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 €28,700
- 3 percent on €28,700 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 €16,688 | €16,688 | 2 percent | €333.76 | | Next €41,344 | €41,344 | 3 percent | €1,240.32 | | Above €70,044 | €79,956 | 8 percent | €6,396.48 | | Total | | | €8,030.62 |
Worked example, self employed €150,000
Diarmuid is self employed with profit of €150,000.
Standard USC: €8,030.62 (same as Niamh).
Surcharge:
- 3 percent on €50,000 (income above €100,000) = €1,500
Total USC: €9,530.62.
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.