Budget 2018 USC Reductions
As expected there were some adjustments to the Universal Social Charge (USC) in Budget 2018 .
The 2.5% rate of USC will be reduced to 2% and the threshold for this level of USC will rise from €18772 to €19372
The 5% rate of USC will drop to 4.75%
These new reduced USC rates and bands will apply from Jan 1st 2018
(People with Income under €13000 are exempt)
- €0 to €12012 = 0.5%
- €12010 to €19372 = 2%
- €19372 to €70044 = 4.75%
- over €70004 = 8%
For a single earner on €35000 a year – these changes will see a fall in USC of just €90 a year – or €1.73 a week.
A higher earner on €75000 a year will see a USC cut of €178 a year or €3.42 a week.
The USC relief for medical card holders is being extended for a
further two years . Medical card holders and people aged 70 years and older whose income does not exceed €60,000 will now pay a maximum USC rate of 2%