## 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.