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Universal Social Charge (USC) thresholds and rates

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Summary

Universal Social Charge (USC) thresholds and rates for the last two years in Sage Payroll.

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

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%

 

▼ USC Bands and Rates - 2027

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%

 

 

▼ USC band and rates - 2025

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%.

 

TIP:

For more information, visit the government's site revenue.ie/en/jobs-and-pensions/usc/standard-rates-thresholds.aspx

 

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