Emer Currie
Ceist:481. Deputy Emer Currie asked the Tánaiste and Minister for Finance the estimated cost of abolishing the 0.5% and 2% rate of USC; and if he will make a statement on the matter. [40203/26]
Amharc ar fhreagraTuesday, 26 May 2026
Ceisteanna (481)
Freagraí scríofa
I am advised by Revenue that the estimated cost of abolishing the 0.5% and 2% rate of Universal Social Charge (USC), as per the proposal outlined by the Deputy, on a first and full year basis, is €910 million and €1,040 million respectively.
As a reduced rate of USC of 2% currently applies for those aged 70 years or older with income of €60,000 or less and for those who hold a full medical card with income of €60,000 or less, the estimated costings assume this reduced rate remains unchanged at 2%, but that eligible taxpayers would pay no USC on the first €28,700, in-line with the start of the 3% USC band for other taxpayers paying the normal rates of USC.
These costs are estimates for 2026 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.