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 | Yes |
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.
Yes. Employee contributions to an occupational pension scheme or a PRSA are deducted from gross pay before USC is calculated. If you contribute €5,000 to a pension on a €50,000 salary, USC is calculated on €45,000 — saving around €150 in USC on top of the income tax saving.
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 4.2% 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.
Yes — employee pension contributions are deducted before USC is calculated. This makes pension saving doubly tax-efficient: it reduces both your income tax (PAYE) and your Universal Social Charge.
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