| | Universal Social Charge (USC) thresholds and rates |
| Description | Universal Social Charge (USC) is a tax on income. You pay USC if your gross income is more than €13,000 per year. Once over this limit, you pay the relevant rate of USC on all your income. |
| Resolution | The 2026 tax year - The 2% USC rate band increases by €1,318, 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 2024: | Annual earnings | Rate | | Up to €12,012 | 0.5% | | From €12,012.01 to €28,700 | 2% | | From €25,760.01 to €70,044.00 | 4% | | €70,044.01 and above | 8% | | Self-employed income over €100,000 | 11% | The 2025 tax year - The middle rate of USC falls 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% | Employees aged 70 or older, and medical card holders are exempt from paying USC at the 3% and 8% rates. If your employees earn less than €13,000 in the year, they’re exempt from USC and receive an exempt status. If Revenue has not made the employee exempt, you still need to deduct USC from their earnings. Revenue refunds the employee. For more information on exempt income, read Income exempt from USC. |
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