Universal Social Charge Ireland

The Universal Social Charge (USC) was introduced in 2011 as part of the Irish government's effort to stabilise public finances during the economic downturn. The Universal Social Charge is a tax payable on your total income. It is collected by Revenue and forms part of the State’s overall tax receipts that fund public services. This page provides a comprehensive guide to the Universal Social Charge in Ireland.

The Universal Social Charge is a tax on income that applies to most types of income, including wages, salaries, bonuses, pensions, and self-employment income. USC is generally calculated on your total income for USC purposes (for example, employment income, taxable employer benefits, self-employed income and certain investment income). Some income and payments are exempt from USC, and certain capital allowances may be deducted before USC is calculated. Employee pension contributions do not reduce USC.

You pay USC if your total income is more than €13,000 per year. Once your income is over this limit, USC is calculated using the relevant rates on all of your income. It is calculated on a weekly or monthly basis. USC does not apply to payments from the Department of Social Protection (DSP) and certain similar payments (and some other income types are also exempt).

You might be wondering, “how much USC should I pay?” 

Well, the standard rates and thresholds of USC for 2026 are:

You are exempt from USC if your total income is €13,000 or less (2026).

In addition, certain payments and income types are exempt, including:

• Payments from the Department of Social Protection (DSP) and certain similar payments
• Income on which DIRT (Deposit Interest Retention Tax) has already been paid, and certain other exempt income types listed by Revenue

Reduced USC rate (medical card / age 70+)

Reduced USC rates can apply if your income is €60,000 or less and you are aged 70+ or hold a full Medical Card (not a GP visit card). Under the reduced rates for 2026, USC is charged at 0.5% on the first €12,012 and 2% on the balance.

No, the Universal Social Charge (USC) and Pay As You Earn (PAYE) are not the same, although they are both components of Ireland's tax system and are often deducted together from an individual's income by their employer.

USC has different rates and thresholds depending on your income. PAYE is income tax on employment income. For employees, both USC and PAYE are typically deducted through payroll by your employer on behalf of Revenue.