Dáil Éireann Debate, Tuesday - 7 July 2026
267. Deputy Pádraig O'Sullivan asked the Tánaiste and Minister for Finance the estimated first and full-year costs of reducing each of the USC rates by 1%; the number of people impacted by such reductions, in tabular form; and if he will make a statement on the matter. [51372/26]
Amharc ar fhreagraI am advised by Revenue that the estimated cost of reducing the Universal Social Charge (USC) rate of 0.5% to 0%, and the additional 2%, 3% and 8% USC rates to 1%, 2% and 7% respectively, as per the proposal outlined by the Deputy, are broken down on a first and full year basis, in the below table. The table also presents the estimated number of beneficiary taxpayer units by each USC rate adjustment, rounded to the nearest 100 and costs are rounded to the nearest €5 million.
|
Universal Social Charge (USC) rate adjustment |
First Year Cost €m |
Full Year Cost €m |
Estimated number of taxpayer units benefitting |
|
0.5% to 0% |
160 |
180 |
2.5 million |
|
2% to 1%* |
400 |
460 |
2.5 million |
|
3% to 2% |
420 |
480 |
1.6 million |
|
8% to 7%** |
300 |
360 |
0.5 million |
*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, these estimated first and full year costings assume that this reduced rate is also reduced to 1%, as this is in line with the second USC rate.
**Includes those paying the USC surcharge on non-PAYE income exceeding €100,000 in a year, at the rate of 3%.
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. A taxpayer unit refers to individuals except in the case of couples who are jointly assessed, in which case the couple are counted as one taxpayer unit.
