IRISH PAYROLL
The Universal Social Charge, explained.
USC is a tax on most Irish income above €13,000 a year. Understand the four bands, the exemption threshold, and how to spot a USC mistake.
Educational estimates only. Not tax, legal, financial, payroll or employment advice. Verify with your employer's payroll team or Revenue.
Read more on USC
USC bands 2026
0.5 percent, 2 percent, 4 percent, 8 percent.
Exemption threshold
Why earnings below €13,000 a year owe no USC.
Over-70 reduced rate
A capped USC band applies in some cases.
USC on overtime
How the bands apply to a single big month.
USC on a bonus
Why a bonus tips you into 8 percent for the period.
Self-employed USC
How USC applies to self-assessed income.
Common questions
What are the 2026 USC bands?
For 2026: 0.5 percent on the first €12,012 of income, 2 percent on the next €15,370 (to €27,382), 4 percent on the next €42,662 (to €70,044), and 8 percent on income above €70,044. People earning under €13,000 a year are exempt entirely.
Why am I paying USC if I earn under €13,000?
You probably will not be. If a single payslip is high enough that USC applies on the cumulative basis, but you remain below €13,000 for the year, USC will be refunded at year-end via your Statement of Liability. Or you can 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 (state pension, jobseeker, illness benefit). They appear as separate lines.
Can I reduce my USC bill?
USC has very few exemptions or reliefs. The main lever is reducing taxable income (e.g. AVCs into a pension reduce the income subject to USC). Medical-card holders aged over 70 with low income may qualify for a reduced rate.
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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.