What Is the Universal Social Charge?
The Universal Social Charge (USC) is a tax on gross income — before any pension contributions or other deductions. It was introduced in 2011 to replace the Health Levy (income levy) and the Health Contribution. USC is separate from both income tax and PRSI.
Updated for 2026 Revenue rates.
USC Rates and Bands for 2026
USC is charged at progressive rates across several income bands:
- 0.5% — on the first €12,012 of income
- 2% — on income between €12,012 and €25,760
- 4% — on income between €25,760 and €70,044
- 8% — on income over €70,044
These rates apply to gross income from all sources — employment, self-employment, pensions, and rental income.
Reduced Rates for Aged 70+ and Medical Card Holders
If you are aged 70 or over, or if you hold a full medical card (and have done so for the full tax year), reduced USC rates apply:
- 0.5% — on the first €12,012 of income
- 2% — on income between €12,012 and €25,760
- 4% — on income over €25,760
Note: There is no 8% band for this group. The maximum rate is 4% irrespective of total income.
USC Exemption
You are exempt from USC for a tax year if your total income does not exceed €13,000. This is a single threshold — there is no tapering. If your income is €13,001 or more, USC applies to your entire income at the normal rates.
Income Subject to USC
USC applies to virtually all income types, including:
- Employment income (salary, wages, bonuses, benefits-in-kind)
- Self-employment income
- Occupational and State pensions
- Rental income
- Investment income
Income NOT Subject to USC
- Social welfare payments (Child Benefit, Jobseeker's Allowance, State Pension Non-Contributory)
- Certain lump sum payments on redundancy (up to certain limits)
- Income already subject to the Deposit Interest Retention Tax (DIRT)
How USC Is Collected
For PAYE employees, USC is deducted automatically from your wages by your employer based on your RPN. For self-employed individuals, USC is paid through the self-assessment system as part of your preliminary tax and Form 11 filing.
USC vs. PRSI
While both USC and PRSI are deducted from income, they serve different purposes:
- USC — a general revenue-raising tax, not linked to any specific benefit
- PRSI — a social insurance contribution that funds specific benefits (State Pension, Jobseeker's Benefit, Illness Benefit, etc.)