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USC in 2026 and 2027: bands, exemptions and reduced rates
Last updated 16 October 2026
USC is charged on all your income once it passes €13,000. On €50,000 it is €1,032.82 in 2026 and €1,016.82 in 2027.
The Universal Social Charge (USC) is a tax on gross income (income before tax), separate from income tax. Tax credits don't reduce it, and nor do pension contributions. Each person pays USC on their own income: married couples can't share bands.
The bands
If your income for the year is €13,000 or less, you pay no USC. Above that, USC is charged on all of it, from the first euro:
| Income, 2026 | Rate |
|---|---|
| First €12,012 | 0.5% |
| €12,012.01 to €28,700 | 2% |
| €28,700.01 to €70,044 | 3% |
| Above €70,044 | 8% |
Budget 2027 moves the top of the 2% band from €28,700 to €30,300, so anyone earning more than that pays €16 less in 2027. The other bands don't change. The change takes effect when Finance (No. 2) Bill 2026 is enacted.
An example
Revenue's own example: an employee earning €50,000 in 2026.
| €12,012.00 × 0.5% | €60.06 |
| €16,688.00 × 2% | €333.76 |
| €21,300.00 × 3% | €639.00 |
| USC for the year | €1,032.82 |
Reduced rates
If you hold a full medical card, or are 70 or over, and your income is €60,000 or less, USC is capped: 0.5% on the first €12,012 and 2% on the rest. On €50,000 that is €819.82 instead of €1,032.82. A GP visit card doesn't qualify, and medical card holders need to tell Revenue so their employer applies the lower rates.
Income that has no USC
- social welfare payments from the Department of Social Protection
- income that has already had DIRT (the tax on savings interest) taken off
- income covered by rent-a-room relief or childcare services relief
- redundancy pay set by law, and extra payments within the tax-free limits
The 3% surcharge
Self-employed and other non-PAYE income over €100,000 pays an extra 3%, so the top rate on that slice is 11%. It does not apply to employment income.
How it shows on a payslip
USC is collected each pay day using cut-off points on your Revenue Payroll Notification: the yearly bands divided by 52 or 12. In 2026 the first weekly band is €231 (€12,012 ÷ 52) at 0.5%. Like income tax, it is cumulative, so an uneven month evens out over the year.
Work it out
Sources
- Revenue: Standard rates and thresholds of USC (checked 25/10/2026)
- Revenue: Reduced rates of USC (checked 25/10/2026)
- Revenue: Other rates of USC (3% surcharge on non-PAYE income over €100,000) (checked 25/10/2026)
- Revenue: Calculating your USC (worked examples for 2026) (checked 16/10/2026)
- Revenue: Payments and income exempt from USC (exemption limit €13,000, 2022 to 2026) (checked 25/10/2026)
- Department of Finance: Budget 2027: Tax Policy Changes (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.