Budget 2013 introduced higher rates of USC for some people earning over €60,000 a year. The changes affect those people with medical cards and those over 70 – who were previously paying a capped rate of 4% USC – they will now pay the same top rate USC as everyone else – 7%
The rates for USC from January 2013 are as follows
Zero if total income is under €10036 a year
For people under 70 with income of €10,036 or more the rates will be :
2% on all income from 0 up to €10,036
4% on earnings between €10,037 and €16,016
7% on any income over €16,016
People aged 70 or more with income under €60000 will have a maximum rate of of 4% USC (Even on Income over €16,016 ) .
Over 70’s with income over €60,000 will pay 7% USC on income over €16016
Medical card holders with income under €60,000 also have a top rate of 4% USC .
Medical Card holders with income of €60,000 or more will pay 7% USC on income over €16,016 . (Why someone on €60k has a medical card is another matter?)
See more about Medical Cards and USC here.
Some incomes are not liable for USC – such as welfare benefits , state pensions.
See here for the Income types that are not subject to the Universal Social Charge
See here for details of USC Deductions for 2012