their top rate is capped at 2 percent rather than 4 or 8 percent.
## Pensioner exemption
People aged 70 or over with income at or below €60,000 also benefit from the reduced cap of 2 percent.
## Self employed surcharge
Self employed individuals earning above €100,000 pay an extra 3 percent on the excess. This effectively brings their top USC rate to 11 percent.
## Educational notice
USC rates and thresholds may change in future budgets. Always confirm current values on Revenue.ie before relying on them for tax planning.