## The base USC structure is identical
Both self employed and PAYE workers use the same four band USC structure in 2026:
- 0.5 percent on the first €12,012
- 2 percent on €12,012 to €27,382
- 4 percent on €27,382 to €70,044
- 8 percent above €70,044
Where the systems differ is in the surcharge that applies only to self employed income above €100,000.
## The 3 percent surcharge
Self employed individuals pay an additional 3 percent USC on profit exceeding €100,000. This brings the marginal USC rate on that income to 11 percent. PAYE workers do not face this surcharge regardless of how much they earn.
## Worked example, PAYE €150,000
Niamh is a PAYE employee earning €150,000.
| Band | Income | 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 | €79,956 | 8 percent | €6,396.48 |
| Total | | | €8,470.42 |
## Worked example, self employed €150,000
Diarmuid is self employed with profit of €150,000.
Standard USC: €8,470.42 (same as Niamh).
Surcharge:
- 3 percent on €50,000 (income above €100,000) = €1,500
Total USC: €9,970.42.
Diarmuid pays €1,500 more than Niamh on the same income, despite being in the self employed system.
## Why the surcharge exists
The 3 percent surcharge was introduced to ensure higher earners outside PAYE contribute more, particularly given that PAYE workers always pay the Employee PAYE Credit shortfall.
## Mixed income individuals
Some people have both employment and self employed income. The €100,000 surcharge threshold applies only to the self employed portion. Salary income is excluded from the calculation.
### Worked example
Conor earns €80,000 from employment and €50,000 self employed profit. Total €130,000.
- Standard USC on €130,000 (combined)
- Surcharge: only on self employed income above €100,000. Since his self employed profit alone (€50,000) is under €100,000, no surcharge applies.
## How USC is paid
- PAYE workers: deducted by employer each pay period
- Self employed: paid through preliminary tax (31 October) and balancing payment by 31 October the following year
## Educational notice
USC rules can change in budgets. Confirm current rates on Revenue.ie. Specific situations should be reviewed with a qualified tax adviser.