The headline rule
If your total annual income for USC purposes is €13,000 or less in 2026, you are fully exempt. There is no USC at any rate, and no requirement to file in respect of USC.
The threshold is a cliff. €13,000.01 of income brings the entire amount into charge, starting from €0 at the lowest band.
Income that counts toward the €13,000
- Wages and salaries
- Pension income
- Self employment profits
- Rental income
- Foreign employment income (if Irish resident)
- Most social welfare payments are excluded
Worked example, just under
Maire earns €12,800 from a part time role and has no other income.
- Annual income: €12,800
- Below €13,000 threshold
- USC payable: €0
Worked example, just over
Maire takes an extra shift and earns €13,200 for the year.
| Band | Income in band | Rate | USC | | --- | --- | --- | --- | | First €12,012 | €12,012 | 0.5 percent | €60.06 | | Next €1,188 | €1,188 | 2 percent | €23.76 | | Total USC | | | €83.82 |
The extra €400 of income costs €83.82 in USC, an effective marginal rate of nearly 21 percent on the extra euros.
Weekly equivalent
The €13,000 threshold equates to:
- Weekly: €250
- Fortnightly: €500
- Monthly: €1,083.33
If your pay in a single period is briefly above the equivalent threshold but your annual total is under €13,000, you may be initially deducted USC and refunded at year end, or have it adjusted on cumulative basis.
Special exemption categories
Certain payments are USC exempt regardless of total income:
- All Department of Social Protection payments
- Statutory redundancy payments
- Maintenance payments under court order
- Certain ex gratia termination payments up to limits
- Foster care allowance
- Rent a Room relief income (within €14,000 limit)
Cumulative adjustment
Most employees on cumulative basis have USC corrected automatically if pay drops below threshold mid year. Refunds appear on subsequent payslips.
Educational notice
This article describes the general rules. Individual circumstances vary. Refer to Revenue.ie for the latest definitive guidance.