Peadar Tóibín
Question:255. Deputy Peadar Tóibín asked the Tánaiste and Minister for Finance the amount it is estimated to cost if USC was scrapped for taxpayers earning under €50,000. [31587/26]
View answerThursday, 30 April 2026
Questions (255)
Written answers
I am advised by Revenue that the estimated cost for increasing the Universal Social Charge (USC) exemption limit from €13,000 to €50,000, as per the proposal outlined by the Deputy, on a first- and full-year basis, is €790m and €905m respectively.
It is important to note that under this proposal, in circumstances where a taxpayer’s income exceeds €50,000 per annum then they pay USC on their entire income as per the below table:
|
Income Bands |
PAYE Income % |
Non-PAYE Income % |
|
€0 - €12,012 |
0.5 |
0.5 |
|
€12,013 - €28,700 |
2 |
2 |
|
€28,701 - €70,044 |
3 |
3 |
|
€70,044+ |
8 |
8 |
|
€100,000 |
8 |
11 |
This is a cost estimate for 2026 and is based on Revenue’s micro-simulation tool, Tax Modeller, using actual data for the latest year available, currently 2023, adjusted for income and employment trends in the interim.
Reply not received from Department.