📊 USC 2025: Quick Facts
- Exemption threshold: €13,000 (fully exempt if under)
- Standard rates: 0.5%, 2%, 3.5%, 8%
- Reduced rate available: Medical card holders, over-70s earning under €60,000
- Self-employed surcharge: 3% on income over €100,000
- Deducted: Automatically through payroll by your employer
The Universal Social Charge (USC) is a tax deducted from your wages alongside income tax and PRSI. While you can't avoid paying it (unless you're exempt), understanding how USC works helps you see exactly where your money goes—and whether you're paying the correct amount.
At MyTaxRebate.ie, our TAIN-registered specialists review your complete tax situation, including USC. If you've overpaid due to incorrect rate bands or missed reliefs, we can help you claim back what you're owed.
Not sure if you're paying the right amount of USC?
Start My Free Tax Review →What is the Universal Social Charge?
Introduced in 2011 to replace the Health Levy and Income Levy, USC is charged on your gross income before pension contributions. Unlike income tax, USC has no tax credits to reduce it—you pay based on your income bands. However, certain exemptions and reduced rates apply.
USC applies to most forms of income including:
- Employment income (wages, salary, bonuses)
- Self-employment income
- Rental income
- Investment income and dividends
- Pension income
USC Rates for 2025
USC is charged at different rates on different portions of your income. Here are the current rates for 2025:
| Income Band | USC Rate |
|---|---|
| First €12,012 | 0.5% |
| €12,012 to €25,760 | 2% |
| €25,760 to €70,044 | 3.5% |
| Over €70,044 | 8% |
Example: USC on €40,000 Salary
Let's calculate the USC on a €40,000 salary:
| Income Band | Rate | USC Amount |
|---|---|---|
| First €12,012 | 0.5% | €60.06 |
| €12,012 - €25,760 | 2% | €274.96 |
| €25,760 - €40,000 | 3.5% | €498.40 |
| Total Annual USC | €833.42 |
Who is Exempt from USC?
You are fully exempt from USC if your total income is €13,000 or less per year. This includes:
- Part-time workers earning under €13,000 annually
- Students working while studying
- Anyone whose total income from all sources is below the threshold
💡 Important Note
Once you earn over €13,000, USC applies to your entire income, not just the amount over €13,000. This means crossing the threshold can result in a noticeable increase in tax.
Reduced USC Rates
Certain individuals qualify for reduced USC rates:
Medical Card Holders
If you hold a full medical card and your income is €60,000 or less, you pay reduced rates:
| Income Band | Reduced Rate |
|---|---|
| First €12,012 | 0.5% |
| Balance up to €60,000 | 2% |
Over 70 with Income Under €60,000
Individuals aged 70 or over with total income of €60,000 or less also qualify for the reduced rates shown above.
Self-Employed USC Surcharge
Self-employed individuals with income over €100,000 pay an additional 3% USC surcharge on income above this threshold. This brings the total USC rate to 11% (8% + 3%) on self-employment income over €100,000.
Can You Claim Back USC?
While you can't directly reduce USC through tax credits, there are situations where you might be owed a refund:
- Income below €13,000: If your total annual income was below the exemption threshold but USC was deducted
- Medical card holder: If you qualified for reduced rates but standard rates were applied
- Incorrect calculations: If your employer applied the wrong rate bands
- Emergency tax: If you paid emergency USC rates when starting a new job
More importantly, while USC can't be reduced directly, you can reduce your overall tax burden through tax credits and reliefs that lower your income tax. Our specialists at MyTaxRebate.ie review all aspects of your tax situation to maximise your refund.
USC vs Income Tax: What's the Difference?
| Feature | USC | Income Tax |
|---|---|---|
| Tax Credits Apply? | No | Yes |
| Rates | 0.5% - 8% | 20% / 40% |
| Exemption | Under €13,000 | Via credits |
| Based On | Gross income | Taxable income |
How MyTaxRebate.ie Can Help
While USC itself offers limited refund opportunities, our comprehensive tax review checks for all the income tax reliefs that can put money back in your pocket:
- Rent Tax Credit: up to €1,000 per year
- Medical Expenses: 20% back on qualifying expenses
- Flat Rate Expenses: Automatic deductions for many occupations
- WFH Relief: 30% of electricity, heating, broadband
Find out what tax reliefs you're missing
Start My Free Tax Review →Takes 2 minutes • No obligation • Average refund €1,080
Frequently Asked Questions
What does USC stand for?
USC stands for Universal Social Charge. It's a tax on income that was introduced in 2011 and applies to most forms of income in Ireland.
Is USC the same as PRSI?
No. USC is a separate tax that goes to general government revenue. PRSI (Pay Related Social Insurance) specifically funds social welfare benefits and your State pension entitlement.
Can I avoid paying USC?
You can only avoid USC if your total income is €13,000 or less per year. Once you exceed this threshold, USC applies to your entire income at the standard rates.
Do pensioners pay USC?
Yes, pension income is subject to USC if total income exceeds €13,000. However, individuals aged 70+ with income under €60,000 qualify for reduced rates.
How do I check if I'm paying the right USC?
Your payslip shows USC deductions. You can verify the rates against the bands above, or have MyTaxRebate.ie conduct a free review of your tax situation to ensure you're paying the correct amount.
Ready to Check Your Tax Position?
Our specialists review your entire tax history to find every relief you're entitled to.
Start My Free Tax Review →