USC Calculator Ireland 2026
Universal Social Charge explained — what it is, how it's calculated, and how to estimate it.
Universal Social Charge explained — what it is, how it's calculated, and how to estimate it.
USC (Universal Social Charge) is a separate tax on gross income, introduced in 2011 to replace the Health Levy and Income Levy. Unlike PAYE income tax, USC has no standard rate cut-off — it uses its own four progressive bands. You pay USC in addition to PAYE and PRSI; they are entirely separate deductions on your payslip.
Key point: USC is charged on gross income before tax credits. Even if your Personal and PAYE credits reduce your income tax to zero, you still pay USC once your income exceeds €13,000.
| Income Band | Rate | Who It Affects |
|---|---|---|
| First €12,012 | 0.5% | All earners above €13,000 |
| €12,012 – €28,700 | 2% | All earners above €13,000 |
| €28,700 – €70,044 | 3% | Income above €28,700 |
| Above €70,044 | 8% | Income above €70,044 |
Exemption: If total annual income is €13,000 or less, no USC is due at all.
Medical card holders under 70 pay a maximum 2% rate on all income — the 3% and 8% bands do not apply.
Over 70s with income under €60,000 also pay a maximum 2% rate.
Budget 2026 widened the 2% band from €27,382 to €28,700 — the only USC change announced. This saves about €13 per year for anyone earning over €28,700 (the €1,318 difference is taxed at 2% instead of 3%). All other rates, thresholds, and the exemption limit were unchanged.
| PAYE (Income Tax) | USC | |
|---|---|---|
| Reduced by tax credits? | Yes | No |
| Exemption | Via credits (you still file) | Under €13,000 income |
| Rates | 20% / 40% | 0.5% / 2% / 3% / 8% |
| Applies to bonuses? | Yes | Yes |
| Reduced by pension? | Yes | No |
USC applies to bonuses, overtime, and ex-gratia payments in the same way as regular salary. Revenue uses the cumulative method: your employer looks at your total income year-to-date and applies USC progressively across the full year. A large bonus mid-year might push more of your income into the 3% or 8% bands — you can see the effect using the salary calculator by adding bonus to your annual salary.
No. Employee contributions to an occupational pension scheme or a PRSA get income tax relief only. USC is calculated on your gross pay before pension deductions, so if you contribute €5,000 to a pension on a €50,000 salary, USC is still charged on the full €50,000. The saving is in income tax: €1,000 at 20%, or €2,000 on any part of the contribution that would otherwise be taxed at 40%.
Once income exceeds €70,044, the marginal rate on each additional euro jumps from 3% to 8% USC — on top of the 40% PAYE rate and 4.35% PRSI that already apply. This creates a combined marginal rate of over 52% on income just above €70,044. If your salary is near this threshold, even a small raise can have a surprisingly large tax impact. See our USC cliff guide for a detailed explanation.
They are entirely separate charges. PAYE is Income Tax, reduced by your Personal and PAYE credits. USC is a separate social charge with its own bands — tax credits do not reduce it at all. Both appear as distinct line items on your payslip.
If your total gross income from all sources is €13,000 or less in the year, you pay no USC at all. Once income exceeds €13,000, USC applies to the full amount from the first euro (not just the amount above €13,000).
Yes. USC applies to almost all income — employment, rental, self-employment, and most social welfare payments — though certain specific payments are exempt. Rental income is included in the total income figure used to calculate USC.
Yes. Medical card holders under 70 pay a flat 2% USC rate on all income regardless of how much they earn — the 3% and 8% rates never apply. This can represent a significant saving for higher earners who qualify.
No. Pension contributions reduce your income tax (PAYE) only. USC is calculated on gross pay before pension deductions, so the contribution does not change your USC bill.
Not exactly — income above a USC band threshold is taxed at the higher rate only on the portion above the threshold (not the whole salary). However, crossing the €70,044 threshold means additional income is taxed at a combined marginal rate of over 52%, which is a steep effective increase on the extra euro.
Updated: June 2026 · Source: Revenue.ie 2026 USC thresholds