IRISH PAYROLL
The Universal Social Charge, explained.
USC is a tax on most Irish income. If your total income for the year is over €13,000 you pay it on a sliding scale of four bands. Understand the 2026 bands, the exemption, and how to spot a USC mistake on your payslip.
Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or Revenue.
The 2026 USC bands
USC applies to your gross income (before pension in most cases) once your total income for the year is above €13,000. The bands are cumulative — each rate applies only to the slice of income inside that band.
| Band | Rate | Income in 2026 |
|---|---|---|
| Band 1 | 0.5% | First €12,012 |
| Band 2 | 2% | €12,012.01 to €28,700 |
| Band 3 | 3% | €28,700.01 to €70,044 |
| Band 4 | 8% | Balance above €70,044 |
Budget 2026 raised the 2% ceiling to €28,700 (from €27,382), in line with the minimum-wage increase. A 3% surcharge applies to self-employed income above €100,000.
The €13,000 exemption and the reduced rate
- If your total income for the year is €13,000 or less, you pay no USC at all.
- A reduced top rate of 2% applies if you are aged 70 or over, or hold a full medical card, and your income is €60,000 or less. This concession runs to 31 December 2027.
- USC is charged separately from PAYE and PRSI — it is its own line on your payslip and funds general government revenue, not social-welfare entitlements.
What PayslipIQ checks on your USC
- Whether the right band rates have been applied to each slice of your pay.
- Whether you have been charged USC despite being under the €13,000 exemption (refundable at year-end).
- Whether a reduced-rate entitlement (over-70 or medical card) has been missed.
- Whether a bonus or large month has briefly tipped income into the 8% band — and how it settles.
Read more on USC
USC rates and bands 2026
0.5%, 2%, 3% and 8% in full.
USC methodology
Exactly how PayslipIQ computes USC.
Over-70 / medical-card rate
When the capped 2% rate applies.
USC on overtime
How the bands apply to a single big month.
USC on a bonus
Why a bonus tips you into 8% for the period.
Self-employed USC
How USC and the 3% surcharge apply.
Common questions
What are the 2026 USC bands?
For 2026: 0.5% on the first €12,012, 2% on income from €12,012 to €28,700, 3% on income from €28,700 to €70,044, and 8% on income above €70,044. People with total income of €13,000 or less in the year are exempt entirely.
Why am I paying USC if I earn under €13,000?
You should not be over the year. If a single payslip is high enough that USC is deducted on a cumulative basis but you remain below €13,000 for the year, the USC is refunded at year-end via your Statement of Liability. You can also update your status with Revenue.
Is USC the same as PRSI?
No. USC and PRSI are separate deductions on Irish payslips. USC funds general government revenue; PRSI funds social-welfare entitlements such as the State Pension, jobseeker and illness benefit. They appear as separate lines.
Can I reduce my USC bill?
USC has very few reliefs. The main lever is reducing the income subject to it — for example, pension contributions (AVCs) reduce the income on which USC is charged. Medical-card holders and over-70s on low income may qualify for the reduced 2% top rate.
Run the USC Calculator
Free. Private. No signup.
Open the toolPayslipIQ provides educational information and estimated calculations only. It does not provide tax, legal, financial, payroll, accounting, pension or employment advice. Always verify your payslip, PAYE, USC, PRSI, tax credits, deductions and take-home pay with your employer's payroll department, Revenue, a qualified tax adviser, accountant or another appropriately qualified professional.