USC band and rates USC band and rates in 2026 The 2% USC rate band increased by €1,318 in 2026, raising the ceiling from €27,382 to €28,700. This ensures full-time minimum-wage earners remain outside the higher USC rate bands.
The following rates and thresholds apply from 1 January 2026: | Annual earnings | Rate | | Up to €12,012 | 0.5% | | From €12,012.01 to €28,700 | 2% | | From €28,700.01 to €70,044 | 3% | | €70,044.01 and above | 8% | | Self-employed income over €100,000 | 11% | The 2% USC rate band will increase in 2027 by €1,600 from €28,700 to €30,300. | Annual earnings | Rate | | Up to €12,012 | 0.5% | | From €12,012.01 to €30,300 | 2% | | From €30,300.01 to €70,044 | 3% | | €70,044.01 and above | 8% | | Self-employed income over €100,000 | 11% | In 2025, the middle rate of USC fell from 4% to 3%. The entry point for this rate will increase by €1,622, in line with the increase to the National minimum wage The following rates and thresholds apply from 1 January 2025: | Annual earnings | Rate | | Up to €12,012 | 0.5% | | From €12,012.01 to €27,382 | 2% | | From €27.382.01 to €70,044 | 3% | | €70,044.01 and above | 8% | | Self-employed income over €100,000 | 11% | Reduced rates and exemptions The reduced rate of 2% applies for: - Individuals aged 70 years or over whose aggregate income for the year is €60,000 or less
- Full medical card holders under 70 years whose aggregate income for the year is €60,000 or less
There are no changes to the Reduced rate of USC in 2027. Exemptions If your employees earn less than €13,000 in the year, they're exempt from paying USC. If Revenue has not made the employee exempt, you still need to deduct USC from their earnings. Revenue refunds the employee. For more information, read Income exempt from USC. Emergency rates The emergency USC rate is 8%. |